Cash levels of fund managers lowest since May 2015: Survey

Nearly 82% of those surveyed expect bond yields to rise over the next 12 months

Average cash held by global fund managers has dropped to its lowest level since May 2015, reveals the Bank of America Merrill Lynch (BofAML) fund manager survey. Cash levels stood at 4.8 per cent in September compared to the peak of 5.8 per cent last October, but above the 10-year average of 4.5 per cent.

“Cash balances dipped this month but remain somewhat elevated. A faster drop in cash leading into 2018 would indicate a sell signal from investors,” said Michael Hartnett, chief investment strategist, BofAML.

A net 41 per cent of investors surveyed are expecting a stronger global economy in the