Global fund managers have recovered some of their appetite for risky assets this quarter, as more than 50 percent indicated plans to increase stock holdings and adopt a neutral view on cash, a recent survey by HSBC PLC showed.
Forty percent of fund managers voiced their willingness to increase stock holdings this quarter, compared with 25 percent last quarter, suggesting a rebound in risk appetite, according to the quarterly survey that aims to track global fund flows.
“The survey results indicate a notable improvement in sentiment among global fund managers as concerns over the eurozone’s [possible] collapse subside,” said Steve Chuang (莊懷德), senior vice president of wealth management at HSBC Taiwan.
Consequently, fund managers have started to search for undervalued stocks in markets worldwide, Chuang said.
Half of the fund managers surveyed plan to be overweight in Greater China equities this quarter, which is 43 percent more than three months earlier, while 40 percent are positive about Asia-Pacific markets — excluding Japan — an increase of 15 percent from the preceding quarter, the survey found.
Still more fund managers, 70 percent, aim to up stakes in North America stocks as economies in the region have proved relatively stable, the survey said.
Meanwhile, an increased number of respondents, 30 percent, indicated plans to trim bond portfolios because hedging needs have pushed their prices too high, the survey said.
Only 10 percent of the respondents intend to add debt holdings, while the remaining 60 percent opted to take a neutral stance on bonds.
The survey lent support to markets with growth potential, Chuang said.