F&C Asset Management, one of the largest UK fund managers, said it is continuing to take a bullish view of global equities overall because aggressive interest rate cuts and other measures will boost stock markets over the medium term. The London-listed asset management firm, which oversaw more than £103 billion ($201 billion) of assets as at the end of last year, said it was overweight equities, underweight bonds and neutral towards cash and global real estate securities in May. Its position was unchanged from April. “Although risks to financial markets have risen, we take comfort from the aggressive and proactive measures taken by central banks to stabilise the financial system. Valuations also look attractive and the risk of another major bank collapsing has reduced,” F&C said in its monthly report detailing its investment views. Although it is generally bearish on fixed income as a whole, within this category, F&C has moved from a bearish to neutral stance on credit: corporate bonds and emerging market bonds. “We believe the risk/reward balance in credit markets is becoming more favourable,” F&C said. Among equity markets, F&C is neutral towards UK stocks and underweight on Pacific ex-Japan stocks. It is bullish on US, continental European, emerging market and Japanese equities.