Global Fund Manager Survey 1118

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 26 to 28. 12903612 Global Fund Manager Survey Cash poor, capex rich, rate cut needy BofA November Global Fund Manager Survey Bottom Line: investors bullish…most OW stocks since Feb’25, most OW commodities since Sep’22, running very low 3.7% cash levels (“sell signal”); FMS positioning a headwind not tailwind for risk assets, froth to correct further without Fed Dec rate cut, EM/banks most vulnerable to proper Q4 risk-off move, retail/UK assets the contrarian longs. On Macro: investors bullish on Goldilocks, 53% expect soft landing (vs 37% no landing, just 6% hard landing); global growth expectations turn +ve (net 3%) for 1st time since Dec’24; good news…53% say AI already increasing productivity; bad news…1st time in 20 years investors say companies “overinvesting” (read “slow down, hyperscalers”). On AA, Crowds & Risks: #1 most crowded trade = long Magnificent 7 (54%), #1 tail risk = AI bubble (45%), #1 credit event source = private credit (59%); net 34% OW global stocks (this normally closer to 60% at multi-year tops); investors most bullish on EM, healthcare (most OW since Dec'22); slashed exposure to UK (most since Oct'22) and discretionary (record decline); cut tech exposure by most in 8 months. On the Year Ahead: respondents say best performing assets = international (42%) & US stocks (22% - Chart 1), best performing equity indices = MSCI EM (37%) & Nasdaq (13%), best performing FX = Japanese yen (30%); most bullish 2026 catalyst for investors = AI productivity gains, most bearish catalyst = inflation & Fed rate hikes. Contrarian Trades: based on Nov FMS positions: long cash-short stocks, long sterling, long FTSE-short EM, long discretionary-short banks, long energy-short healthcare. Chart 1: International equities predicted to be best performing asset class in ‘26 Which of the following do you expect to be the best performing asset class in 2026? Source: BofA Global Fund Manager Survey BofA GLOBAL RESEARCH 42%22%9%8%8%6%4%051015202530354045International equitiesUS equitiesC