Business · Markets · 1 hr ago
Global fund managers cut bank holdings as technology bets grow
Global fund managers have cut their bank holdings in recent weeks, according to a Bank of America survey.
The share of managers who favor financial companies fell 21 percentage points in a month, to 13%, its lowest level in portfolios since April.
Technology is now a leading choice, with 37% of managers favoring the sector, the highest share since August 2020.
Their strongest focus is on semiconductor makers, the most crowded trade for 45% of those surveyed.
Concern about an AI bubble remains high: 45% expect one in 2027, while 42% firmly reject that possibility.
Some managers also fear AI spending could trigger wider financial strain; 39% see investment by major AI infrastructure providers as the likeliest source of a systemic credit crisis.
Managers are also adding fixed-income investments, though they still generally prefer stocks, and the survey gives no specific next step.
Global fund managers sharply reduced their exposure to banks over the past month, while increasing their preference for technology and fixed income.
The share of managers overweight financial firms fell 21 percentage points to 13%, the largest monthly drop in bank investment since March 2023.
Net preference for technology companies reached 37%, its highest level since August 2020, with semiconductor makers the most crowded trade.
Concerns about an artificial intelligence bubble remain widespread, and 45% of managers expect one in the sector by 2027.
The findings come from a Bank of America survey of 185 global fund managers.
- Who
- 185 global fund managers surveyed by Bank of America.
- What
- Managers cut their exposure to banks and increased their preference for technology and fixed income.
- When
- Over the weeks before the survey reported on 14 October 2026.
- Where
- Not stated.
- Why
- The article describes shifts in managers’ portfolio preferences, but does not state a specific reason for the bank sell-off.
Managers who expect an AI bubble
Managers who rule out an AI bubble
Expectation
Managers who expect an AI bubble
45% of surveyed managers expect a bubble in the sector in 2027.
Managers who rule out an AI bubble
42% of surveyed managers firmly rule out that possibility.
The share of managers backing technology had reached a peak of 82%.
The share overweighting financial firms fell by 21 percentage points to 13%.
The Bank of America survey findings were reported on 14 October.
- Survey respondents
- 185 global fund managers
- Combined assets
- 512 million euros
- Managers overweighting financial firms
- 13%, down 21 percentage points
- Net preference for technology
- 37%, highest since August 2020
- Most crowded trade
- Semiconductor makers, named by 45% of respondents
- Expected AI bubble in 2027
- 45% expect one; 42% rule it out
Related
Singapore central bank holds policy steady and lowers inflation forecast
49 mins ago · 3 sources
More than 20 Chinese automakers join Paris show as European competition grows
52 mins ago · 12 sources
Gold rises as oil prices fall and markets await US inflation data
43 mins ago · 4 sources
Singapore’s economy grows 5.4% in third quarter as manufacturing expands
1 hr ago · 2 sources
