Despite the strong performance in U.S. equities since the fall of 2011, the majority of the managers surveyed believe U.S. equities remain attractively valued. Emerging markets are also viewed as attractively priced with more than 60 percent of managers seeing upside in emerging markets. Other areas of opportunity include investments in the technology and energy sectors. The outlook remains weak for fixed income investments as well as the utilities and telecom sectors.Northern Trust’s Multi-Managers Solutions group is the manager of managers business of Northern Trust Corp. Respondents, all of whom participate in Northern Trust’s external manager platform, were polled in mid-March. Other key findings from the first quarter survey include:
- Nearly half of managers surveyed (49 percent) believe job growth will remain stable over the next two quarters, with a third anticipating an acceleration in job growth over that period.
- Managers were most bullish on U.S. large cap equities, U.S. small cap equities and emerging markets, unchanged from the fourth quarter. They were most bearish on fixed income securities such as U.S. Treasuries, investment grade bonds and non-U.S. bonds.
- Managers identified technology and energy as the sectors that they are most bullish on in the short-term, while they are bearish on utilities and telecom. The outlook for the financial sector improved notably in the first quarter.
Northern Trust Global Investments (NTGI) is the multi-asset class investment management business of Northern Trust Corporation. NTGI comprises Northern Trust Investments, Inc., Northern Trust Global Investments Limited, Northern Trust Global Investments Japan, K.K., the investment advisor division of The Northern Trust Company and The Northern Trust Company of Connecticut and its subsidiaries.About Northern Trust Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of investment management, asset and fund administration, banking solutions and fiduciary services for corporations, institutions and affluent individuals worldwide. Northern Trust, a financial holding company based in Chicago, has offices in 18 U.S. states and 16 international locations in North America, Europe, the Middle East and the Asia-Pacific region. As of December 31, 2011, Northern Trust had assets under custody of US$4.3 trillion, and assets under investment management of US$662.9 billion. For 120 years, Northern Trust has earned distinction as an industry leader in combining exceptional service and expertise with innovative products and technology. For more information, visit www.northerntrust.com.