The top quartile funds in the UK-based global growth sector continue to thrive on higher US weightin...
The top quartile funds in the UK-based global growth sector continue to thrive on higher US weightings compared to the bottom quartile, according to Lipper.
That pattern has continued with the top quartile funds holding between 4% and just over 8% more in the US compared to the bottom quartile funds at the end of December 2000 and at the end of each month in 2001.
The top quartile performers increased their exposure to North America from an average of 35.9% at the beginning of January to 42.5% at the end of June, an increase of more than 6%.
On average, bottom quartile funds held 30.1% of assets in North America in January, a proportion that had risen to 34% at the end of June. There has been a general trend during June to raise exposure to the US with 61% of fund managers increasing their exposure to North America while 20% reduced it.
Over the past seven months the top quartile funds have had consistent underweightings in Europe compared to bottom quartile funds. Differences in the weightings in the UK between the top and bottom quartile funds, a traditionally defensive market, have varied much more.
In December 2000 the difference was around 4% which dropped to almost zero difference by the end of February. The difference has now increased with top quartile funds now holding on average 4% less than bottom quartile funds. The Global Growth sector was highly exposed to UK assets, on average 24% over the six months, compared to the FTSE World Index where the UK was just above 10% of the index. However, Lipper's survey shows that top quartile funds for the six months to June were underweight the UK compared with their peers by an average of nearly 5% in June.
Steve Lipper, global marketing director at Lipper, said: 'During the first half of 2001, global growth fund managers with high US exposure sector were rewarded by the relative outperformance of the US versus Europe and the UK. Recently a much higher percentage of fund managers have become optimistic about US equities.'
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