Global fund managers surveyed by consulting firm Watson Wyatt are optimistic that markets in many regions will begin to recover later this year.
The Watson Wyatt survey polled fund managers who collectively manage more than US$10 trillion in assets. Among the findings, published in New Straits Times, indicate that fund managers see a long recovery ahead, with some markets, namely public equities, investment grade bonds, high yield bonds and emerging markets picking up sooner than hedge funds, government bonds and real estate. Their outlook was generally neutral on private equity and currencies.
No surprise that they expect to see their institutional clients opting for more conservative strategies and greater risk management. Managers also stated that the influence of hedge funds and investment banks will taper, while pension funds and sovereign wealth will grow in stature.