Global fund raises cash levels

THE BlackRock Global Allocation fund, with US$23 billion under management, has been selling US equities and raising its cash levels.

US equity allocations have been cut from 32 per cent of the portfolio at the start of the year to 22 per cent today. Various valuation measures there all look overstretched, said fund manager Dennis Stattman.

The fund is holding more than US$5 billion in cash. Its cash levels, at 23 per cent, is higher than average in the fund's 16-year history. But it is still not quite the over-30 per cent levels in the past.