Fund managers are pulling money out of capital markets and opting for the safety of cash, suggesting they fear bad news will continue to rock the financial world, according to two surveys of their attitudes released yesterday.

Merrill Lynch's monthly report of asset managers' opinions found 42% of the 193 they surveyed were overweight cash, slightly up on February's 41% - itself a record. S&P Fund Services also said it had uncovered increased allocations to cash in a survey of 119 funds that invest across asset classes.