Despite recent political uncertainty, fund managers remain overweight on Taiwan equities, according to a recent poll by Dow Jones Newswires.
Fund managers say they are 16 percentage points overweight in Taiwan stocks this month, the same as last month.
They were between 12 and 20 percentage points overweight in January and February, respectively.
US bonds and Malaysia equities were the top investment recommendations from eight leading fund management firms in Asia, according to the poll. The recommendations were for the next 12 months.
In the Dow Jones' monthly survey of the eight firms, fund managers recommended an extremely overweight position in US bonds, more than doubling their weighting recommendation from a month ago.
At the same time, the fund managers recommended a heavy weighting in Malaysian shares ahead of Malaysia's return to Morgan Stanley Capital International's global indexes at the end of May.
The big loser in the survey was Singapore, where fund managers suggested going very underweight. In addition, they recommend underweight cash, after last month's survey suggested a neutral position.
Every month, Dow Jones polls eight fund management firms with large Asian operations to get their portfolio recommendations for the coming 12 months.
In Asia, Japan remains the top pick for equities, with a very overweight recommendation. Japanese bonds, however, remain unloved and should be underweighted, the survey shows.
Indocam Asset Management holds an "increasing negative view on Japanese bonds," particularly compared with appealing prices for US debt.
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