Russell’s Investment Manager’s Outlook Survey

Russell Investment Group of the Russell indexes has about $2.3 trillion in assets under consultation. Also, Russell Investment Group monitors close to 4,500 investment management firms. “Prior to the end of each quarter, Russell surveys a sample of those decision makers to collect their top-line opinions about the direction of the markets, sectors/styles to watch, and trends on the horizon that could impact investment strategy. The result of this survey is Russell’s Investment Manager Outlook.” The latest Investment Manager Outlook contains Russell’s quarterly survey of managers and their views of the market.

The table below lists the manager expectations by asset class for the coming year. The 80% of the responding managers are bullish on the US large cap growth stocks. On the other hand, 70% of the responding managers are bearish on the real estate.

Asset Class	Bullish	Bearish	Neutral
US Large Cap Growth	80	9	11
US Mid Cap Growth	67	7	26
Non US Domiciled Equities	54	17	29
Emerging Market Equities	51	18	31
US Small Cap Growth	45	22	33
US Mid Cap Value	37	27	36
US Large Cap Value	36	28	36
US Small Cap Value	23	48	29
Cash	20	33	47
US Treasuries	14	55	31
Corporate Bonds	13	58	29
High Yield Bonds	12	62	26
Real Estate	7	70	23

The table below lists the manager expectations by sector for the coming year. The 74% of the responding managers are bullish on the healthcare sector. 73% of the responding managers are bearish on the autos and transportation sector.

Sector	Bullish	Bearish	Neutral
Health Care	74	6	20
Technology	72	11	17
Other Energy	53	24	23
Integrated Oils	46	26	28
Financial Services	40	24	36
Consumer Staples	35	24	41
Materials Processing	33	32	35
Producer Durables	29	24	47
Consumer Discretionary	27	42	31
Utilities	17	55	28
Autos and Transportation	8	73	19
Other	6	8	86

One other point to note is that 31% of the respondents consider market to be undervalued, 63% respondents consider market to be fairly valued, and only 6% consider market to be overvalued.