ABN AMRO Private Banking has revealed potential in industrial equities and has advised clients to position themselves for a gradual manufacturing recovery.

Date: Mar 23, 2012

Tags: ABN AMRO, Equities, Fixed income, Asset allocation

ABN AMRO Private Banking has revealed potential in industrial equities and has advised clients to position themselves for a gradual manufacturing recovery.

In its latest Investment Outlook, “Building confidence”, industrials join the bank’s list of preferred equity sectors as it increases its overall European equities position to neutral by taking profits on its US equities allocation.

In Asia, the bank is moving Asian corporate bonds to overweight, and it favours China, Indonesia and Malaysia.

Yet, the bank retains an overall underweight allocation towards fixed income due to low government bond yields.

Carman Wong, the bank’s head of emerging market bonds, believes Asian corporate bonds offer value relative to developed market peers, and identifies 39 credits spanning industry sectors.

"In addition to macro-economic positives, we expect Asian corporate bonds will attract large flows due to demand for saving instruments in Asia and effective diversification for foreign investors,” she said.