Cowley: Scant evidence of a 'great rotation'

Old Mutual Global Investors' (OMGI) Stewart Cowley believes the so called ‘great rotation' out of fixed income and into equities has as yet failed to occur.

Last month's latest Bank of America Merrill Lynch survey of major fund managers around the globe - who in total run $754bn of assets - revealed 51% of investors have moved overweight equities, the highest position since February 2011. Analysts at the bank said the move was evidence the ‘great rotation' out of fixed income and into equities had materialised. But Cowley, head of fixed income at OMGI, said equity market trading volumes remain thin. "There is scant evidence this ‘great rotation' has taken place, despite the IMA figures showing a bit of a shift," he said. "Equity tra...