More than 50 percent of LatAm fund managers cite China slowdown as major risk

Slowing economic growth and commodities demand in China is by far the biggest single worry among Latin American fund managers, who are now holding the largest cash position in their portfolios in two years, a Bank of America Merrill Lynch (BAML) survey showed on Tuesday.

Some 56% of those surveyed cited this as their No. 1 overseas risk for Latin American markets, up from 12% last month and far ahead of US elections (15%) and a strong US dollar (just over 10%). The Bank of America Merrill lynch survey of 52 fund managers with approximately $103 billion of assets under management was carried out from February 6 to February 13. Reflecting the greater degree of risk aversion, their average cash position shot up to 5.2% from under 3.0% in January, the highest since BAML began the Latin American fund manager survey two years ago, the bank said.