You are here: Home - Investing - Experienced Investor - News -

Global fund managers dash for cash

0
Written by: Adam Lewis
18/02/2016
The average cash balances within global funds has reached its highest level since November 2001, according to the February Bank of America Merrill Lynch fund manager survey.

The research found the average cash balance of funds run by global asset allocators hit 5.6% in February, as investors showed a preference for capital preservation at the expense of growth.

Indeed allocations to bonds also surged to their highest level since November 2012, while those overweight in equities fell from a net 21% in January, to just a net 5% in February.

Michael Hartnett, chief investment strategist at Bank of America Merrill Lynch, says: “Investors have ‘reset’ expectations for macro and markets lower and see default/recession as a risk rather than a reality.”

Backing up this statement, according to the February survey global growth and profit expectations expectations among fund managers turned negative for the first time since July 2012. A net 16% of investors now expect a weaker global economy in the next 12 months, while a net 19% believe a recession will occur within the same timeframe.

Looking towards what is happening in the US, some 90% of the managers surveyed said they expect no more than two more interest rate rises from the Federal Reserve in the next 12 months, more than double from the 40% who predicted the same in December last year.

An overall total of 198 panellists with $591bn of assets under management participated in the survey, which took place between 5-11 February.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Staying invested over the long-term: the proof it pays off

The shaky start to the year for global markets has unnerved investors but the overarching message from the experts is: don't...

Close