INSUBCONTINENT EXCLUSIVE:
Mumbai: Fund managers are increasing cash levels amid continued concern over trade war, according to the findings of a Bank of America
Cash level jumped to 5% from 4.7% in the previous month, which is higher than average level of 4.5% in the past 10 years.
The survey was
conducted between August 3 and 9 and 243 panellists with $735 billion in assets under management participated in it.
Trade war is seen as
the biggest tail risk by 57% of the fund managers followed by quantitative tightening and slowdown in China, which were the biggest tail
showed.
Allocation to emerging markets stayed at 1% underweight, which is 0.9 standard deviation below the long-term average, the survey
flight to perceived safe havens via US equities cash vs
since January 2015, with allocations to US equities rising 10 percentage points to 19% overweight, as investors continued to buy growth over
value both regionally and sectorally, the survey showed
Alibaba Group Holding and Tencent Holdings) emerged as the most crowded trade in August, according to the survey
Short treasuries was also among the most crowded trades.
