Investors less bearish on growth

Fund managers are more positive for global growth and have started to invest more in capital markets with the US and emerging economies picking up the largest flows. A regular Bank of America Merrill Lynch (BoAML) survey of investors shows that the amount held in cash by fund managers fell from a 15-year high of 5.8% in July, to 5.4% in August. A low and stable interest rate environment is a “big factor driving fresh optimism” and there is a preference among fund managers for deflation assets over inflation assets, said BoAML, though a record 48% of investors think global fiscal policy is currently too restrictive. Allocation to Eurozone equities remains low at a net 1% overweight, with investors seeing EU disintegration as the biggest investment risk. Allocation to UK equities remains underweight, though less than last month, moving from a net 27% underweight to a net 21% underweight. Allocation to emerging market equities has improved to a net 13% overweight – its highest level since September 2014. Allocation to US equities is at its highest since January 2015, at a net 11% overweight. “Investors are less bearish, but sentiment has yet to shift from ‘fear’ to ‘greed’. As such, we expect stock prices to rise further until bonds throw another tantrum,” said Michael Hartnett, chief investment strategist at BoAML. The survey of global investors had 181 respondents, including portfolio managers and chief investment officers. ©2016 funds europe

Sponsored Profiles

SPONSORED FEATURE: Alternative thinking

Mar 16, 2017

Portfolio Manager Davide Cataldo discusses the results of the Pioneer Investments’ survey on liquid alternatives and how investors can be encouraged to increase their allocation.

SPONSORED FEATURE: Interest rate risk hedging: Swapping to other options

Mar 16, 2017

Heightened margin requirements for cleared and uncleared OTC derivatives pose a challenge for legitimate hedging activities and are driving financial institutions to explore alternative hedging...

SPONSORED FEATURE: Why blockchain could be the fund industry’s next Ford Model T

Mar 16, 2017

Blockchain aims to radically change the way investors can access funds, says Olivier Portenseigne, Managing Director and Chief Commercial Officer of Fundsquare.

SPONSORED FEATURE: Open architecture: In need of protection

Mar 16, 2017

Greater efficiency must be embraced to ensure regulatory changes do not destroy choice for fund buyers, says Bernard Tancré of Clearstream.

Executive Interviews

CEO INTERVIEW: Munro gains three-year track record

Mar 16, 2017

Aviva Investors’ annual results this month were the third set since Euan Munro took over as CEO. Nick Fitzpatrick speaks to him about the ‘Aims’ fund at the heart of the firm’s outcome strategy.

DISTRIBUTION INTERVIEW: Tales of the unexpected

Mar 16, 2017

Laurence Terryn, a fund selector at Candriam, tells David Stevenson how the twists and turns of the past year’s macro environment flavoured her approach to fund selection.



Mar 07, 2017

Funds Europe speaks to leading Luxembourg industry figures about the growing regulatory demands on asset servicers and how to remain profitable in spite of major investments in technology.

SEC LENDING ROUNDTABLE: Both a borrower and a lender be

Jan 11, 2017

Industry heavyweights, including agent lenders, discuss issues affecting the securities lending sector such as regulation and the types of collateral being used.