While UK wealth managers are generally positive about the state of investment markets, a large portion are also battening down the hatches in anticipation of a market downturn a study by Legg Mason Global Asset Management has found.
Global fund managers were yesterday accused of flying too close to the sun when it was revealed that despite thinking equities are overvalued, risk-taking has hit an all-time high.
Despite perceiving equities to be overvalued, global fund managers cut cash allocations and admitted taking above normal levels of risk, according to the November BofA Merrill Lynch fund manager survey.
The average cash level held by global fund managers has dropped to its lowest level in more than two years according to October’s BofA Merrill Lynch Fund Manager Survey.
Having hit a high of 9% in June, wealth managers cut their weighting in cash to 6.99% in the past three months in the Trustee MPI low-risk mandates.
Five managers give Portfolio Adviser the low-down on their current cash levels and what assets, if anything, they intend to splurge on.
Cash funds saw a surge in sales in March as investors fretted about the triggering of Article 50, according to data from one of the UK’s biggest distributors.
Leeds-based DFM Andrews Gwynne has moved up to a near 25% cash weighting, having significantly cut exposure to US equities and treasuries.
European Wealth has raised its cash levels, having taken profits from some of its more aggressive positions in emerging markets and Asia.
Paul Richards and Giles Hutson have launched Insignis Asset Management in a bid to capitalise on what they see as a growing demand for simplified and straightforward cash management in the UK.
Cash flow remains the focus for Nigel Thomas, as worries over growth and the lack of policy tools persist.
Cash and absolute return funds remain the defensive assets of choice ahead of the Brexit vote, a survey revealed.
