New Delhi, April 17: Global fund managers are investing in China and other emerging markets rather than in Europe or Japan to cash in on the improving global economic sentiment, a Merrill Lynch survey said.
According to the Merrill Lynch Survey of Fund Managers for
April, the global economic optimism is at the highest level
since 2004 and investor risk appetite has started to pick up
on the back of improving global economic sentiment.
As much as 26 per cent of the fund managers said the
global economy would strengthen in the next 12 months, up
sharply from negative 24 per cent in January.
Interestingly, China continues to be a beacon of hope for
the global economy with portfolio managers more optimistic on
Chinese growth than any point since 2003, the report stated.
"Investors looking to play the global recovery are using
China and emerging markets, rather than Europe or Japan, to do
so," Banc of America Securities-Merrill Lynch Research co-head
international investment strategy Michael Hartnett said.
A net 26 per cent of respondents believe Chinese economic
growth would accelerate over the next 12 months, while till
November about 85 per cent expected it to decelerate.
Global emerging markets have been prime beneficiary of
improving sentiment towards equities due to China`s influence,
which is indicated in a heavy increase by portfolio managers
in exposure to emerging markets to 26 per cent from 4 per cent
previously.
Bureau Report
