Fund managers sitting on biggest cash pile since April 2020, when Covid-19 hit, BoA survey shows

Fund managers around the world boosted their cash on hand in March to 5.9%, the highest level since the start of the pandemic, in response to Russia's invasion of Ukraine, the results of a closely-followed survey revealed.

According to Bank of America's monthly Fund Manager Survey, growth optimism also took a hit, falling to its lowest level since July 2008, just before the collapse of Lehman Brothers.

Commenting on the survey's results, BoA strategists noted that investor perception of "stability risks" was consistent with a greater than 10% fall on the S&P 500 toward the 3,600 point level.

They also highlighted the fact that investors were now very underweight bonds, but not so in equities.

Critically, fund managers' equity allocations were not yet at so-called capitulation levels and the investment bank's Bull & Bear gauge was not yet at "extremely" bearish levels, so it was to early to issue a contrarian 'buy' recommendation.

Nevertheless, the Federal Reserve was still expected to hike interest rates.