LONDON (Reuters) - A record number of fund managers in Europe have taken out protection against a sharp fall in equities and lowered their risk levels more than normal amid growing worries about the U.S.-China trade war, a key investor survey showed on Tuesday.
Bank of America Merrill Lynch’s latest monthly survey of European managers found the equities allocation is at a net 3% underweight and UK positioning has dropped to net 29% underweight.
The survey was carried out between Aug. 2 and Aug. 8.
A net 59% of investors expect the European economy to weaken over the next 12 months, increasing from 32% last month and the highest since December 2011.
Cash levels dropped in the region to 4.2% from 5.2% in July with money piling into high quality stocks, while some 28% of respondents expect the UK to leave the European Union by Oct. 31.
Reporting by Josephine Mason; editing by Thyagaraju Adinarayan