The European equities indicator – which is based on fund manager expectations for the FTSE World Europe ex UK Index over the next year – hit 41 this month, indicating a strongly bullish consensus on the region (see chart). This was in-line with the Bank of America Merrill Lynch Fund Manager Survey for August, which, as Expert Investor Europe reported, found eurozone equity allocations at their highest level since 2008.true
Japan and the US remained the most strongly favoured equity regions, however, as the Japan indicator rose for a second consecutive month, to 82 – just below its record high, set in April.
In contrast, sentiment on emerging market equities continued to decline, in part reflecting ongoing investor concerns surrounding the perceived threat of US “tapering”.
Indeed, expectations for the MSCI Emerging Markets, MSCI Bric and FTSE World Pacific ex Japan indices are at, or close to, all-time survey lows. The Asia Pacific ex Japan indicator fell to minus 24 this month, for example – the first such negative reading since Expert Investor Europe began its survey in January 2005.
The Expert Investor Europe Manager Sentiment Survey is based on data gathered monthly by Skandia from fund groups operating in Europe. Participants in August were: Allianz Global Investors, Axa Framlington, Barings, BlackRock, F&C, Fidelity, GLG, Henderson, HSBC, Ignis, Kames Capital, M&G, Newton, Old Mutual Global Investors, Pictet, Schroders and SWIP.
Platinum members can view full results from the latest Expert Investor Europe Manager Sentiment Survey here.