© Reuters. FILE POTO: A trader looks at a screen showing the Dow Jones Industrial Average on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., September 13, 2022. REUTERS/Andrew Kelly
LONDON (Reuters) – Investors turned more optimistic about the global economy in February, increasing allocations to equities and cutting their cash holdings to levels last seen since before the war in Ukraine, a BofA survey of global investors showed on Tuesday.
The survey of 299 fund managers, who have a combined $847 billion in assets under management, found investors were still broadly cautious, but less so than been in recent months. Just 24% predict a recession compared to 77% who did in November, according to the survey, which covered the week to Feb 9.
Investors remain net overweight cash and underweight equities, but a combined index that measures growth expectations, cash allocations and equity allocations improved to its highest level in a year.
“(Fund manager survey) investors remain pessimistic in February but to a lesser degree, with all key measures of sentiment improving (month on month) and shift in positioning highlighting stronger risk appetite,” BofA analysts said in a note.
The survey also found that the percentage of investors who are overweight emerging market equities increased by 51 percentage points from November 2022 to February, marking the largest three-month increase on record.
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