Global funds cut stocks on fears that rise in inflation will trigger a sell-off

London

GLOBAL investors trimmed equity holdings by 1.2 percentage points in January, concerned that markets have grown complacent after a thundering bull run and seeing risks of an inflation wake-up call.

Reuters' monthly asset allocation poll of 50 wealth managers and chief investment officers in Europe, the United States, Britain and Japan showed growing caution about equities even as world stock markets surged to fresh highs in January after repeatedly smashing records in 2017.

The poll was conducted between Jan 15 and 29, with most participants responding before a late-month wobble in stocks, but asset managers still cut their equity allocation to 50.1 per cent from 51.3 per …