Step aside China, asset managers believe smaller Asian economies will lead global growth this year.
According to an RBC Capital Markets survey published Monday, 73% of executives say Hong Kong, Singapore and South Korea have better prospects for growth than China, India and Russia.
ěEmerging markets have led global growth for the past several years, and asset managers around the world believe they will continue to do so,î commented Marc Harris, co-head global research at RBC. "However, it is quite surprising that asset managers see smaller Asian economies surpassing China and India in terms of growth prospects."
He went on to say the emerging markets are more diversified than ever, and investors are delving into "intra-regional" differences in search of the highest yield.
The survey polled 461 senior corporate and finance executives worldwide, including 108 asset managers.
Asset managers continue to be optimistic about Asia’s equity markets, with 69% betting on a rally sometime in the next year.
Still, some managers view the U.S. less favourably, with 54% expecting gains in the next year compared with 66% in the previous survey.
Richard Talbot, co-head global research at RBC, said asset managers and investors should adopt a more "nuanced" approach to investing in the future.