According to monthly poll conducted by Reuters of asset managers, global investors grew ever more cautious this month. This is in reaction to the crisis in Cyprus and the move was to add more safe-haven bond positions.
Another fact observed was that cash buffers fell to its lowest in two years. Investors still were keen on equities, keeping faith that US and Japanese central banks are providing proper economic support to keep the growth of stock markets in their respective countries.
Private equity funds on the other hand decreased their investment holdings in equities by 50.7%, unlike in February where levels were at 51.3% in February and 52.1% in January. Equity allocation levels for January were at its highest since April 2012.
The survey was conducted between March 15 and 27, at the height of the chaos for the last minute bailout deal for Cyprus. With the new provisions in the Cyprus bailout still being mulled over by the market, investors increased their equity allocations to 16% and bond allocations to 23.7% from previous periods.
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