Fund of funds managers are maintaining high levels of fixed interest exposure in anticipation of fur...
Fund of funds managers are maintaining high levels of fixed interest exposure in anticipation of further weakness in global equity markets. Funds in the cautious managed sector are less than 50% invested in equities on average, with some 46.2% in bonds and 4.5% cash as of 1 August, according to Lipper. The IMA sector requirements say funds should be at least 40% invested in fixed interest and a maximum 60% in equities, although managers are on average 5.2% overweight bonds. The average equity exposure of 49.4% is predominantly focused on the UK, with funds, typically holding 45....
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