Just ten percent of fund managers expect faster global growth over the next 12 months, according to the latest results from the BofA Merrill Lynch Fund Manager Survey (FMS).
The FMS* finds that Fund Managers’ profits expectations for the next year have slumped to post-Brexit lows (see Chart). Michael Hartnett, BofAML Chief Investment Strategist, says that FMS profits expectations are usually positively correlated with the relative performance of Cyclicals versus Defensives. As such, this latest reading implies defensives are set to outperform cyclicals in the coming months.
*A total of 223 panelists with $643bn AUM participated in the survey for the BofAML Fund Manager Survey during the May survey period. 178 participants with $525bn AUM responded to the Global FMS questions and 116 participants with $293bn AUM responded to the Regional FMS questions.