Fund managers continue to favour equities in Q2: HSBC survey

Positive view on emerging market rises from 29% to 57%

Over half of global fund managers continue to favour equities in the second quarter of 2013, reveals HSBC's Fund Managers' survey.

However, the number of fund managers favouring equity declined to 57 per cent this quarter from 75 per cent in the previous quarter with not even a single fund manager holding an overweight view towards the asset class.

About 14 per cent of the respondents turned overweight towards bonds and cash in 2Q13 from none in the previous quarter, said HSBC in a release.

Meanwhile, 43 per cent of the fund managers have an underweight view towards bonds and cash compared to 38 per cent and 63 per cent respectively in 1Q13.

“Global fund managers generally remain optimistic about the prospects of equities. Emerging markets equities including Asia equities continue to be attractive as a result of better fundamentals. However, it is worth noting that some managers have turned cautious due to renewed concerns on the Eurozone debt crisis,” said Vineet Vohra, regional head of wealth development, Asia Pacific, HSBC.

About 57 per cent of the fund managers have positive view on the emerging markets in 2Q2013, up from just 29 per cent in the previous quarter.

Preference for North America equities dropped from 75 per cent to 57 per cent, while Asia Pacific ex-Japan equities are favoured by 50 per cent of fund managers, up from 43 per cent, the survey showed.

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