Fund managers expect rake hike in Dec, says survey

India back as overweight market for most investors

More than half of global fund managers expect the US Federal Reserve to increase rates in December, while a little over third see a rate hike in the first quarter of 2016, reveals a survey by Bank of America Merrill Lynch.

The US-based investment bank conducted this survey, titled No Pain, No Gain, between October 2 and 8, which saw participation of 209 fund managers across the world managing assets of around $500 billion.

 

Interestingly, the survey showed India is once again the overweight market for most investors, following sharp correction in the months of August and September.

The Indian markets had dropped nearly 10 per cent after China’s surprise devaluation in yuan in early August triggered a sell-off in emerging markets (EMs).

“Views on the Chinese economy, to a large extent, define investor views on EM equities. However, while more of our survey respondents believe the Chinese economy will see some improvement in the next 12 months and are also less bearish on China’s growth prospects, investors do not want exposure to EMs,” said the survey.

Indonesia and the Philippines saw their net overweight positions move to net underweight and neutral, respectively, according to the survey.