The survey of 299 fund managers, who have a combined $847 billion in assets under management, found investors were still broadly cautious, but less so than been in recent months. Just 24% predict a recession compared to 77% who did in November, according to the survey, which covered the week to Feb 9.
Investors remain net overweight cash and underweight equities, but a combined index that measures growth expectations, cash allocations and equity allocations improved to its highest level in a year.
"(Fund manager survey) investors remain pessimistic in February but to a lesser degree, with all key measures of sentiment improving (month on month) and shift in positioning highlighting stronger risk appetite," BofA analysts said in a note.
The survey also found that the percentage of investors who
are overweight emerging market equities increased by 51
percentage points from November 2022 to February, marking the
largest three-month increase on record.
(Reporting by Alun John; Editing by Amanda Cooper)
