Fund managers are shifting assets into cash because of the turmoil in global financial markets, according to the latest Merrill Lynch monthly survey.
The percentage of fund managers’ assets held as cash jumped from an average 4.1 per cent in early May to 4.5 per cent a month later.
A net 29 per cent of managers said they were “overweight” cash – one the highest readings recorded – compared with 18 per cent in May. “In light of the market turmoil, cash levels have shot up,” said David Bowers, global equities strategist at Merrill Lynch.
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