The survey was conducted Nov. 6 to 12 among 216 panelists with $573 billion in assets under management.
Investors’ cash levels sank to 4.1% from 4.4%, and now are below the pre-pandemic level — cash levels stood at 4.2% in January.
BofA noted that the levels are close to triggering the fund manager cash rule, which holds that when average cash balance rises above 4.5%, a contrarian buy signal is generated for equities, and when the cash balance falls below 3.5%, a contrarian sell signal is generated.
The November survey found that fund managers’ global growth expectations rose by nine percentage points from October to net 91%, which is second only to March 2002 as the highest growth expectations, BofA said. Forty-four percent of respondents said they expected the global economy to be a lot stronger.
Sixty-six percent of investors said the global economy was in an early-cycle phase, the highest since March 2010, and just 19% said it was in recession. Net 84% expected global profits to improve.
The November survey indicated that 38% of CIOs want chief executives to increase capital expenditures, up 10 points from October, but 47% still wanted to see improved balance sheets. BofA said “escape velocity” would be signaled by fund managers’ capex intentions surpassing demand for improved balance sheets.