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Fund managers make a dash for cash

Potential for a US recession overtakes China and emerging market debt as biggest 'tail risk' for investors

Fund managers make a dash for cash
Photo: iStockPhoto

As market concerns rise, fund managers are increasingly turning to an old favourite: cash.

Funds surveyed by Bank of America Merrill Lynch now hold more cash as a percentage of their portfolios than at any time since 2001. The dash to cash, which now accounts for 5.6% of the portfolios of the 198 funds surveyed, comes as concerns over corporate profits and global growth has investors fleeing stocks and high risk bonds.

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