News: Market optimism among managers.

Pensions Week, June, 2009

Byline: Tom Willetts

Seven out of 10 fund managers predict the global economy will improve over the next year, according to a global investment survey.

The findings from Merrill Lynch suggest fund managers have reduced average cash holdings from 4.9% to 4.3% amid positive expectations on corporate profits.

According to 18% of fund managers this month, the outlook for global profits will improve over the next year, while in contrast 12% of fund managers were bearish about profits in April.

While many investors are still underweight in equities, cyclical stocks such as energy, materials and industrials have become more popular. They are expected to perform better during a recovery.

Investors have moved to a net...

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