News Round Up

Global fund managers are looking to move away from equities to bonds and cash in the last quarter of the year, according to HSBC's latest Fund Managers' Survey.

While 30% of respondents maintained a positive view towards equities in the fourth quarter of 2011 from 63% in the previous quarter, half of fund managers (50%) are taking an underweight view towards equities (25% in third quarter) in the midst of continued market volatility.

A fifth of fund managers (22%) are bullish on bonds (0% in third quarter) while over half (56% vs 43% in third quarter) are taking a neutral view in the fourth quarter as investors continue to look for yield in a low interest environment.

Glen Tonks, HSBC New Zealand head of wealth, said, "With the ongoing market volatility primarily from the economic uncertainty in Europe, we're seeing a similar picture here in New Zealand as investors look to take risk off the table and move to investments that are perceived to be less risky.