By Rachel Hewitt
THE risk of a Chinese slowdown is playing on the minds of top Australian investment managers, despite overall optimism.
A poll of chief investment officers from 17 firms, including UBS global asset management, Goldman Sachs and Perpetual Investments, has revealed that a hiccup in China’s growth, the possible default of European economies and “systematic regulatory headwinds” are the key short-term concerns for the investment market.
The Financial Services Council survey found the sentiment of the big investment gurus was “fairly positive” with concern over the US economy “significantly” reduced and European sovereign debt fears easing, albeit slowly.
But there was a greater emphasis on the need for the Chinese economy to keep growing.
“There is now increasing attention being given to the risk of a slowdown in China over the next 12 months,” said FSC chief executive John Brogden.
nflationary pressures in China were also considered a risk factor in the long term.
The survey found Australian and international shares were expected to be the best performing assets over the next year, while Australian property was expected to fare “slightly better” than international property.