Global fund managers made their biggest drop in cash levels since June 2020 this month, while making the most radical rotation away from US equities on record.
According to the latest Global Fund Manager survey by the Bank of America, cash levels fell from 5.9% in December 22 to 5.3% this month. This is still high given the 4.7% average since 1999, but the combination of expectation around peak rates and recession fears is causing the cash allocation to fall, BofA analysts said. Allocation to US equities collapsed in January, with respondents stating that their net underweight in the asset class stood at 39%, the highest since October 2005 (52%). This was the biggest month-to-month widening in net underweight on US equities since records...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
