Fund managers are holding record underweights to the commodities sector, while emerging market sentiment has hit a near five year low, according to the latest Bank of America Merrill Lynch Fund Manager Survey.
The survey, which canvasses 248 global fund managers with assets under management of $708 billion, found extreme bearishness in Emerging Market area which is especially tied to Chinese growth, in addition to fears over U.S. Treasury volatility. According to the latest Bank of America Merrill Lynch European Fund Manager Survey, a Chinese hard landing and commodity price collapse is now the most feared tail-risk in the survey, being cited by one quarter of fund managers.
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