At the same time none will decrease their allocation, mirroring Europe-wide sentiment towards the asset class. Moreover, there even is double Dutch enthusiasm for emerging market stocks. Whereas in most European countries investors have only just started to re-engage with the asset class, coming from an underweight position, many fund selectors in The Netherlands already have overweight positions.
This implies that, although net sentiment is slightly less upbeat than the European average, Dutch fund selectors are actually more heavily invested in emerging market stocks than most of their European counterparts.
Emerging market equity sentiment in the country had reached its highest level in almost three years in June, and has held up well since. Only one fund selector explicitly voiced worries about China, where the real estate market shows signs of imminent collapse.
All-in or nothing at all
We discovered that there is quite a cleavage on the Dutch market with regard to frontier markets. While two thirds of interviewees are not even invested in the asset class, those who do all have strong overweights to the asset class, mirroring the Dutch allocations to emerging market equities. One of the frontier market bulls even said that almost 3% of total assets under management of his company, a private wealth manager, is invested in frontier market equities at the moment.