The finding tallies with other studies, which show a strong upturn in appetite for the asset class among fund managers and end investors.
As Expert Investor Europe reported, last month’s Bank of America Merrill Lynch Fund Manager (BofA ML) Survey revealed that almost half of global asset allocators were overweight eurozone stocks – the highest reading since 2007.
Meanwhile, data from Morningstar shows end investors are responding to the bullishness of fund managers. The firm’s Europe Large-Cap Blend Equity sector was the top-selling fund category in the third quarter, with inflows of €5bn.true
US expectations slide
The rising appetite of fund managers for European stocks contrasts with their diminishing enthusiasm for US equities.
BofA ML found that the share of asset allocators overweight the US fell from almost one-third to zero between August and October, owing in part to fears surrounding the protracted “debt ceiling” negotiations in Washington.
The shift is mirrored in our sentiment survey, with the US equity reading declining from 67 in July – an all-time poll high – to just 30 in October.
Platinum members can view the latest Expert Investor Europe 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 October were: Allianz Global Investors, Aviva Investors, Axa Framlington, Barings, BlackRock, F&C, Fidelity, GLG, Henderson, HSBC, Ignis, JP Morgan, Kames Capital, M&G, Newton, Old Mutual Global Investors, Pictet, Schroders, SWIP and Threadneedle.