Equity fund managers see bottom in equities

Talk about talking one’s book. This is the latest press release from Standard & Poor’s Fund Services unit:

London, 27 May, 2009 – The US equity market has bottomed out, according to a number of fund managers interviewed by Standard & Poor’s Fund Services for its latest sector update, available at www.funds.standardandpoors.com.

“The teams at two S&P A rated funds, DWS Invest US Equities and WP Stewart Holdings Fund, both believe that the market will be higher in a year’s time,” said S&P Fund Services lead analyst Alison Cratchley. However, she said they expected volatility to continue, making good stock selection essential, as the market becomes more driven by fundamentals.

Of course, let’s not forget this last bit of funds research from S&P’s Index Services division…

New York, April 20, 2009- Standard & Poor’s Index Services released today the year-end 2008 results for its Standard & Poor’s Index Versus Active Fund Scorecard (SPIVA). Over the five year market cycle from 2004 to 2008, the SPIVA scorecard shows that the S&P 500 outperformed 71.9% of actively managed large cap funds, the S&P MidCap 400 outperformed 75.9% of mid cap funds, and the S&P SmallCap 600 outperformed 85.5% of small cap funds. These results are similar to that of the previous five year cycle from 1999 to 2003.


For those who nevertheless care about what the two funds mentioned in the first S&P release are doing (momentum traders, perhaps), we’re told that DWS has already moved into a “fully invested position”, with technology, consumer discretionary, energy and materials as its preferred sectors. At WP Stewart meanwhile, the fund is concentrating on “high quality, growing businesses” to offer nil earnings growth for 2009 against an anticipated 20 per cent decline in the market.

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