Cash balances surge to near late-2008 highs as fund managers scale back their equity positions faster than ever before. Emerging markets stand out as the sole overweight.
Investors trim emerging market exposure and allocations to equities and commodities while raising cash and bond holdings, finds the latest BoA-Merrill Fund Managers survey.
Investors adopt a wait-and-see approach after high oil prices dampen their views on the global economy, reducing their exposure to equities and commodities.
Increasing global growth expectations see investors dramatically downsize their asset allocations to emerging markets in favour of developed markets.
Expectations for global growth and inflation are rising, and while the outlook on China has deteriorated fast globally, Asian investors have increased China positions, a survey finds.
Rising risk appetite sees a net 49% of global fund managers now overweight emerging markets, compared with 32% last month. But record inflows have put the spotlight back on valuations, with Morgan Stanley starting to scale back its position.