Managers pick commodities collapse as top tail risk

clock •

Prolonged low inflation has sent commodities allocations among fund managers to a four-year low, according to a new survey.

A quarter of respondents to the Bank of America Merrill Lynch's monthly poll on manager sentiment said a commodity collapse is the number one tail risk, an increase from 18% in April. The panel of 231 managers, with a combined £432bn of assets under management worldwide, have responded to the perceived threat by reducing allocations to commodities and emerging markets and upping their weighting to bonds. Nearly a third (29%) of those surveyed said they are underweight commodities, an increase from 11% in March. "May's fund manager survey demonstrates a clear exit from China and ass...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Fifty years after 'Bogle's Folly', what comes next for financial advice?

Fifty years after 'Bogle's Folly', what comes next for financial advice?

'Indexing will continue to grow, but the wrapper through which investors access it will change'

Gillian Hepburn
clock 12 October 2026 • 4 min read
Chris Justham: Why the industry must 'entertain and engage' investors

Chris Justham: Why the industry must 'entertain and engage' investors

‘We can’t just offer them a dry cracker and ask them to chew it down’

Chris Justham
clock 07 October 2026 • 3 min read
Jupiter Merlin makes 'keystone' changes and cuts charges on Select range to attract advisers

Jupiter Merlin makes 'keystone' changes and cuts charges on Select range to attract advisers

Two new funds launched

Michael Nelson
clock 06 October 2026 • 6 min read