BofAML survey: Jump in managers taking out equity correction protection

Adding cash and protection

The number of investors adding protection against an equity market correction has seen its largest monthly increase in 14 months, according to the latest Bank of America Merrill Lynch (BofAML)survey.

The September Global Fund Manager survey of 214 panellists with $629bn in AUM found participants were becoming more defensively-positioned in preparation for a possible market pullback.  As well as increased numbers buying protection, the average cash balance was 4.8%, above the 4.5% ten-year average. Bond market crash fears cause investors to hoard cash Some 30% said they would find an equity bubble the 'least surprising event' over the next 12 months. There were similar fears about the fixed income market, with 81% of investors describing bonds as 'overvalued'; the highest lev...