Emerging market and European equities find favour over bonds

Fund managers are favouring equities over bonds, particularly emerging markets and Europe. In its asset allocation 'game plan', F&C revealed it is overweight equities and underweight bonds. In equities, it is overweight continental Europe, emerging markets, US and Japan, neutral the UK and global real estate securities and underweight Asia Pacific. Toby Vaughan, fund manager in the F&C asset allocation team, says its main positions are in emerging markets and Europe, and while it remains overweight Japan, it has recently reduced its position there. He says earnings growth in emerging ...