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Funds fully invested going into poll

Tuesday, November 08, 2016 - 01:17

Many big U.S. fund managers are staying aggressively positioned with little cash on hand despite election jitters. Fred Katayama reports.

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U.S. stocks have swung wildly in the week leading to the presidential election Tuesday. But managers of funds that invest in big U.S. stocks aren't showing much caution despite the likelihood of higher post-election volatility. Morningstar data show they only have just over 3 percent of their assets in cash. Tim McLaughlin covers mutual funds at Reuters. SOUNDBITE: TIM MCLAUGHLIN, MUTUAL FUNDS CORRESPONDENT, REUTERS, (ENGLISH) SAYING: "I think I was a little bit surprised that big large cap mutual funds were heading into the election with just a thin layer of cash in their portfolios, so basically they are mostly fully invested and looking like, you know, the bull run is going to continue." Continuity is what investors see in Democrat Hillary Clinton. She's regarded as the status quo candidate. Investors regard Republican Donald Trump as the big unknown because of his stance on foreign policy, immigration and trade. If Trump wins, Citigroup sees the S&P 500 falling by up to 5 percent. European fund managers, who have seen the volatility wrought by Britain's vote to leave the European Union, are more defensively positioned.

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Funds fully invested going into poll

Tuesday, November 08, 2016 - 01:17