T. Rowe Price has moved overweight on global equities in its multi-asset funds as it believes the market will broaden beyond US mega-cap stocks.
In its monthly multi-asset allocations, the firm said it has now increased the overweight on both global equities and equities overall.
Discussing the move, it said: “We have increased our overweight equities, supported by firming growth and moderating inflation, positive earnings trends and an expectation that the market will broaden beyond the US mega-caps.
“Sentiment remains positive as firming economic growth and inflation outlook should continue to drive earnings higher. Valuations are challenging, meaning earnings growth is needed to drive further upside.”
Within global equities, it specifically favours Japan, the US, emerging markets and Europe.
It remains underweight on Australian equities and believes recent economic data is surprising on the upside and the government is supportive of the economy. However, this is outweighed by falling commodity prices and expects delays to the Reserve Bank of Australia’s monetary easing cycle relative to other developed markets.
In January, the firm moved underweight on Australian equities and Australian fixed income after months of neutral positioning as it was concerned about short-term earnings. The team previously held neutral exposure to Australian equities for more than a year.
“We initiated an underweight Australian equity relative to global stocks due to earnings disappointment risk, elevated valuations after the late year rally and a headwind from a stronger Australian dollar,” it said in January.
Meanwhile, it has appointed Tim Chamberlain as APAC regional chief operating officer which will see him move from London to Australia.
He joined T. Rowe Price in April 2023 and currently serves as general manager for the firm’s chief data office.
In his new role, Chamberlain will provide oversight and management of T. Rowe Price’s APAC offices and their operations to support continued business growth in the region. He will also support the management of the APAC business and functioning as a key adviser and business partner to regional leaders and other senior executives.
“Tim’s data and operational experience, coupled with his understanding of the various local client landscapes, will be a great addition to the region,” said Kimberly Johnson, chief operating officer at T. Rowe Price.
“He will be focused on building local teams that will help us drive operational excellence in a complex data environment, while keeping the region connected in our global operating model.”
