HONG KONG -- Fund managers in Asia started to creep back into stock markets in November, encouraged by the recent sharp drop in prices. For much of this year, fund managers have held higher-than-usual cash positions amid volatile market conditions. The high cash positions have also been in preparation for redemption requests from panicky investors. Managers who waded into securities have generally preferred bonds over equities, but that appears to be changing. For the first time since May this year, managers indicated they were tiptoeing into stocks. Managers said they were "slightly overweight" on equities, according to Dow Jones's monthly poll of portfolio managers active in Asia. Weightings reflect managers' portfolio composition compared to benchmark indexes. "The appetite for risk is increasing. Cash should increasingly be invested in equities," said New Star's Gregor Logan, adding that "the discount in earnings is likely to be less substantial than currently priced in."
HONG KONG -- Fund managers in Asia started to creep back into stock markets in November, encouraged by the recent sharp drop in prices.
For much of this year, fund managers have held higher-than-usual cash positions amid volatile market conditions. The high cash positions have also been in preparation for redemption requests from panicky investors. Managers who waded into securities have generally preferred bonds over equities, but that appears to be changing.
For the first time since May this year, managers indicated they were tiptoeing into stocks. Managers said they were "slightly overweight" on equities, according to Dow Jones's monthly poll of portfolio managers active in Asia. Weightings reflect managers' portfolio composition compared to benchmark indexes.
"The appetite for risk is increasing. Cash should increasingly be invested in equities," said New Star's Gregor Logan, adding that "the discount in earnings is likely to be less substantial than currently priced in."
