The industry association, which sampled responses from 21 fund management companies with global assets worth $11.5trn, said the overall increase in positive sentiment for equities could be primarily attributed to a drop in the number of managers who had a neutral view on the asset class in October.
A significant number of managers have turned positive towards European markets, with 58% of the respondents taking an overweight position in January, up from 31% in October.
Even the number of managers having an underweight call on European equities dropped to 5% in January from 31% in October.
The recent massive stimulus programme announced by the European Central Bank, which has put downward pressure on the euro and improved the outlook on corporate sector earnings, has lifted sentiment for European equities.
In Asia ex-Greater China markets, the survey findings showed more managers have taken an overweight position (33% in January compared to 17% in October).
One region where managers have become underweight equities is emerging markets (55% in January from 29% in October).
The survey also found a marginal drop in appetite for Japanese equities and a moderation in optimism for US equities.
Underweight bonds
The overall sentiment for bonds was less sanguine, with about 40% underweighting this asset class. Half of the respondents stayed neutral, while about 10% had turned positive.
More managers took an underweight position in the US, European, emerging market and high yield bond segments.
The only exception was Asian bonds, where no managers took an underweight position, against 10% in October. But even for this sector, the vast majority were in the neutral camp – 82% in January up from 60% in October.
The percentage in the overweight camp had dropped to 18% from 30% during the same period.
Results of the HKIFA Fund Managers Market Outlook Survey (late January 2015)
|
|
Underweight |
Neutral |
Overweight |
|||
|
|
Jan 2015 |
Oct 2014 |
Jan 2015 |
Oct 2014 |
Jan 2015 |
Oct 2014 |
|
Equity |
5% |
7% |
15% |
29% |
80% |
64% |
|
Bond |
40% |
38% |
50% |
62% |
10% |
0% |
|
Cash |
50% |
42% |
44% |
33% |
6% |
25% |
|
|
|
|
|
|
|
|
|
Equities |
|
|
|
|
|
|
|
US |
11% |
8% |
42% |
31% |
47% |
61% |
|
Europe |
5% |
31% |
37% |
38% |
58% |
31% |
|
Asia (excl. Greater China) |
0% |
0% |
67% |
83% |
33% |
17% |
|
Greater China |
12% |
28% |
29% |
36% |
59% |
36% |
|
Japan |
0% |
7% |
40% |
29% |
60% |
64% |
|
Emerging Markets |
55% |
29% |
30% |
57% |
15% |
14% |
|
|
|
|
|
|
|
|
|
Bonds |
|
|
|
|
|
|
|
US |
35% |
25% |
50% |
58% |
15% |
17% |
|
Europe |
30% |
9% |
50% |
64% |
20% |
27% |
|
Asia |
0% |
10% |
82% |
60% |
18% |
30% |
|
Emerging Markets |
40% |
23% |
35% |
54% |
25% |
23% |
|
High Yield |
30% |
0% |
40% |
46% |
30% |
54% |
