LONDON, March 31: European fund managers cut exposure to stocks slightly in March and raised bond holdings, making few major changes while mindful of the likelihood of rises in US interest rates, a Reuters poll showed.

Asset management houses increased exposure to bonds as a percentage of all holdings to 41.1 per cent from 40.8 per cent, while stocks fell to 50.8 per cent from 51.1 per cent. Property, cash and alternative asset holdings were little changed.

Expectations that the US Federal Reserve was likely to again raise interest rates may have made equity holders cautious but overall sentiment towards stocks remains fairly bullish, Franz Wenzel, senior strategist at AXA Investment Managers in Paris, told Reuters.

Within equity market sectors, the respondents are most bullish on industrial stocks and information technology, and most bearish on utilities.—Reuters