Institutional investors remain optimistic about the global economic outlook, but they don’t expect growth to match historical averages,
Seventy-two percent expect the world economy to strengthen in the next year, but the same number of people say the growth will be below historical trend.
Despite this optimism, cash levels in fund managers’ portfolios edged up to 4.1%, from 3.7% in August, and the proportion of asset allocators overweight equities slipped to a net 27% from 34% in August.
“September’s jump in cash levels and lower equity exposure shows that investors’ risk appetite lags their confidence in the economy,” said Gary Baker, head of European equity strategy at