Sharechat Logo

Managers bearish on NZ

Tuesday 10th July 2007

Text too small?
Investment professionals may have remained perky over global economic prospects, but they are feeling downright gloomy about things at home.

Funds managers were bearish on most New Zealand asset classes in June, compared with how they felt three months earlier says David Iverson, head of consulting Russell Investment Group in New Zealand.

The findings come from Russell's quarterly survey of fund managers throughout the world.

In New Zealand's latest qualitative results Iverson said the eight funds managers surveyed believed New Zealand's equity market was overvalued and 38% felt the outlook was weak over the coming 12 months.

However, some thought the introduction of KiwiSaver and increased corporate activity could prevent further declines.

On cash, while bearish compared with March, 50% of managers still saw some upside and thought the kiwi would weaken despite continued low employment and the Reserve Bank's tightening bias.

Fully hedging offshore exposure had been a positive contributor to many funds' performance, Iverson says.

Not one fund manager was bullish about fixed income. The domestic bonds market had been made difficult too by a continued inverted yield curve and lack of liquidity.

Property also got a pounding with managers pointing to increasing interest rates starting to have an impact on the domestic sector.

Managers were also bearish on listed property trusts (50% bearish and 25% bullish).

"Overall the June survey results show a bearish outlook on the part of funds managers," Iverson says. "While they remained bullish on prospects for the global economy, this survey was done prior to the recent sell-off in global equity markets and concerns regarding the US sub-prime mortgage markets."

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

KMD - 1H FY2024 Interim Results
SCT - Resignation of Chief Executive Officer
March 19th Morning Report
SKC - APPOINTMENT OF CHIEF INFORMATION OFFICER
NWF - Chief Executive Officer Warren Koia Resignation
March 18th Morning Report
Pacific Edge Directors Give Notice of Retirement
Meridian Energy monthly operating report for February 2024
Another unworkable farming rule bites the dust
March 14th Morning Report