The July Bank of America Merrill Lynch survey of global fund managers, done between 8 and 14 July, shows that Brexit did change asset allocations away from euro zone stocks to US and emerging market stocks. Fund managers were also asked the following question:
Over the next twelve months, which region would you most like to overweight/underweight?
The answer: Long emerging markets/short UK.
In addition, cash holdings have risen to 5.8%, the highest level since November 2001, plus a record proportion of investors have hedged against a sharp fall in the equity markets in the next three months.
To read the whole article, Fund manager allocations to emerging markets at 22-month high, go to the website of Livemint.
- Survey: Fund Managers Now Overweight on Emerging Market Equities (Live Mint)
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- Carry Trade, Politics Boost Emerging Market Equities (Reuters)
- Allocation and Share of Institutional Investors in Emerging Market Funds (EM Equity)
- Emerging Markets Back in Favour Among European Investors (Citywire)
- Investor Sentiment Survey: What Emerging Market Investors Think (Franklin Templeton)
- Why Investing in Emerging Market Infrastructure Makes Sense (Wealth Daily)
- As Emerging Market Growth Slows, Moody’s Thinks Advance Economies Will Drive Global Growth
- Emerging Market Funds Hammer Developed Market Funds in July (Interactive Investor)
- Fund Managers Are Wary of “Cheap” Asian Stock Markets (FT Adviser)
- China’s Investment Managers Abandon the Retail Market to Focus on Wealth Management Market (FT)
- Sovereign Wealth Funds Increase Investments in Emerging Markets (SCMP)
- Obscure Stocks Make the Baron Emerging Markets Fund a Winner (Kiplinger)
- Diversifying Your Emerging-Markets Allocation (Aberdeen Standard)