Saturday , November 23 2024

Increasing trend towards dividends and share buyback: 9 year record broken

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Ahmedabad: There seems to be a change in the desire of shareholders to get cash returns from companies. Companies' willingness to return cash through share buybacks, dividends or mergers and acquisitions has increased and is at a record high since 2015. This information has come from a recent survey by Bank of America Securities. The survey revealed that about 30 percent of investors want their cash to be returned through this medium.

Bank of America Securities said 226 panelists with $572 billion of assets under management participated in the March Fund Manager Survey, while 198 with $527 billion worth of AUM answered the Global Fund Manager Survey questions, while 256 119 panelists responded with billions of dollars worth of AUM. Regional fund managers responded to the survey questions.

Bank of America Securities said the equity allocation of select stock investors increased to overweight net 28 percent (highest since February 2022), while the cash allocation decreased to overweight net 5 percent (lower than last). Has gone. 6 per cent overweight) On a relative basis, investors have the highest weighting in equities compared to cash since November 2021.

Investors poured into emerging market stocks in March at the fastest pace since April 2017 and into eurozone stocks at the fastest pace since June 2020. Global growth expectations among fund managers were at a two-year high in the survey. Risk appetite has also reached its highest level after November 2021.

An interesting statistic is that 45 percent of global fund managers believe that stocks related to Artificial Intelligence are not in the bubble zone, while 40 percent believe that these are bubbles and can burst any time.