Fund managers’ Sit On Lowest Cash Balances Since 2014; Equity Allocation Cut Most

The bloodbath witnessed by the Indian markets amid coronavirus pandemic and global sell-off has seen fund managers sitting at the lowest cash balances in 6 years time. This is as per the BofAML Global Fund Manager survey.

Fund managers’ Sit On Lowest Cash Balances Since 2014; Equity Allocation Cut Most

Further the survey highlights that sentiment is near to the bear market extremes experienced in 2008-2009 in respect of cash as well as corporate leverage. The forecast on global growth has also fallen sharply and hints at going back to levels seen in 1994.
On Wednesday Standard & Poor forecasted growth for India for FY20 at 5.2% as recessionary concerns loom world economy amid coronavirus outbreak.

Additionally, in accordance with the survey, fund managers have lowered allocation to equity class by the most as per records. Furthermore, with reduction in allocation to equity asset class by the highest level this month, they have indeed become most negative on global growth in the history of the survey by BofAML.

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