Global fund managers still prefer equities, with 60% currently overweight in the asset class as of Feb. 9, up from 58% as of Jan. 12, according to a poll conducted by Merrill Lynch. The average weighting of equities in a global mixed fund stood at 56% in February, up from 55% in January.
Fund managers also expanded into more non-traditional assets; 31% are overweight in commodities and 26% are overweight in alternative investments such as hedge funds and private equity, the report noted. Only 7% of respondents are overweight in real estate investments.
Most investors plan to underweight U.S. investments over the next 12 months, though the sentiment is less pronounced than it was in the fourth quarter of 2004.
The survey polled 221 global fund managers with a combined $629 billion in assets under management.