By Vicki Schmelzer
NEW YORK (MaceNews) – Global fund managers pared risk holdings in June, while at the same time remaining “steadfastly bullish” about world growth prospects, according to the latest BofA Global Fund Managers survey, released Tuesday.
This month, a net 1% of those polled looked for weaker economic growth in the coming 12 months. In May, a net 14% looked for weaker growth and in April a net 36% looked for weaker growth in the year ahead.
A net 45% of fund managers looked for higher global inflation in the coming year, down from a net 66% with that view in May and a net 69% with that view in April.
Fund managers increased their cash and bond allocation while trimming equity, real estate and commodity holdings.
“The history of FMS suggests this is not a ‘big top’ for risk assets,” which “will be signaled by bonds & voters,” but merely investors taking “summer chips” off the table,” BofA Global said.
Cash levels rose to 4.1% in June, up from 3.9% in May and compared to 4.3% in April.
Cash allocation rose to a net 5% overweight this month, from a net 3% overweight in May and compared to a net 20% overweight in April.
In June, a net 38% of portfolio managers were overweight global equities, down from a net 50% overweight in May, but still well above the net 13% overweight seen in April.
A net 42% of managers were underweight bonds, versus a net 44% underweight in May and compared to a net 33% underweight in April.
Allocation to real estate stood at a net 15% underweight in June versus a net 14% underweight in May and a net 18% underweight in April.
This month, commodities allocation fell to a net 25% overweight from a net 31% overweight in May, but still above the net 20% overweight seen in April.
In terms of regional equity allocation, all regions except for the UK saw outflows.
Allocation to U.S. equities slipped to a net 17% overweight in June, down from a net 20% overweight in May but above the net 10% overweight seen in April.
A net 15% of those polled were underweight eurozone stocks this month, compared to a net 4% underweight in May and a net 4% overweight in April.
Allocation to global emerging markets (GEM) edged down to a net 42% overweight in June. This compared to a net 48% overweight in May and a net 41% overweight in April.
This month, allocation to Japanese equities flipped to a net 5% underweight from a 13% overweight in May, while UK allocation improved to a net 24% underweight from a net 26% underweight in May.
In terms of the three biggest “tail risks” seen by managers, in June, these were “2nd wave inflation” (34% of those polled), “AI bubble” (28%) and “Disorderly rise in bond yields” (19%),
In May, the tail risks were seen as “2nd wave inflation” (40% of those polled), “Geopolitical conflict” (20%) and “Disorderly rise in bond yields” (18%).
In June, the three “most crowded” trades were seen as “Long global semiconductors” (80% of those polled), “Long Magnificant 7 (12%), and “Long Oil” (4%).
The reading for “Long global semiconductors,” at 80% of those polled, is a record high for the survey, BoA Global noted.
Last month, the three “most crowded” trades were “Long global semiconductors” (73% of those polled), “Long Magnificent 7” (14%) and “Long Oil” (6%).
Note: the term “Magnificent Seven” was coined by Bank of America’s chief investment strategist Michael Hartnett, referring to a basket of the seven major tech stocks: Apple, Microsoft, Amazon, NVIDIA, Alphabet, Tesla and Meta.
In a special question this month, investors were asked about the current stage of AI stocks. Fifty-six percent of fund managers said AI stocks were in the “Boom” stage, 21% the “Euphoria” stage, 9% the “Profit-taking” stage and zero percent, the “Panic” stage.
On the winner of the 2026 FIFA World Cup, 22% favored Spain, 19% France, 8% England, 8% Brazil, 8% Argentina, 6% Portugal and 3% Germany.
An overall total of 198 panelists with $540bn in AUM participated in the BofA Global Research fund manager survey, taken June 5 to June 11, 2026.
Contact this reporter: vicki@macenews.com