Fund managers favour cash, Asia-Pacific equities: HSBC
By Huraizah Ahmad

A survey by HSBC of the bank's panel of 10 global fund management houses revealed a significant shirt in sentiment among fund managers in favour of cash over equities and bond investment sectors in the first quarter of 2008.

Sixty-two per cent of the fund managers surveyed said they held an overweight view towards cash. This compared with just 25 per cent of the sample holding the same view in the fourth quarter of last year. Fund managers turned bearish towards equities over the same period as 38 per cent took an underweight view of this investment sector. This compares with no respondent in the sample holding an underweight view towards equities in the fourth quarter of 2007.

Within the equities sector, fund managers in the sample were unanimous with 100 per cent citing an overweight view towards Asia-Pacific ex Japan equities.

The next most popular sector, within equity investments by geography, was Greater China at 75 per cent with an overweight view.

Regarding bond investments, half of the sample remained underweight in the first quarter of 2008, compared to 62 per cent in the fourth quarter of 2007 and 37 per cent were neutral in the first quarter of this year versus a 25-per cent in the final quarter of last year.

Courtesy of Borneo Bulletin