Growth funds are spending stockpiles of cash

The recent market rally may have been spurred by active investors redeploying excess cash. (Photo: Getty)

Fri, 03 Feb 2023

Active fund managers have begun to reinvest stockpiles of cash they hoarded during last year’s downturn, spurring the recent market rally in equity markets.Many investors cashed up stocks and bonds last year as almost all asset classes dropped in value. With no safe harbour to invest in, much of this cash was parked in bank accounts. Even growth portfolios, which typically target cash levels in the low single digits, began carrying abnormal amounts of hard currency. According to the latest Fundsource data, the average growth fun...

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