Fund managers favour US and EM equities as cash levels drop

Managers now 'less bearish'

Cash levels have fallen from a 15-year high of 5.8% to 5.4% in August as fund managers allocate towards US and EM equities, according to the latest Bank of America Merrill Lynch survey.

The data, which surveyed 211 panellists with $628bn AUM, found allocations to US equities has increased to net 11% overweight, its highest level since January 2015, while exposure to EM equities has also risen to net 13% overweight - the highest figure since September 2014. Meanwhile, weightings in eurozone equities remain low at a net 1% overweight, despite a rise in exposure to UK equities to underweight 21% from net underweight 27%. Brookes makes first foray into EM equities after sell-off The survey also revealed global growth expectations have rebounded, with 23% of investors ...