12/29/2008

UK fund managers in December for the second consecutive month of increase in the proportion of shares held by

Investigation revealed that UK-based fund manager for the second consecutive month in December to increase the proportion of shareholders, the reduction of debt and cash positions, as a result of a further decline in interest rates, the market found some support.

9 of the British investment company survey showed that in December they hold stock average proportion rose to 63.0 percent, in November when the survey of 11 investment companies accounting for 61.0 percent share.

The average bond holders increased from 24.6% down to 22.7 percent, the proportion of cash fell to 7.7 percent from 7.5 percent.

Fund positions imply changes in the proportion of investor risk appetite recovery, thanks to the Government's intervention measures and a series of initiatives to cut interest rates, the market has become more stable.

Bank of England rate cut in December to 2%, the lowest since the 1950s level.

Britain in December to the fund's investment in the stock market, the United States market share of 38% to 23.6% in the euro zone, the European Union outside the euro area to 14.7 percent, Japan 10% of the market, the Asian market outside Japan to 8.7 percent, to Latin America 2.1%.

Standard Life Investments head of global strategy Andrew Milligan said: "The recovery in financial markets poses a number of components needed to put in place gradually. Asset classes there are a lot of great value, such as the bond market, stock market, and even some of the real estate business."

"In the New Year at the dawn of the view that we remain cautious as a result of taking into account the depth of the recession on corporate profits, debt default, foreclosure and bankruptcy, and whether the market price to completely absorb all the bad news there is doubt."

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