Leading fund managers have staked their reputations, and their clients' money, on a sustained UK economic recovery by upping their holdings of shares and reducing their positions in bonds in the past month.
A survey of 11 British institutions showed the average exposure to equities jumped more than 3% points from a month earlier, while allocations to bonds fell from 25.5% to 24.2%, the Telegraph reports. Investors buy shares when they are confident about a company's prospects, while bonds are a more defensive asset class. The results for August were the first time in five months that fund managers increased their equity holdings, according to research by Reuters. They showed the average allocation to equities climbed to 49.8% in August, compared with 46.4% in July. Read more...
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