'Bullish' fund managers hike bank and Japan exposure

Japan sees biggest one-month jump in sentiment

The latest fund manager survey from BofA Merrill Lynch has shown bullish forecasts from investors, who have increased allocations to Japan and raised exposure to banks to record highs.

The survey, conducted between 2 and 8 December polling 173 fund managers with $473bn AUM, found that expectations of global growth jumped to 19-month highs (net 57% from net 35% in November), while a net 56% of investors thinking global profits will improve in the next 12 months. In addition, on corporate investment, a record number of investors (net 74%) think companies are currently under-investing. Allocation to banks also reached record highs with exposure growing to a net 31% overweight from a net 25% last month, with the current reading being far above its long-term average. ...