Fund managers opt for safety: FMS cash allocations above average

The Fund Manager Survey [FMS] has unveiled two key market trends. Firstly, cash allocations - the percentage of cash held by fund managers in their portfolio - are currently exceeding their long-term average, indicating a possible preference for caution or risk-aversion among fund managers.

Secondly, sector allocations - the distribution of investments across industries - show that fund managers are favoring healthcare, staples, and materials sectors, which may indicate greater potential for profitability. Conversely, fund managers appear to be reducing their allocation towards discretionary, utilities, and tech sectors, suggesting they perceive these areas as comparatively less attractive or riskier in the current market climate.