Fund Managers Show Optimism Amid Trade Concerns

Recent surveys indicate that big-money fund managers are more optimistic, holding the lowest cash levels since 2010, while expressing concerns about potential trade wars and tariffs under President Trump's economic strategies. The Bank of America survey highlights a significant shift towards equities, with many respondents predicting gold as the best-performing asset in a trade conflict. Concurrently, a task force has proposed significant reforms to Bangladesh's mutual fund industry, including discontinuing closed-end funds after ten years and advocating for more flexible asset allocation strategies to enhance investor returns. The current regulations, which require at least 60% of a fund's portfolio to remain in capital markets, have been criticized for limiting fund managers' ability to capitalize on market opportunities and protect investors from downturns. This reflects a broader trend in the financial sector towards greater flexibility and responsiveness to market conditions. Fund managers are increasingly recognizing the importance of adapting to changing economic landscapes to maintain competitive advantages.