Our Japan sentiment indicator hit 89 in January (see chart) – the highest such reading since Expert Investor Europe began compiling poll data in 2005, and indicative of near-unanimity among asset allocators that the FTSE All World Japan Index will rise by at least 5% during the next year.
Elsewhere in the survey, fund managers remained strongly bullish on Europe ex UK equities, with a sentiment reading of 50, and neutral on emerging market and US stocks.
Positive sentiment on Japan was similarly apparent in last month’s Bank of America (BofA) Merrill Lynch Fund Manager Survey, which found that 12% of asset allocators would like to overweight Japanese equities on a 12-month time-frame.
However, respondents were most enthused by perceived opportunities in Europe. Indeed, more than a third of fund managers selected Europe as the region they would most like to overweight – the second-highest such reading since the BofA Merrill Lynch survey began.
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.