Bank of America Merrill Lynch's latest monthly survey found cash
levels down to 5.2% in July from 5.6% the previous month,
although that's still elevated compared with the 10-year average
of 4.6%.
However, allocation to global equities rose 31 percentage points
over the month to take funds to a net 10% overweight. A net 23%
of funds said they were overweight emerging markets.
Bond yield expectations were at their lowest since the Lehman
Brothers' collapsed in 2008, while investors said being long
U.S. government bonds were the "most crowded" trade for a second
straight month, ahead of long U.S. technology and long
investment grade corporate bonds.
The trade war was still considered the biggest risk to markets,
topping the charts for 15 out of the past 17 surveys, but the
proportion of respondents that view it as the main tail risk
dropped to 36% from 56% in June.
The poll was conducted among managers with $598 billion in
assets between July 5-11.
(Reporting by Josephine Mason; editing by Sujata Rao)
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