While half of the 18 asset management companies answering the survey, which is conducted by Skandia, expect emerging markets equities to return more than 5% in the coming twelve months, another six wealth managers expect losses of more than 5% for the asset class. Only three of them take a neutral view, the lowest number ever since records began in 2004.
Split with fund selectors
Asset managers seem to take a considerably more conservative stance when it comes to their macro outlook than fund selectors. While the latter have recently become much more enthusiastic about emerging markets equities, asset managers stick to their convictions and keep faith in developed market equities.
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Be it European equities, US stocks or Japanese equities: a large majority of asset managers expect returns of more than 5% for the coming 12 months. The difference with fund selector sentiment is striking: while many fund selectors are still looking to increase their weighting to European equities, they are net bearish on both US and Japanese equities.
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