Fund managers have turned significantly more cautious about the prospects for world growth and investment returns, according to the latest global survey of investment managers conducted by Towers Watson.
Announcing the results of the survey today, the company said the findings were in contrast to last year's survey, when managers expected the recovery to remain on track and were bullish on public equities and emerging markets.
Commenting on the findings, Towers Watson global head of investment Carl Hess said the global economic recovery remained as elusive and fragile as ever.
He said the second half of 2011 was a reminder that the fundamentals with respect to extreme indebtedness in the western world, and weak and uncertain prospects for growth, had not gone away.
Hess said these factors had clearly influenced mangers' outlook for 2012.
"As such this influential group of investment managers has shifted from expecting a continuing path to recovery and the avoidance of a double-dip recession in some markets, to anticipating a more volatile and patchy period defined by increased levels of risk, some growth and significantly lower returns," he said.
Hess' analysis pointed to continuing concern around Europe, but a view that the US outlook would continue to improve.
He said that managers had little concern about the fiscal situations in Canada, Australia and China.
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