In the latest survey conducted by nrpn (see pages 14-15), only 7.7 per cent of respondents said they were positive on global growth prospects for the first half of 2008.

The majority (53.8 per cent) said they were neutral, but a startling 38.5 per cent were pessimistic.

The results come in stark contrast to a survey done six months ago, which found almost the opposite sentiment.

Results showed that 54 per cent were positive on world growth, while only 7 per cent were negative. The remaining 39 per cent were neutral.

Clearly, the credit crunch has turned many Nordic investors away from equities and fixed income. The survey also found that 46.2 per cent of funds intended to cut their debt exposure over the next six months, while another 15.4 per cent intend to reduce their equity holdings.

Interestingly, funds appear to be running to private equity for help. An impressive 69.2 per cent said they would increase their exposure to the asset class this year. Inflation-fighting assets like infrastructure and commodities also found interest with 30.8 per cent and 15.4 per cent respectively saying they would raise their allocations in these asset classes.

It is not clear whether faith in the global market will be restored in the Nordic region in the short-to-medium term.

SA

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