BofA Merrill Lynch Fund Manager Survey Finds Resurgence In Investor Sentiment

BofA Merrill Lynch’s Composite Indicator for Risk and Liquidity rose to 35 from 31 in July. Fund managers have reduced cash positions slightly to an average of 4.7 percent of portfolios, down by 0.2 percent. A net 3 percent of the panel describes trading conditions as good. The same number assessed conditions as “poor” in July.

Investors’ demands for cash grow stronger

Investors are putting greater pressure on corporates to return cash to shareholders. A net 43 of the panel says that share buybacks and dividends is the most important use of cash flow, ahead of capital spending and strengthening balance sheets. This is the highest reading since November 2010 and up from a net 37 percent in July.

Survey of Fund Managers

An overall total of 232 panelists with US$640 billion of assets under management participated in the survey from 3 August to 9 August. A total of 173 managers, managing US$491 billion, participated in the global survey. A total of 119 managers, managing US$277 billion, participated in the regional surveys. The survey was conducted by BofA Merrill Lynch Research with the help of market research company TNS. Through its international network in more than 50 countries, TNS provides market information services in over 80 countries to national and multi-national organizations. It is ranked as the fourth-largest market information group in the world.

BofA Merrill Lynch Global Research

The BofA Merrill Lynch Global Research franchise covers more than 3,300 stocks and 1,060 credits globally and ranks in the top tier in many external surveys. Most recently, the group was named Top Global Research Firm of 2011 by Institutional Investor magazine; No. 1 in the 2012 Institutional Investor All-Asia survey for the second consecutive year; and No. 2 in the 2012 Institutional Investor All-China, All-Europe, All-Japan and All-Latin America surveys. The group was also named No. 2 in the inaugural 2012 Institutional Investor Emerging Markets Equity and Fixed Income survey, covering Emerging Europe, Middle East and Africa.

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