BofAML survey: Fund managers at their most bearish since 2009

Cash balance surges

clock • 1 min read

Fund managers are at their most bearish since the global financial crisis and are hiking portfolio cash levels, according to the June Fund Manager Survey from Bank of America Merrill Lynch (BofAML).

The average cash balance in June jumped to 5.6%, from 4.6%,  the biggest jump since the US debt ceiling crisis in 2011 but still slightly below February 2019's level. Fund managers also expressed their caution by reducing global equity allocations by 32 percentage points - the second largest drop ever - to 21% net underweight, the lowest allocation to equities since March 2009. Fund managers' allocation to bonds, meanwhile, has risen 12 percentage points to 22% underweight, which is the highest allocation since September 2011. This combination led the relative allocation of equitie...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Why investors 'can't outrun' slow-moving demographics

Why investors 'can't outrun' slow-moving demographics

'Demographic change is a key megatrend'

Darius McDermott
clock 07 March 2024 • 5 min read
Spring Budget 24: Ten key takeaways from Jeremy Hunt's speech

Spring Budget 24: Ten key takeaways from Jeremy Hunt's speech

British ISA, Office for Budget Responsibility, tax cuts

Valeria Martinez
clock 07 March 2024 • 4 min read
Spring Budget 24: Chancellor unveils long-term UK growth plan

Spring Budget 24: Chancellor unveils long-term UK growth plan

Includes British ISA launch and further NI cut

clock 06 March 2024 • 1 min read