global fund manager-On AI, Gold - Crypto

Trading ideas and investment strategies discussed herein may give rise to significant risk and are not suitable for all investors. Investors should have experience in relevant markets and the financial resources to absorb any losses arising from applying these ideas or strategies. >> Employed by a non-US affiliate of BofAS and is not registered/qualified as a research analyst under the FINRA rules. Refer to "Other Important Disclosures" for information on certain BofA Securities entities that take responsibility for the information herein in particular jurisdictions. BofA Securities does and seeks to do business with issuers covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. Refer to important disclosures on page 25 to 27. 12864438 Global Fund Manager Survey On AI, Gold & Crypto BofA August Global Fund Manager Survey Bottom Line: not a clear and obvious inflection point in our survey but most bullish FMS since Feb'25, with probability of hard landing lowest since Jan'25, cash as % AUM at historically low 3.9%, equity allocations on rise but not at extreme levels. On Macro & Policy: 68% predict soft landing, 22% no landing, just 5% positioned for a hard landing; expectations for global growth remain tepid net -41%; rate cut optimism highest since Dec'24; asked if next Fed Chair resorts to QE/YCC to ease US debt burden, 54% said yes, 36% no; final US tariff rate on RoW expected to be 15% vs 14% in July). On Risks, Crowds & AI: tail risk of trade war/recession falling (29%), tail risks of inflation/no Fed cuts (27%), disorderly bond yields (20%), AI bubble (14%) rising; most crowded trade “long Magnificent 7” once again (45%), but majority 52% see no AI bubble (41% do) and 55% say AI already boosting productivity. On AA: global equity OW (net 14%) highest since Feb'25, rotation out of EU (24% OW) to EM (37% OW - highest since Feb'23), Japan (2% UW), US (16% UW); record 91% say US stocks overvalued; rotation to utilities, energy, financials from healthcare (lowest OW since Feb'18); 33% want to increase hedges against weak US$ (recent high 40% in May). On Crypto & Gold: just 9% of investors have exposure to crypto (with average 3.2% allocation); adjusting for 75% with no crypto the total FMS portfolio exposure to crypto is 0.3%; 48% of investors have exposure to gold (with average 4.1% allocation); adjusting for 41% with no gold total FMS portfolio exposure to gold is 2.2%. Contrarian Trades: based on FMS positions, best August contrarian longs are US$, cash, REITs, healthcare, and best contrarian shorts are stocks, EM, banks, utilities. Chart 1: 68% say soft landing, 22% no landing, just 5% hard landing What is the most likely outcome for the global economy in the next 12 months? Source: BofA Glo