BofAML: Fund managers increase protection as market enters 'late-cycle' territory

Sharp sell-off last week

The latest monthly fund manager survey carried out by Bank of America Merrill Lynch found a record increase in the number of fund managers taking out portfolio protection as they become increasingly concerned about market direction.

The survey questioned nearly 200 global fund managers with $575bn in assets under management between 2-8 February when markets across the world were experiencing falls. In the US, the Dow Jones fell into correction territory with the Dow Jones dropping almost 10% in a week, while in the UK the FTSE 100 sunk 3% to 7,176 on 6 February. Volatility also returned with a vengeance as the VIX or 'Fear' index soared 115% to above 50 before last Tuesday's session started; its highest level since August 2015. Fund managers reveal how they are playing turbulent markets The BofAML survey re...