SINGAPORE - 43 per cent of fund managers polled by OCBC Bank said they were negative on the outlook for equity markets compared to six months ago, citing the Eurozone sovereign debt crisis and a slowdown in China's economy as key concerns.
OCBC said in a report that only a handful of fund managers believe that the US may launch a third round of quantitative easing soon to rev up the slowing US economic recovery.
The Eurozone debt crisis is also a key concern among fund managers.
While more than 80 per cent do not see the euro region disintegrating, 44 per cent of respondents saw the debt contagion spreading to the Eurozone periphery.
Among regional equity markets, Asia ex-Japan is the most loved, garnering 38 per cent of the votes from fund managers, while 29 per cent of them voted for the Emerging Markets.
Among Asia ex-Japan equity markets, China emerged as the favourite, while Thailand came in second.
On fixed income assets, Asian and Emerging Market bonds are top choices of fund managers.
More than half of the fund managers surveyed see the US dollar rising against other major currencies in the second-half of this year, whereas half of respondents are undecided if Asian currencies will strengthen against the greenback.
Commodities are fast losing favour among fund managers.
Only 19 per cent of fund managers said they were positive on the sector, while the rest hold either a neutral or negative view.
Close to 50 per cent of the managers polled named the Eurozone sovereign debt crisis as the most important risk factor to look out for in the second-half of this year.
Of the 16 fund managers polled, more than a third chose equities as their most preferred asset class.
The poll surveyed a total of 16 local and international fund management companies on the investment outlook and opportunities for the second half of 2012.