KUALA LUMPUR: Global fund management firms were upbeat
on the investment outlook for the first half of 2013 (1H13), said OCBC Bank's Fund Poll.

In a report today, the bank said among the supportive key indicators to support the bullish outlook were: macro backdrop was still suportive; Asia, excluding Japan and emerging markets, remained the most favourite regional equity markets; positive outlook for US dollar; and, gold to retain its shine.

The bank said the results were derived from a poll of 13 fund management companies carried out by its Wealth Management Unit in Singapore.

They are: Aberdeen Asset Management, Allianz Global Investors Singapore, Amundi Asset Management, BlackRock Inc, BNP Paribas Investment Partners, Deutsche Asset Management, Eastspring Investments, Fidelity Worldwide Investment, First State Investments, Henderson Global Investors, ING Investment
Management, Lion Global Investors and Schroder Investment Management.

Trevor Greetham, Head (Asset Allocation) of Fidelity Worldwide Investment, expected global growth picking up in 2013, which should benefit equities.

"The recent improvements in US and Chinese economic data as well as global central banks' continued monetary policy easing as supportive factors," he said.

OCBC Bank said Asia (excluding Japan and the emerging markets), inclusive Malaysia, remained the most favoured regional equity markets among the fund managers.

Close to 54 per cent of those quizzed chose Asia (ex-Japan) as their preferred region while over 46 per cent chose emerging markets, making it a close second choice, it said.

Aberdeen Asset Management said with favourable demographics and an expanding middle class, against the fiscal issues in the West, emerging markets could remain well supported in early 2013.

It said robust government and household balance sheets, as well as Asian companies' strong finances and adoption of global best practices, were likely to benefit Asia equities in 2013.

On foreign exchange, OCBC Bank said 46 per cent of the fund managers surveyed believed that the greenback was likely to strengthen against other majors in the 1H13 on the back of an improving US economy and the slowdown in other developed economies.

However, over 33 per cent were uncertain about the US dollar's outlook while 77 per cent expect Asian currencies to appreciate against the US dollar, it said.

It said strong liquidity continued to flow into the region's equity and bond markets, and Asian central banks were likely to accommodate currency appreciation.

For gold, nearly 70 per cent indicated that gold was likely to do well in the period reviewed with the yellow metal's price expected to reach approximately US$1,850 per ounce by mid-2013, it said.

The report also showed that some 77 per cent of fund managers saw the euro-zone crisis as a key risk for markets in 2013. -- BERNAMA