BofA fund manager sentiment survey shows investor risk appetite at 3rd-highest since 2022, with record equity overweight and minimal cash allocation.
Macro & Markets ·
Bank of America's August fund manager sentiment survey revealed robust risk appetite among global investors, with the gauge climbing to 8.0—the third-highest reading since 2022. The survey polled 180 participants managing $525 billion in assets across growth expectations, cash positioning, and equity allocations.
Cash reserves among fund managers contracted to 3.5% month-over-month, marking the sixth-lowest cash level since the survey's inception in 1998. Concurrently, 56% of respondents maintained overweight equity positions, the largest share since November 2021, extending a 14-month streak of bullish positioning. Additionally, 37% of surveyed managers anticipated double-digit global earnings growth over the next 12 months, matching sentiment levels last seen in August 2021.
The convergence of minimal cash buffers, elevated equity concentration, and high growth expectations indicates pronounced investor confidence. However, the survey captures a single month's snapshot; whether this positioning sustains through market volatility or whether elevated allocation already reflects priced-in expectations remains unclear.