Multi-asset managers hike cash as fears gain momentum

Multi-asset investors have been upping their cash allocations as fears of a market correction escalate and safe-haven opportunities in other asset classes dry up.

After a dip earlier in the year following political turmoil in Ukraine, global markets have rebounded again, with many trading near record highs. But with few alternatives trading on obvious discounts, managers told Investment Week they are hiking their cash levels. James De Bunsen, who runs Henderson’s multi-manager fund range, said he has been raising cash allocations in the high risk portfolios: the Multi-Manager Active and Managed funds now allocate 9% and 7% to cash, respectively. “We do not really see other opportunities to provide that sort of shock absorber in any other ass...