BofAML survey: 'Skittish' investors shunning equities despite improved risk appetite

Equities overweight down to 3%

Investors' exposure to global equities fell to their lowest level since December 2016 in March despite reduced cash balances suggesting an increased risk appetite, the latest Bank of America Merrill Lynch (BofAML) Global Fund Manager survey shows.

BofAML said "skittish" investors are now 3% overweight global equities, while cash balances have fallen to 4.6% and allocations to cash have declined four percentage points to net 40% overweight, down from last month's decade-long high. Half of fixed income investors predict end of economic cycle by 2021 In its commentary of the survey, which comprised 239 panellists with total AUM of $664bn, the bank noted that equity allocations have only been negative once in the past six years. The survey found investors are typically long defensives and rate-sensitive assets, and short cyclica...