The latest EIE Market Insight report – based on face-to-face interviews with Stockholm pension funds, banks, wealth managers and insurers – finds that two-thirds of the city’s investors plan to bolster their Asia equity allocations, up from just two-fifths in February last year.
This surge comes despite widespread fears over the impact of tighter western central bank policy on emerging markets.
For example, the latest Bank of America Merrill Lynch Fund Manager Survey revealed a sharp drop in confidence on China’s economy, as well as growing certainty among professional investors that a Chinese “hard landing” was the biggest macroeconomic tail risk.
Swedes view this downbeat consensus as an opportunity to increase their Asia equity exposure, however – given their bullishness on China’s long-term outlook.
Interviewees are enthused by the country’s reform programme announced last November, which included a relaxation of its one-child-per-couple policy and measures designed to make assets more accessible to foreign investors.
Platinum members can read the full Market Insight report here.
If you are a fund selector and would like to attend the Expert Investor Nordic event on 11 February, please contact Simon Andersson by email or on +44 20 7382 4477.
