The Chief Investment Officers (CIOs) of major European private banks are overwhelmingly positive about equities, almost completely overwhelmed by bonds, and offer a very mixed view on what works and what doesn’t in the world of alternatives.
Citywire selectorS heat map presents the current thinking of CIOs and key decision makers at 30 European private banks as part of our quarterly outlook, Top 30 Super Allocators.
In the last report, which covers the views from the start of the second quarter, there was a wide range of responses on what works and what doesn’t in core allocations.
In equities, as the graph below shows, the majority of respondents are currently overweighted, while around four take a neutral stance. It was then that none of the survey participants declared themselves to be underweight. Among the most popular were American, European and global allocations.
The story is almost completely reversed with fixed income, as only four of the respondents said they are currently neutral and the rest are underweight.
At the sector level, high yield debt and emerging market debt were viewed positively, while developed markets were not popular.
Meanwhile, in terms of alternatives, opinions were divided, with around a third overweight, while the majority take a neutral stance and a small proportion are underweight. The most popular areas of exposure are hedge funds, while real estate has the most CIOs expressing a neutral or underweight opinion.
To view the full report and delve deeper into asset class specific heat maps, please click here.