North American equities fall out of favour with fund managers

More than half of global fund managers continue to favour equities, with a preference gaining ground for Asia Pacific ex Japan stocks, according to second quarter results from HSBC's latest fund managers survey.

Around 57 per cent of fund managers were found to have positive views on equities, compared to only 29 per cent in the previous quarter. In addition, 43 per cent held an underweight view towards both bonds and cash categories, compared to 38 per cent and 63 per cent respectively in quarter one.

While preference for North American equities dropped from 75 per cent to 57 per cent quarter on quarter, Asia Pacific ex Japan equities were favoured by 50 per cent of fund managers, up from 43 per cent.

According to HSBC, no fund manager was underweight on Greater China, emerging markets and Asian equities, while 14 per cent were underweight on North American equities.

VIEW ALL

View all

Mike Danby, head of wealth management at HSBC Bank Australia, said some managers have become cautious due to renewed concerns on the Eurozone debt crisis.

Attracted to the better fundamentals, 75 per cent of fund managers were overweight in Asian local currency bonds (compared to 33 per cent), while the US Federal Reserve's continued push for quantitative easing measures saw preference for US dollar bonds fall from 43 per cent to holding no overweight position in quarter two.