You are the portfolio manager for the ABC asset allocation fund.

In volatile market conditions with rising interest rates, asset allocation fund managers may shift to money market securities to reduce risk. The feedback from the document states:

"Asset allocation funds ideally provide a ‘balanced’ mix of safety, income and capital appreciation… When both bond and stock markets are volatile, they will hold large amounts of money market securities. In other words, asset allocation mutual fund managers attempt to time the market to get the best returns depending on market conditions."