POWERED BY MOMENTUM MEDIA
Fund managers exercise caution in fourth quarter
Global fund managers are treading carefully in the fourth quarter of 2011, with half of the managers surveyed by HSBC underweight equities.
HSBC analysed 13 of the world's leading investment houses in its quarterly Fund Manager's Survey, based on funds under management (FUM), asset allocation and global money flows.
A key finding of the survey was that 44 per cent of fund managers were overweight cash in October and November 2011. By comparison, no global fund managers surveyed were overweight cash in the third quarter of 2011.
HSBC Australia head of global investments Geoffrey Pidgeon said the "prolonged uncertainty in Europe and insipid US prospects" would continue to hamper global economic growth.
"The end of the quarter will be marked by a flight to 'safe havens' and a more cautious view on more risky assets as investors wait for things to turn in 2012," Pidgeon said.
The survey revealed that fund managers were eyeing selective growth opportunities, with almost half of investors remaining bullish on Chinese equities (44 per cent) and US equities (45 per cent).
"With expectations of less stringent monetary policies in China, investors are staying positive on Greater China equities … on the back of still-resilient corporate earnings and relatively undemanding valuations, the US equities market could also offer potential gains," Pidgeon said.
The key to riding out the sovereign debt crisis and the sentiment-driven, unpredictable markets it creates is to stay diversified and take a long-term view, Pidgeon said.
Recommended for you
The two funds have announced the signing of a non-binding MOU to explore a potential merger.
The board must shift its focus from managing inflation to stimulating the economy with the trimmed mean inflation figure edging closer to the 2.5 per cent target, economists have said.
ASIC chair Joe Longo says superannuation trustees must do more to protect members from misconduct and high-risk schemes.
Super fund mergers are rising, but poor planning during successor fund transfers has left members and employers exposed to serious risks.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
88.01 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
72.60 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
44.46 3 y p.a(%)
4
Pengana High Conviction Equities B
39.12 3 y p.a(%)
5
Pengana High Conviction Equities A
39.05 3 y p.a(%)
