ANNOUNCEMENT: Expert Investor is now PA Europe. Read more.

Asset managers divided about EM equity prospects

Global asset management companies have never before been as divided on return prospects in emerging markets as they are now.

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.                                                                  

alt=''{^image|(width)250|(height)144|(url)/getattachment/Profiles-and-Commentary/EIE-analysis/Asset-managers-divided-about-EM-equity-prospects/paneuro_emeq-(2).png.aspx?width=250&height=144|(originalwidth)927|(mouseoverheight)345|(hspace)10|(behavior)hover|(originalheight)534|(sizetourl)True|(alt)paneuro_emeq-(2).png|(mouseoverwidth)600|(vspace)10|(tooltip)paneuro_emeq-(2).png^}

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.

alt=''{^image|(width)250|(height)127|(url)/getattachment/Profiles-and-Commentary/EIE-analysis/Asset-managers-divided-about-EM-equity-prospects/paneuro_useq-(1).png.aspx?width=250&height=127|(originalwidth)917|(mouseoverheight)304|(hspace)10|(behavior)hover|(originalheight)466|(sizetourl)True|(alt)paneuro_useq-(1).png|(mouseoverwidth)600|(vspace)10|(tooltip)paneuro_useq-(1).png^}

Platinum members can view the latest EIE Manager Sentiment Survey here.

The Expert Investor Europe Manager Sentiment Survey is based on data gathered monthly by Skandia from fund groups operating in Europe. Participants in January were: Allianz Global Investors, Aviva Investors, Barings, BlackRock, F&C, Fidelity, Henderson, HSBC, Invesco Perpetual, Investec, JP Morgan, M&G, Newton, Old Mutual Global Investors, Pictet, Schroders, SWIP and Threadneedle.

MORE ARTICLES ON

  • Can M&A and buybacks breathe life into UK market?

    Can M&A and buybacks breathe life into UK market?

    Both buybacks and M&A should help realise value in UK shares, boosting prices and giving investors another reason to consider the UK stockmarket Not only does M&A activity appear to be picking up, with a high-profile bid for UK electronics retailer Currys, but the scale of company buybacks continues to accelerate. If it goes well,…

  • Capital Group launches multi-thematic Article 8 funds

    Capital Group launches multi-thematic Article 8 funds

    Capital Group has launched a set of multi-thematic sustainable funds that are available for investors in Europe, writes Christian Mayes. The Capital Group Sustainable Global Opportunities fund (LUX) will invest in global equities, while the Capital Group Sustainable Global Corporate Bond fund (LUX) will target fixed income exposure. The launch also includes a multi-asset offering…

  • Bond funds pull in €29.7bn in January – LSEG

    Bond funds pull in €29.7bn in January – LSEG

    Bond products were the best-selling asset class in January, according to LSEG Lipper’s European Fund Flow report, writes Christian Mayes. The asset class pulled in a net €29.7bn in the month, while Money Market USD grouping was the best-selling Lipper Classification after receiving €11.2bn inflows. Providers of mutual funds pulled in €22.5bn, while passives saw net…

  • Quarter of Article 8 funds at risk of greenwashing – MainStreet Partners

    Quarter of Article 8 funds at risk of greenwashing – MainStreet Partners

    A quarter of all Article 8 funds could be accused of greenwashing based on their sustainability framework and practices, according to MainStreet Partners, writes Christian Mayes The 24% of funds classified as a greenwashing risk by the 2024 ESG Barometer report marks a four percentage point increase from the 20% flagged at the end of…

  • EU green rules could stymie decarbonisation projects – ExxonMobil

    EU green rules could stymie decarbonisation projects – ExxonMobil

    The European Union’s climate regulations may lead to it halting its investments in Europe, ExxonMobil has warned. Speaking to the Financial Times, Karen McKee, president of the product solutions division, said the oil and gas giant had struggled to begin decarbonisation projects in Europe due to the regulatory burden. The result, she added, was that…

  • ICE flags need for Europe to double green investment

    ICE flags need for Europe to double green investment

    Investments to modernise energy and transport must double by the end of the decade to reach 2030 climate targets, the EU has been warned. According to the Institute for Climate Economics (ICE), which has released the European Climate Investment Deficit report, the bloc lacks what it calls a “consistent tool” to ensure monitoring of the…