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Fund managers take refuge in safe havens

THE UK'S top fund managers have turned increasingly bearish on the economic outlook and are seeking refuge in defensive stocks, reveals a survey published by Merrill Lynch yesterday.

In its monthly poll of fund managers, the US bank found that in December only 6 per cent of Britain's leading institutions expected a stronger economy in 1999, down from 9 per cent a year ago.

The fund managers anticipate a year of sluggish growth, with the British economy set to expand by just 1 per cent in 1999 and by 1.8 per cent in 2000. The mounting gloom is pushing institutions towards companies whose earnings are partially cushioned from the slowdown. According to the survey, three-quarter of fund ...

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