Economics & Strategy – Equity Strategy: Second

Bank of America Merrill Lynch, which spent the past three years in the runner-up position, leaps to second place. With more than a dozen strategists stationed in key markets across the region, the troupe is directed by David Cui, who also co-leads (with Thomas Wong) the team ranked highest for coverage of China, and Nigel Tupper, pilot of a runner-up crew in Quantitative Research. “We are positive on equities in Asia ex-Japan,” Tupper reports. “Valuations are not stretched, earnings expectations appear to have troughed, and the region should benefit as the global economy recovers.” The analysts are urging clients to overweight companies with exposure to rising domestic demand in Asia and those that export to the U.S. Further, “in a low-interest-rate environment, when yield-based assets remain in demand, we recommend investors position for a rotation from defensive yield to cyclical yield,” he says. One portfolio manager praises the group’s “in-depth analysis and solid knowledge of market dynamics.” Adds another: “They are very in tune with everything that is happening and have been a great resource.”— Thomas W. Johnson