Shifting portfolios

The latest BofA Global Fund Manager Survey shows a clear portfolio shift going into the second half of the year. Global managers have cut exposure to healthcare, European equities, and REITs, while adding to emerging markets, Japanese stocks — and notably, the U.S. The “great rotation” into Europe, which gained traction earlier this year as a challenge to U.S. exceptionalism, now seems to be losing momentum. This comes despite 91% of respondents viewing U.S. equities as overvalued.

Amid this shifting backdrop, we stay focused on what we do best — identifying businesses with undervalued earning power.