* For poll data click reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/asset-allocation-polls
Sept 30 - Japanese fund managers slightly increased exposure
to equities in their model portfolios in September and trimmed
their bond holdings after the Federal Reserve refrained from
hiking interest rates, underpinning demand for riskier assets, a
Reuters survey showed.
The survey of five Japan-based fund managers conducted
between Sept. 15 and Sept. 23 showed respondents on average
wanted to allocate 37.4 percent of their portfolios to equities,
up from 36.4 percent in August, which was the lowest on record
stretching back to July 2011.
Poll respondents kept their exposure to North American and
Japanese stocks in September unchanged from the previous month
at 27.6 percent and 46.4 percent, respectively.
Amid concerns about the health of the European banking
sector, they reduced holdings of euro zone equities to 9.4
percent in September from 11.0 percent in August, while keeping
exposure to UK stocks unchanged at 7.0 percent.
They raised holdings of emerging European stocks to 3.8
percent from 2.1 percent.
Emerging markets breathed a sigh of relief this month after
the Fed stood pat on monetary policy and projected a less
aggressive rate rise trajectory in 2017 and 2018.
MSCI's emerging Eastern European index was
on track to rise 1.7 percent in September, during which it hit a
14-month high. It has gained more than 16 percent so far in
2016, while the MSCI world equity index, which
tracks shares in 45 nations, has risen 5.1 during the same
"We revised up growth forecasts of Poland, Hungary, and
Israel based on better than expected Q2 GDP outturn and
encouraging Q3 real sector indicators," wrote strategists at
The fund managers trimmed their overall bond holdings in
September to 57.2 percent from 58.3 percent in August.
They raised their exposure to Japanese bonds to 49.0 percent
from 45.3 percent while cutting holdings of North American debt
to 24.6 percent from 27.6 percent.
Analysts expect Japanese government bonds (JGBs) to draw
demand from some domestic investors with the Bank of Japan now
aiming to keep the benchmark 10-year bond yield at around zero
percent under its yield curve control scheme, which was
introduced earlier this month as a part of a policy overhaul.
Japan's 10-year JGB yield has previously slipped deep below
zero percent, prompting many domestic investors to look for
better-yielding instruments elsewhere.
(Reporting by Shinichi Saoshiro; Editing by Kim Coghill)