The latest monthly Bank of America global fund manager survey has found investors are starting to shift cash into bonds as cash allocations reach a three-year low.
Global fund managers are starting the year with an optimistic mindset and “have never been as bullish” on the prospect for short-term interest rates, according to Bank of America.
Recent trends suggest a sharp rise in investors’ appetite to cash, including a surge towards cash ETFs. However, JPMAM maintains it is likely to underperform equities and fixed income in the year ahead.