Where are the Super Allocators on the main asset classes?


Investment managers at major European private banks remain positive on equities, underweight on bonds and are divided on prospects for alternatives

Citywire selector heatmap describes the current asset allocation calls from CIOs and key decision makers at 30 European private banks as part of our quarterly outlook.

In the latest report, which covers views from the start of Q3, there is a wide range of answers regarding what works and what doesn’t in core allocations.

As the chart below shows, most respondents are overweight equities, while six investment leaders maintain a neutral position. Meanwhile, none of those interviewed said they were underweight.

(Click on the graphics to zoom)

Within the equities space, the appeal of US equities has weakened, with only six CIOs remaining overweight, compared to 12 in the last quarter. The number of underweight views increased from four to nine.

European, global and emerging equities remain overweight compared to the previous quarter.

Major CIOs are consistently underweight fixed income, with only three remaining neutral.

At the sector level, emerging debt was viewed positively, both by sovereigns and companies, in line with the previous quarter.

The outlook for high yield and corporate bonds was almost evenly split between overweight and neutral. Bonds in developed markets remain in disgrace.

Compared to the start of the year, CIOs continue to have mixed views on alternatives, with roughly an equal number of overweight and neutral positions. A single CIO is underweight the asset class.

Commodities remain the most popular exposure in the alternative space, while hedge funds have moved from a majority overweight to a majority weight compared to the first months of 2021.

To view the latest report in its entirety and dig deeper into asset class specific heat maps, please click here.

To see how CIOs were positioned at the start of Q2, please follow the link here.


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