Fund Managers’ Hoard Cash Amid Uncertainty

Fund managers are once again increasing their cash allocations to defend against increasing uncertainty; that’s the key takeaway from Bank of America Merrill Lynch’s monthly Global Fund Manager Survey. The survey, which was conducted during the second week of October with 213 panelists managing a combined $563 billion, revealed that the respondents’ average cash level jumped from 5.5% during September to 5.8% at the beginning of October. The last time cash allocations if this level was after the Brexit to vote at the end of June. The only other times where cash as a percentage of assets under management has…