Half of fund managers polled in HSBC’s quarterly Fund Managers Survey are holding a positive view on equities in the first quarter of 2010, up from 33 per cent in the fourth quarter of 2009, according to a press release.
The majority of respondents (75 per cent) are bullish on Greater China equities in the first quarter of 2010, up from 57 per cent in the previous quarter.
Seventy per cent retain an overweight view on Asia-Pacific ex-Japan equities while 60 per cent are positive about emerging markets equities, up from 56 per cent in the previous quarter.
Half of the respondents are bullish on North American equities, more than double the number of respondents with an overweight view last quarter (22 per cent).
Jenny Lau, the Manager of Premier and Wealth Management for HSBC Brunei, said: “We see appetite for equities returning as increased signs of economic recovery are evident in emerging markets.
“This trend is particularly true within Asia-Pacific where growth is forecast to be sustainable.
“In addition, with bonds achieving record gains in 2009, fund managers have turned cautious towards this asset class and are looking to equities for growth.
“There is an opportunity for investors to diversify equity holdings as North American equities are starting to offer attractive returns as a result of an improving US economic outlook.”
Fund managers in the survey are less optimistic about bonds as an investment class, with over half (56 per cent) of respondents taking a neutral view in the first quarter of 2010, from 33 per cent in the fourth quarter of 2009.
Four in 10 fund managers (44 per cent) are bullish on bonds this quarter, down from 56 per cent last quarter.
Of the bond classes, global emerging markets/high-yield bonds posted the biggest change in outlook with 63 per cent of fund managers taking a neutral view (versus 14 per cent in the fourth quarter of 2009) and 38 per cent taking an overweight view, down from 71 per cent last quarter.
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