Trade war dominated fund manager concerns in 2019

fund-managers/trade-war/Bank-of-America/BofA/

19 December 2019
| By Jassmyn |
image
image image
expand image

Fund managers (33%) around the world believe that the US/China trade war is the biggest tail risk, according to Bank of America’s (BofA) Global Research.

Its latest fund manager report found that in December, the threat of the trade war had reduced as less managers believed it was the biggest tail risk compared to November at 38%.

The trade war also topped the charts for 20 of the past 22 monthly surveys.

 

Source: Bank of America Global Research

Another 22% believed the outcome of the 2020 US Presidential election was the largest tail risk, followed by ‘bond bubble pops’ (19%), and ‘monetary policy impotence’ (12%).

However, the survey also found that global growth expectations jumped 22 percentage points to 29% of investors that indicated they expected global growth to improve, and recession concerns plummeted 33 percentage points to 68% of investors believing a recession was unlikely in 2020.

When managers were asked what trade they thought was the most crowded, 34% said ‘long US tech and growth stocks’ followed by ‘long US treasuries’ and ‘long investment grade corporate bonds both at 20%, and short volatility at 19%.

In terms of sectors, most managers said they were overweight technology (32%), pharma (31%), discretionary (12%), and banks (9%).

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

5 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

5 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

7 months ago

Commonwealth Bank has formally dropped to zero advisers following LGT Crestone’s acquisition of its advice arm – some six years on from the Hayne royal commission. ...

4 weeks ago

The FSCP has issued a written direction to an adviser who charged clients “extraordinary fees” for inappropriate and conflicted advice, as well as encouraged them to swit...

1 week 4 days ago

ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager. ...

2 weeks 6 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
3