Global fund managers reveal top concerns heading into year end

Fund managers are taking a cautious stance as the fourth quarter gets underway, opting to go underweight in risk assets in favor of defensive plays with lower volatility. AI, private credit, sticky inflation — and the Fed's ability to deal with it amid interference from U.S. President Donald Trump — are top of mind for fund managers and central bankers as policies diverge. For David Aujla, multi-asset fund manager at Invesco, this translates into a high-quality government bond play rather than, say, credit risk. "While we do not necessarily think a recession is imminent, we do think the balance of risks means that it is prudent to have greater exposure to more defensive assets at this stage," he told CNBC. Private credit and AI concerns Chief among concerns is the potential overspill of qu