Twelve global fund managers turned less optimistic about markets in the Asia-Pacific region, excluding Japan, for the third quarter of this year after having muscled an estimated US$50 billion outflow in equity funds away from Asian markets in the previous quarter, an HSBC survey showed yesterday.
“The capital outflow during the second quarter was a warning sign to show investors’ concerns over the rising inflation and economic slowdown in Asia,” a bank statement quoted Bruno Lee (李錦榮), head of the bank’s wealth management section, as saying.
The US$50 billion outflow in the second quarter represented 20 percent of total equity fund investments in the region, compared to the first quarter’s 6 percent capital inflow, HSBC said.
Net capital outflow at the region’s 12 fund managers, however, totaled US$28.5 billion in the second quarter after a US$50 billion outflow of equity funds was offset by an injection of US$15 billion and US$11 billion respectively into the region’s balanced funds and currency funds, the survey showed.
The 12 fund companies, surveyed by HSBC, manage a total of US$4.2 trillion, or 17 percent of assets under management globally, and include AllianceBernstein LP, Allianz Dresdner Asset Management AG and Bring Asset Management Ltd.
The survey showed that 44 percent of managers said they planned to undercut their investments in the region’s stock markets in the third quarter, up from 10 percent in the second quarter, while another 33 percent held a neutral view and the remaining 22 percent was optimistic and planned to increase investments.
Most fund managers were instead turning to cash and bonds.
Some 44 percent of managers said they would increase their holdings in bonds in the third quarter, up from 20 percent in the second quarter, while none would decrease their bond holdings, down from 50 percent in the second quarter, the survey said.
Most fund managers, however, remained optimistic about assets in the greater China market and global emerging markets, the survey showed.
Though fund managers’ concerns over the region’s rising consumer prices and economic slowdown would continue in the short run, Lee said Asian markets would strengthen and continue to be a solid investment destination.
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