Survey shows Brazil in sixth place in preference of global managers
Valor Econômico
Global investors have started seeing the investments made in emerging markets as a good opportunity again. Past the worst moment of aversion to risk on account of the concerns with the high indebtedness of Europe, the developing countries have resumed the confidence of the investors. That is what reveals the BofA Merrill Lynch survey with fund managers worldwide. In total, 207 executives of the area, who manage US$ 606 billion, took part in the survey conducted between June 4 and 10.
According to the survey, 31% of the investors polled have "overweight" positions in relation to reference indexes in emerging markets. The percentage is well above the 19% registered in May. Despite the high, the levels are below those registered in 2009. In June last year, for instance, 54% of those surveyed said they were "overweight" in emerging markets.
The managers put Turkey and Russia as the most attractive emerging markets. The bet in Turkey reached the highest level since January 2009. Brazil appears in sixth place among the preferred countries. Besides the Turkish and Russian markets, Indonesia, South Africa and Thailand are ahead Brazil. Although the confidence in the emerging countries has grown, the perspective for China has worsened, dropping to its lowest level since January 2009. Of the fund managers polled, 27% expect the Chinese economy will weaken over the next 12 months; much more than the 21% registered in April. The commodities, highly correlated to the Chinese wealth, have suffered. Only 4% of the global investors maintain applications above the average in this class of asset, a 17% fall compared to last month.
The investor's belief in the global economic growth and in the ability of the corporations to improve their profits has also deteriorated significantly, according to the BofA Merrill Lynch survey. According to the survey, only 24% of those surveyed believe the world economy will strengthen over the next 12 months, a fall compared to the 42% of May and to 61% of April.