Investors are retaining a cautious outlook in August, holding higher than average weightings to cash and US equities, while selling exposure to commodities and UK equities, according to the latest Bank of America Merrill Lynch (BofAML) global research report.
The survey of 243 fund managers globally, carried out between 3-9 August, also found the average cash balance had risen from 4.7% in July to 5%, higher than the ten-year average of 4.5%. BofAML said respondents were "flocking to safe havens" with US equities being the most favoured equity region for the first time in five years; fund managers increased their allocations on average ten percentage points to a net 19% overweight, the biggest overweight since January 2015. Respondents said this was a result of expectations for corporate profits in the region with net 67% of those surveyed...
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