More than half of investment fund managers are slashing their exposure to cash and fixed interests in favour of riskier investments, member statistics from the Association of Investment Companies (AIC) have revealed.
The figures show that 56 per cent of AIC members with exposure to cash and fixed interest have been reducing their exposure to the low risk investment options during the first five months of 2009.
According to the AIC, the move suggests that investment trusts are taking advantage of the buying opportunities that have been created as a result of recent market turmoil.
A number of AIC members' investment trusts have reduced their exposure to cash and fixed interest, including trusts from Blue Planet and the Director's Dealing Investment Trust, commenting, Shaun Miskell, Investment Analyst at Blue Planet Investment Advisers Ltd said:
"Given that the credit cycle is now entering an expansionary phase, we see clear opportunities in financial stocks going forward, and have therefore allocated more into these financial stocks in recent months.
"It is clear that the market has failed to distinguish between bad banks that have run up huge losses, and quality, well-managed banks with positive earnings growth. It is these quality, yet grossly oversold, stocks we have invested in," he added.
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