‘3 out of 4 global funds bullish on stocks’

THREE out of every four global fund managers are bullish on equities this first quarter of 2013, with the remaining quarter keeping a neutral outlook, based on the latest fund managers’ survey by British bank HSBC.

The survey showed that 75 percent of fund managers have an “overweight” view towards equities this quarter, much higher than the 40 percent share in the previous survey in the fourth quarter of 2012.

overweight view

An “overweight” view is a recommendation to buy stocks in excess of a model index or portfolio while the “underweight” view refers to the opposite.

No fund manager is underweight on equities, the survey said.

Over six in 10 fund managers (versus 30 percent in the previous quarter) are “underweight” on cash as an asset class, while over a third (versus 20 percent previously) are “underweight” on bonds. No fund manager holds a positive outlook on bonds or cash for the first quarter.

sentiment

“The bearish sentiment of global fund managers towards cash this quarter underlines potential opportunities in the market. They are looking at stronger prospects in equities and selective fixed income markets, based on valuation and on the back of improving economic indicators in the US and China,” said HSBC’s regional head of wealth development for Asia Pacific Vineet Vohra.

Those who held overweight views on North American equities constituted 75 percent of respondents, given the relatively resilient US economy. This share increased from 60 percent in the previous quarter’s survey./INQUIRER