November 30, 2010 / 2:02 PM / 9 years ago

Italy funds raise equity exposure to above 51 pct-Lipper

* Equity exposure 51.8 pct in Nov vs 50.6 in Oct

* Bond exposure 40.75 pct in Nov vs 41.6 pct in Oct

* Poll does not fully reflect effects of Irish crisis

By Maria Pia Quaglia

MILAN, Nov 30 (Reuters) - Italian fund managers raised their equity exposure to above 51 percent in November after U.S. money authorities kicked off a second round of quantitative easing, though the data do not fully reflect the mounting Irish debt crisis.

Eight leading fund managers in Italy increased their portfolio’s equity exposure to an average of 51.8 percent in November, having moved to above 50 percent in October for the first time in about three years, a Reuters Lipper poll showed.

Bond exposure fell to an average 40.75 percent in November from 41.6 percent the previous month.

The poll does not reflect in full higher tensions linked to Irish sovereign debt risks and to worries of contagion that resulted in strong risk aversion and higher volatility.

“We are trying to assess what is changing in the EU with the Irish crisis and the potential contagion effect,” Zenit Sgr fund manager Marco Bonifacio said.

On the macro front, the economy has continued to give signs of improvements and investors appear to have put behind them worries of a double-dip recession.

“In the United States economic data have been better than expected. The Federal Reserve has injected liquidity at a time when the economy was recovering from a slowdown last summer,” Amundi strategist Sergio Bertoncini said.

On sector allocation, basic materials are preferred, followed by industrials, cyclicals and IT. Banks and real estate remained the most underweight. (Writing by Danilo Masoni; Editing by Jon Loades-Carter)

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