investors' appetite for risk is behind them as their own faith in the coming economic upturn, as evidenced by the September surge of their interest in cash and reduce investment in equities.
Such a conclusion is made head of the European Office of Strategic Corporate Investments Banc of America Securities - Merrill Lynch Gary Baker after the September by Banc of America Securities - Merrill Lynch survey of asset managers.
According to the survey, investors are optimistic about the end of a global recession and further smooth, but not quick growth of the global economy. Meanwhile, although 72% of respondents see signs of economic growth worldwide, the same percentage of respondents expects that within the next 12 months, economic growth and inflation will still be below the average trend indicators noted in the study.
According to the poll in September, the average percentage of cash in portfolios rose to 4,1% of total assets, compared with 3.7% a month earlier, when the lowest observed value of this index since July 2007.
In absolute numbers, in September the number of managers with a high proportion of cash in portfolios rose to 10% from August to 3%. The number of managers with high equity stake dropped to 27% from 34% a month earlier. Investors have reduced investment in 8 out of 11 branch segments. A noted in August timid move towards cyclical stock sectors of the economy has changed direction. The people surveyed have reduced positions in sectors such as the degree of processing of primary raw materials, industrial companies and production of consumer goods - the study says.
Investors are united in anticipation of global economic growth, but suggest that it will be below trend values and does not bring with it excessive inflationary pressures, - said a leading strategist on international corporate investment Banc of America Securities - Merrill Lynch, Michael Hartnett. Click to continue »