GLOBAL - Some 73% of fund managers say that country factors are becoming increasingly important when analysing eurozone bonds following recent breaches of the European Commission's stability and growth pact.
The corresponding number for equities was 63%.
The EC has expressed concern in recent times over the timescale and commitment to the pact from countries including France, Portugal and Germany.
The findings mark a reversal of the trend towards managing eurozone funds on a sectoral basis.
“Although sectors remain important, the balance has to some extent shifted back in the other direction,” said Niklas Tell, editor in chief, Morningstar Europe.
About 66% of managers also believe that British entry into the euro would prove positive for European investment. The UK Treasury is due to announce the results of it ‘five tests’ on British membership in the next few weeks.
Other findings included:
- Most managers believed that the single most important theme in global stockmarkets over the next year was either related to economic recovery and growth or corporate profitability.
- Asia (ex-Japan) seems to be losing its edge as the best performing market over the next 12 months, dipping in popularity from 40% to 29%. Conversely, support for Latin America has increased from 5% to 14%.
- Financials was again the most preferred sector, with utilities, energy and consumer goods the least favourable.
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