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BofA Fund Manager’s Survey – Aug 2024

by Team Lumida
August 14, 2024
in Macro
Reading Time: 9 mins read
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Bank of America surveys fund managers worldwide to gauge their outlook on the markets.

For August 2024 – 220 panelists with $590bn AUM participated in the August survey.

Join our telegram group to get commentary on these reports as soon as they release.

Key: FMS – Fund Manager Survey, OW – Overweight, UW – Underweight

Here are the Key Takeaways in Charts:

Jump to section

5. 59% expect lower bond yields

  • 1. 47% Managers expect a weaker global economy in the next 12 month
  • 2. Investors raised cash levels to 4.3% from 4.1%
  • 3. Investor Sentiment drops to 7-month low
  • 4. 55% of FMS investors believe that global monetary policy is too restrictive
  • 5. 59% expect lower bond yields
  • 6. 93% of investors expect short-term rates to be lower in 12 months’
  • 7. 60% of FMS investors expect 4 or more rate cuts from the Fed
  • 8. FMS investors rotated into bonds vs out of stocks in August
  • 9. “Long Magnificent 7” the most crowded trade
  • 10. FMS net OW healthcare, tech & stocks vs UW REITs, consumer & materials
  • 11. 47% of investors expecting a weaker economy in the next 12 months
  • 12. Net 29% of FMS investors expect profits to deteriorate in the next 12 months
  • 13. FMS investor allocation to equities is the lowest since Jan’24.
  • 14. FMS investors are the most overweight bonds since Dec’23.
  • 15. FMS investors have raised cash allocation in the past 2 months
  • 16. August saw FMS investors increasing allocation to healthcare and staples

Expectations for lower bond yields jumped 14ppt MoM (the largest monthly rise since June ’09 and the third largest monthly rise in 22 years).

Jump to section

5. 59% expect lower bond yields

  • 1. 47% Managers expect a weaker global economy in the next 12 month
  • 2. Investors raised cash levels to 4.3% from 4.1%
  • 3. Investor Sentiment drops to 7-month low
  • 4. 55% of FMS investors believe that global monetary policy is too restrictive
  • 5. 59% expect lower bond yields
  • 6. 93% of investors expect short-term rates to be lower in 12 months’
  • 7. 60% of FMS investors expect 4 or more rate cuts from the Fed
  • 8. FMS investors rotated into bonds vs out of stocks in August
  • 9. “Long Magnificent 7” the most crowded trade
  • 10. FMS net OW healthcare, tech & stocks vs UW REITs, consumer & materials
  • 11. 47% of investors expecting a weaker economy in the next 12 months
  • 12. Net 29% of FMS investors expect profits to deteriorate in the next 12 months
  • 13. FMS investor allocation to equities is the lowest since Jan’24.
  • 14. FMS investors are the most overweight bonds since Dec’23.
  • 15. FMS investors have raised cash allocation in the past 2 months
  • 16. August saw FMS investors increasing allocation to healthcare and staples
Page 5 of 16
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Source: Bank Of America
Tags: Fund Manager SurveyMacro
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