Global equity funds are not as widely used as European and US equities, but generally only a small minority of fund selectors in each country has no exposure to the asset class. In Barcelona, Zurich, Milan and, indeed Iceland all fund selectors are invested while, on the opposite end, 17% of Parisian fund selectors do not have any exposure to global equities.
Though there are more buyers than sellers and non-buyers combined in every country, the number of people increasing their allocation differs greatly. Barcelona is not only one of four out of 14 financial centres where virtually everybody uses global equities, it is also the place with most global equity bulls: some 63% of fund selectors said last month they will increase their allocation to the asset class.
This is only slightly less than the two thirds planning to step up allocation to European equities, but three times more than the percentage planning to increase exposure to US equities. In Madrid developed equity sentiment is similar to Barcelona. However, the popularity of global equities in the Spanish capital mirrors that of US stocks, rather than European equities.
In Oslo (see chart on the right), global equities are even the most popular asset class, with 53% of delegates increasing their allocation and no-one cutting exposure. In Rome, Bilbao and Lisbon, buying numbers are also close to 50%.
The use of global equity income funds is much less widespread, especially in Northern Europe. Basically, only fund selectors in Spain and Italy are enthusiastic about this type of funds. Fund buyers based in Milan are the most bullish here: close to 60% want to increase exposure.