Confidence in equities builds, survey finds

Survey1Equity fund managers are more confident about markets this year compared to their fixed income counterparts.

A survey of fund managers with £2.5 trillion (€2.9 trillion) of assets under management found a “chasm” between the expectations of equity and fixed income managers, says Aviva Investors, which conducted the survey among external managers.

Aviva surveyed 57 external managers in early February.

The majority of equity managers (69%) are more confident about markets than they were at the same time last year. Equity returns beat their expectations in 2012 and the overriding view is that the main central banks have done enough to calm markets.

Even though fixed income managers generally agree with this view, only a minority share the enthusiasm of their equity peers (26%).

The Eurozone remains a major concern for investors, with 90% of fixed income and 71% of equity managers expecting continued uncertainty to affect markets negatively this year.

Peter Fitzgerald, co-head of multi-manager at Aviva Investors, says: “The survey results show clear signs of sector rotation in the global equity space.”

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