Skandia Investment Group (SIG) has announced it has further increased its exposure to equities.
Chief Investment Officer (CIO), James Millard, says global equities and non-government bonds have both had a strong start to the year as global economic data improved, while further signs of stability within the eurozone have raised hopes that the debt crisis will be contained. He adds that business confidence surveys have risen in most countries suggesting that the global economy has started to pick up.
Skandia has a marked preference for emerging markets. "Our preferred emerging markets remain in emerging Asia, where we continue to think that China will achieve a soft landing. In the developed world we slightly increased our exposure to Europe ex-UK because of favourable valuations and our expectation of a further stabilisation in the debt crisis.
"In the eurozone, the composite PMI rose back above the 50 break-even level suggesting that the economy could expand in the current quarter after a likely fall at the end of last year. Similar surveys across many parts of the world (such as in India and China) also rose suggesting these economies should achieve a soft landing.
"We remain very positive on the outlook for equity markets and increased the size of our overweight position slightly.”
Millard acknowledges that Skandia does remain more optimistic than consensus on the outlook for both the global economy and global financial markets. “Investors remain heavily underweight eurozone equities and overweight US equities, while we are positioned the other way."
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