Global fund managers are seeking to shift from
equities to cash and bonds in the final quarter of the year,
according to HSBC’s latest fund managers’ survey.
The survey said the number of respondents
taking a positive view towards equities has dropped by almost half
– from 63% in Q3 2011 to 30% in Q4 2011.
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In addition, 50% of fund managers in Q4 2011
have been taking an underweight view towards equities, compared to
25% in Q3 2011 amid continued market volatility.
According to the survey, 44% of fund managers
in Q4 2011 are overweight in cash compared to 0% in previous
quarter, which reflects weaker investor sentiment as the European
debt crisis continues.
It added that 22% of fund managers in Q4 2011
are bullish on bonds, in comparison with 0% in Q3 2011, while over
half are currently taking a neutral view of the asset class as
investors continue to look for yield in a low interest
environment.
Significant shift
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By GlobalDataPaul Arrowsmith, HSBC Singapore’s head of
retail banking and wealth management, said the survey showed a
significant shift in sentiment across global fund managers as
prolonged uncertainty in Europe and poor prospects in the US
continue to hinder global economic growth.
Arrowsmith said: “The end of the quarter will
be marked by a flight to ‘safe havens’ and a more cautious view on
risky assets as investors wait for things to turn in 2012.”
