Managers shift to UK and Europe from EMs

Negativity towards European and UK markets has eased as investors rotate their portfolios away from emerging markets in favour of the more developed nations, according to a fund manager survey.

The latest BofA Merrill Lynch Global, Regional and GEM Fund Manager Survey, which interviewed 286 panellists with $739bn under management in the second week of October, revealed the number of asset allocators overweight emerging markets equities has slumped from 30% in September to just 9%. Conversely, the number of managers underweight eurozone equities has fallen to 29% from 38% the previous month. Meanwhile, 26% of investors were underweight the UK in September, compared to just 12% more recently. Nonetheless, those surveyed said the risk of recession in Europe in the coming 12 mon...