Money managers less confident

Other key findings from the survey show:

• sentiment towards global emerging markets soured further, with underweights at a record 34% and aggressive underweights are at an all-time high;
• cash balances are back up to 2008 crisis level of 5.5%;
• hedge fund net exposure and perception of market liquidity conditions are both at the lowest level in three years; and
• investors’ expectation of U.S. Fed rate rise has been postponed to the fourth quarter.

“Investors were already positioned for lower growth in China and emerging markets, but their risk-off stance has intensified,” says Michael Hartnett, chief investment strategist at BofA Merrill Lynch Global Research. “Contrarians will be noting the aggressive underweight positioning in emerging markets.”

Also read:

• 2015 Top 40 Money Managers Report: Pension funds embrace risky insurance products
• Rough Q2 for TSX and active managers
• Money managers achieve record profits, assets