Russell Investment Manager Outlook
Staying defensive
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Andrew Pease comments on key points of note from the June Russell Australian Investment Manager Outlook in the following press release. |
The June 2008 survey confirms the continuing defensive position of Australian investment managers. 50% of managers who responded to the survey expressed a preference for cash, falling slightly from 60% last quarter but still exceeding all other asset classes. This trend is also reflected in strengthening sentiment towards Australian bonds, the strongest in the survey’s thirteen-quarter history.
The June survey saw a large shift in valuation sentiment for the Australian share market. The survey found that the proportion of managers who judge the market as fairly valued rose to its highest ever level of 58%. Only 16% of managers view the market as undervalued – a large drop from the 37% of managers agreeing with this statement in the previous quarter.
This quarter managers were asked for their opinion on whether the ASX200 low of 5086 on 18 March would remain the share market low for 2008. Two in three managers agreed this was correct, believing the worst weather is behind us.