European managers further reduce equity allocation in July
European asset managers reduced their holdings of equities further in July, according to the results of a poll run by Reuters.
A survey on 20 fund managers based in Continental Europe found that managers moved assets towards cash products and increased their exposure to US assets to shield against the eurozone debt crisis.
Equity holdings were cut to 40.8% from 42.2% in June on average.
Equities were overtaken by bond holdings which became the main asset class in portfolios with an average allocation of 41.2%.
Meanwhile, the share of US assets held by European fund managers increased in July, both for equities (41.8%) and bonds (27%), a shift caused by concerns over the outcome of the eurozone crisis.
Cash allocation remained at 11.4% of portfolios, in line with an allocation of 11.6% in June.
Exposure to alternative assets was raised to 6.2% in July from 5.6% in June, Reuters said.