The Globe and Mail reports in its Thursday edition that Scotiabank strategists' quarterly survey of their global institutional portfolio manager clients provided deep and occasionally surprising insight into changing portfolio allocations in large funds. The Globe's Scott Barlow writes that managers are selling the United States to buy Canada and emerging markets. The survey found that 38 per cent of managers recently added to Canadian or emerging markets ex-Latin America holdings. This trend is not a huge surprise given that Toronto has outperformed the S&P 500 by 14 percentage points year to date; none of the managers surveyed had trimmed Canadian holdings. Industrials, technology and materials are the three sectors expected to outperform in the next 12 months. Tech bullishness is nothing new, but the belief in industrials and materials has surged. The U.S. materials index is underperforming badly but Canada's, with more than 80 per cent of its market cap derived from precious metals, is generating outsized returns. Canada is not as cheap as it used to be. Just over 40 per cent of managers found Toronto fairly valued but a rising percentage, now 26 per cent, believe the Canadian equity market is expensive.