A growing number of fund managers are regaining their confidence in global equities and in the growth of the global economy, specifically in China. The positive sentiment has helped improve the economic outlook across the region and eased concerns over the Eurozone debt crisis.
These findings are based on a survey of fund managers, conducted by Bank of America (BofA) Merrill Lynch in February. The survey revealed that 11 percent of the fund managers polled expect positive economic growth next year. The figure is a significant increase from the 27 percent forecasted last December.
Responses from 277 panellists revealed that net 32 percent expect positive liquidity in the market, countering the net seven percent that believed otherwise last month. This also marks the largest month-on-month improvement since October, when the survey was first conducted.
Such sentiment was reflected in fund managers’ sentiments regarding emerging market equities, where there has been a notable rise in healthy risk appetite.
Global asset allocators have doubled their overweight in emerging market equities in the past month, from 20 percent in January to 44 percent this month.
Moreover, 86 percent of the respondents believe that China’s economy will land soft.
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