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Fund Managers: Investors Ease Off Risk-Taking

Fund Managers: Investors Ease Off Risk-Taking

Concerns over a global slowdown and fears over the euro zone economies have re-emerged, leading to investors easing off of their risk-taking and lowering their expectations, according to the recent BofA Merrill Lynch Survey of Fund Managers.

The study, conducted in April, found investors

Concerns over a global slowdown and fears over the euro zone economies have re-emerged, leading to investors easing off of their risk-taking and lowering their expectations, according to the recent BofA Merrill Lynch Survey of Fund Managers.

The study, conducted in April, found investors have increased their cash positions significantly since March, with the percentage of asset allocators with overweight equities declining.

A total of 54 percent of respondents said that EU sovereign debt funding is the major tail risk, an increase over 38 percent from the month prior. A net 63 percent said they expected Spain to offer a negative surprise this year, up from 50 percent last month.

"Investors have moved to a more neutral position after positive shifts in sentiment and risk taking in the first quarter. We believe investors will retain a sense of caution throughout the second quarter," Michael Hartnett, the chief global equity strategist at BofA Merrill Lynch Global Research, said in the survey.

According to MarketWatch, investors did express optimism toward China, with more fund managers expecting China's growth to improve over the next year.