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PRIVATE EQUITY, WEALTH MANAGEMENT | Staff Reporter, China
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57% of global fund managers still positive on equities in 2Q

But some remain cautious amidst Eurozone debt crisis.

According to a release, fifty seven per cent of global fund managers (vs 75% in 1Q13) covered in HSBC’s latest Fund Managers’ survey continue to favour equities in the second quarter of 2013 with no one holding underweight views towards this asset class.

A tenth of respondents (14%) turned overweight towards bonds and cash in 2Q13 from none in the previous quarter (0% for both in 1Q13). Over two in five fund managers (43%) hold an underweight view towards bonds and cash compared to 38% and 63% respectively in 1Q13.

Mr Paul Arrowsmith, Head of Retail Banking and Wealth Management, HSBC Singapore said: “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.”

Emerging markets equities are back in the spotlight in 2Q13 as over half of fund managers (57%) hold positive views, compared to only 29% in the previous quarter. Preference for North America equities dropped from 75% to 57% while Asia Pacific ex Japan equities are favoured by 50% of fund managers, up from 43%.

No fund manager is underweight on Greater China, Emerging markets and Asia equities, while 14% are underweight on North America equities (vs 25% in 1Q13).

In terms of bonds, Asian local currency bonds (75%) stand out given the region’s stronger fundamentals and potential currency appreciation.

With the USD under pressure from the Fed’s continued support for quantitative easing, four in five (80%) fund managers are underweight US dollar bonds and none of them holds an overweight view towards this asset class. 

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