A $222 Billion Manager Shifts to Cash on Worries Trade War Will Spread
- Cash increased to 15% of assets from about 9% in January
- Fund turned tactically underweight equities in May: Gaud
This article is for subscribers only.
A $222 billion wealth manager that piled up cash to the highest level in years before last month’s global equity rout is now worried Europe might be next on President Donald Trump’s tariff radar.
Pictet Wealth Management boosted cash to about 15% of holdings from around 9% at the start of this year, and turned tactically underweight on global equities in May, said David Gaud, the chief investment officer for Asia. He said that the cash is almost three times the level that a fund should have over a decade. Money managers with $528 billion between them have an average cash balance of 5.6%, according to a Bank of America Merrill Lynch survey.