Managers' cash levels slump and equity allocation soars to pre-Covid levels in Q4

UK, European and Japanese stocks bounce back

UK, European and Japanese stocks have come back into favour among fund-of-fund managers, according to Harrington Cooper's latest quarterly Asset Allocation Tracker, which found that equity levels have returned to pre-Covid levels for the first time since the beginning of the pandemic.

The report, which tracks the allocation moves of 31 multi-manager funds operating in the UK with a total AUM of £10bn, found equity allocation across balanced portfolios reached 58.3%, surpassing the previous high of 55.8% last seen at the end of 2019. UK equity allocation increased the most, having risen by 10.9% compared to Q3, which the report said was "likely driven by increased optimism in the domestic economy following the news of a Covid-19 vaccine, and the conclusion to the Brexit agreement". Global dividends reach $1.3trn in 2020 despite Covid cuts Elsewhere, European and ...