Cash levels among global fund managers set another record in March as the risk tolerance of the managers remained low, according to a monthly survey by Merrill Lynch. A record 42% of fund managers surveyed earlier this month said they were overweight cash, according to a Merrill Lynch news release. Thats up from the previous high of 41% a month ago. Meanwhile, the fund manager survey composite indicator for risk and liquidity in March was 31, unchanged from last month but down from a long-term average of 42.
The sinking equity markets havent turned managers off from equities, said the release. A quarter of respondents believe equities are attractive, undervalued on an absolute basis and relative to bonds.
Merrill Lynch surveyed 193 fund managers globally March 7-13; the managers run a total of $676 billion.