Quick Bites | Fund Managers Cool on Commodities

According to the latest survey from Bank of America (BofA), global fund managers have reduced their broad commodity positions compared to last month. As shown in the chart below, the survey reveals that global managers have rotated heavily into Eurozone equities, Utilities, REITs, and Bank sectors. Overall, they reduced weightings in Materials, Energy, Japanese equities, and Bonds.  


Source: BofA GFM Survey 

In a recent note, Goldman Sachs highlighted that if inflation re-accelerated, broad commodities were likely to outperform equities and bonds. As indicated by falling yields in the bond market over the past month, the chances of that occurring appear to be diminishing – thus reflected by global fund managers lightening their exposure to commodities.