(January 20, 2010) — Global fund managers are allotting more cash for equities, taking above average risk relative to their benchmark, according to a Bank of America Merrill Lynch survey.
“This survey is one of the more bullish we have seen and suggests
that investors buy into the idea that this recovery has legs,” Gary
Baker, head of European equities strategy at BofA Merrill Lynch Global
Research, said in a news release.
The January study revealed a net 2% of respondents are taking
‘higher than normal’ risk, compared to a net 7% taking ‘below normal
risk’ in December 2009. According to the study, 52% of those surveyed
are overweight equities, up from a month earlier. Additionally, 55% of
respondents have no protection against a decline in equities in the next three months, an increase of seven percentage points from December.
The findings also revealed favor for Japanese equities, with 87% of those surveyed expecting improved earnings for Japan in 2010, up from 59% in November.
The study, conducted by BofA Merrill Lynch Global Research from
January 8-14, surveyed 209 fund managers, managing $539 billion in
assets.
To contact the <em>aiCIO</em> editor of this story: Paula Vasan at <a href='mailto:pvasan@assetinternational.com'>pvasan@assetinternational.com</a>; 646-308-2742