Global managers up cash weightings

Fund managers have increased cash positions significantly in the last month as investors scale back their risk-taking, a recent survey found.

According to the BofA Merrill Lynch Survey of Fund Managers for April, a net 24% of global asset allocators are overweight cash in April, up from a net 6% one month ago. Average cash balances also rose to 4.7% of global portfolios; an increase from 4.2% in March. The report found investors have scaled back both risk-taking and their expectations for global growth, after concerns about European economies resurfaced. A net 26% of asset allocators are overweight equities, down from a net 33% in March. Investors have increased allocations to pharmaceuticals, a counter-cyclical sector, whi...