BOFA Fund Manager Survey (Aug. 2016)
Cash levels coming down from a 15-year high
Investors are still hoarding cash according to Bank of America Merrill Lynch’s survey of fund managers published 16th Aug. 2016. According to the survey, cash levels dropped to 5.4% from 5.8% last month,...
...but were still at the highest levels since 2001. An overall total of 211 participants, with assets under management of $628 billion, took part in the survey, taken Aug. 5-11, 2016.
Still, fewer fund managers are trying to hedge against a sharp fall in equity markets in the next three months. They are instead maintaining cash allocations near historic highs.
Reminder on the signal of the cash-piling: When fund managers put more than 4.5% of their holdings in cash, as has been the case for some time, it creates a contrarian buy signal, the Merrill Lynch researchers noted - in the last report from July.