Allocations to European equities hit 15-month high despite election risk

BofA Merrill Lynch survey

Tom Eckett
clock • 2 min read

Fund managers are cutting US equities exposure in favour of European equities despite the region's upcoming elections, the latest Bank of America Merrill Lynch Fund Manager survey has revealed.

The survey, carried out between 6 and 12 April, found the number of fund managers overweight eurozone equities had reached a 15-month high, with 48% of respondents overweight the region.  Within Europe, the UK was the least preferred region and its relative positioning versus European equities is within 1% of an all-time low. Furthermore, this was the fifth largest rotation out of US equities into European equities since 1999, with 20% of managers saying they were underweight US equities, the lowest allocations since January 2008. Ronan Carr European equity strategist at BofA Merri...

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