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Legal & General cuts global equities to underweight after recent rally

Published 10/16/2019, 07:02 PM
Updated 10/16/2019, 07:08 PM
Legal & General cuts global equities to underweight after recent rally

LONDON, Oct 16 (Reuters) - Legal & General Investment
Management (LGIM), one of Europe's top asset managers, has cut
its global equities stance to underweight after the recent rally
across stocks amid fuelled by optimism over a possible
U.S.-China trade deal, it said on Wednesday.
The move is also due to concerns about global recessionary
risks even after positive signals from the U.S.-China trade war
and Brexit.
LGIM, which has around $1.4 trillion in assets under
management, had been neutral since around the spring.
"We're worried about the economic outlook and we had a bit
of a rally, so some of the risk premium over the trade deal has
been priced out," said Lars Kreckel, global equity strategist at
LGIM.
"We think we're late cycle in the economy anyway, so it felt
like a decent point to reduce our equity exposure a little bit,"
he said.

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