WRAPUP 1-Investors keep faith with stocks, cut euro zone bonds

* Poll shows global investors raised equity exposure in Nov.

* Division over eurozone bonds

* UK, U.S, investors cut euro zone debt, others raise

(Fixes typo in first paragraph)

By Jeremy Gaunt, European Investment Correspondent

LONDON, Nov 30 (BestGrowthStock) – Global investors increased their
exposure to equities in November despite weaknesses on many
bourses, while U.S. and British fund managers stepped away from
crisis-hit euro zone bonds.

Surveys of 55 leading fund management houses in the United
States, Japan, Britain and Europe ex UK showed a continuing
desire to invest in stocks heading towards year-end.

This was despite the fact that world stocks as measured by
MSCI (.MIWD00000PUS: ) have fallen close to 6 percent from a high
early in the month.

A good part of the reason for that decline was worry about
euro zone government bonds, epitomised by fears that Ireland,
now the recipient of a bail out, would not be able to meet its
debt obligations and that the rot would spread to others such as
Portugal and Spain.

The poll showed investors were divided over euro zone debt
with the so-called Anglo-Saxons, Britain and the United States,
cutting their exposure sharply, but others increasing.

Eurosceptic Britain was the most negative, slicing the
average exposure to euro zone debt to 7.9 percent of the bond
portion of a typical mixed asset portfolio from 10.7 percent a
month earlier.

“There will be more nasty surprises next year. The European
banking system still has major issues and bad debts to write
off,” said Jeremy Beckwith, chief investment officer at wealth
manager Kleinwort Benson.

By contrast, primarily euro zone European investors outside
Britain increased their exposure. Some of this may have been a
case of investors bringing their assets home.

The poll also does not differentiate between moves into core
euro zone debt such as German and peripheral debt such as

Overall, however, investors appeared to be keeping
relatively bullish, boosted by both the U.S. Federal Reserve’s
asset-buying quantitative easing programme and signs of
better-than-expected global economic recovery.

The managers raised equity exposure to 53.2 percent, the
highest since March, from 52.7 percent on October. Bond holdings
slipped to 34.2 percent from 34.6 percent and cash dropped to
4.6 percent from 5.0 percent. [ASSET/WRAP]

For Graphic click on: http://r.reuters.com/nyg77q Asset
allocation poll graphic


U.S. fund managers increased exposure to stocks and slowly
cut back on bonds for the third month in a row.

The poll of 14 U.S.-based fund management companies showed
firms increased their equity holdings to an average 63 percent
of their assets, up from 62.4 percent in November and 61.7
percent in September.

They trimmed their exposure to bonds to 30.2 percent from
30.4 percent in October. Cash holdings dropped to 2.8 percent
from 3.3 percent. [US/ASSET]

Japanese fund managers also lifted their global stock
weightings, to an 11-month high in November.

The survey showed 13 money managers raised their average
weighting for global equities to 47.2 percent from 46.6 percent
the previous month.

The average weighting for bonds rose slightly to 46.9
percent from 46.8 percent while the average allocation to cash
fell to 3.2 percent from 3.7 percent. [JP/ASSET]

The poll of 17 Europe-based asset management firms outside
Britain showed a typical mixed portfolio holding 49.6 percent in
equities this month, the highest since February, compared with
48.4 percent in October.

It held 37.3 percent in bonds including government and
corporate debt — which is the lowest level since January.

Cash holdings ticked higher to 6.1 percent in November from
a nine-month low of 6.0 percent previously. [EUR/ASSET]

British fund managers bucked the global trend, cutting
exposure to equities to 52.8 percent in November from 53.5
percent in October.

Bond holdings rose slightly, to 22.5 percent from 22.2
percent. But there was a large cutback in euro zone bonds.

A separate poll, not included in the global calculations,
showed China-based funds cutting stocks and adding to cash.
(Additional reporting by Chris Vellacott and Natsuko Waki in
London, Akiko Takeda and Chikafumi Hodo in Tokyo, Alina Selyukh
in New York and Bangalore Polling Unit)

WRAPUP 1-Investors keep faith with stocks, cut euro zone bonds