Manager Confidence Drops

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    Amid concerns about China specifically, and emerging markets generally, fund managers’ confidence in the global economic outlook has dropped, as has their appetite for risk, says the ‘BofA Merrill Lynch Fund Manager Survey’ for September. It says the appetite for risk among global investors has declined in the past month. Equity overweights are down a net 24 percentage points from the previous survey and investor sentiment towards global emerging markets has soured further, with underweights at a record net 34 per cent. In the current climate of heightened volatility and uncertainty, fund managers are turning to cash, with cash balances up to 2008 levels of 5.5 per cent, it says.