LONDON- Fund managers have bought defensive equities seen as safer bets in times of economic and political strife, such as healthcare and consumer staples, and cut exposure to cyclicals over the past month, a key investor survey showed on Tuesday.
The rotation into defensives has left managers with their largest 'overweight' position on consumer staples since May 2013 and their most 'underweight' in basic materials since February 2016, Bank of America Merrill Lynch's survey of global managers managing more than $500 billion in assets showed.
The move highlights the huge skew in the market towards deflation plays rather than those that bet on inflation, BAML said. The poll was carried out between Oct. 4 and 10.
(Reporting by Josephine Mason, editing by Karin Strohecker) ((Josephine.Mason@thomsonreuters.com; +44 207 542 7695; Reuters Messaging: josephine.mason.reuters.com@reuters.net))
