Institutional investors are raising cash: Global managers’ cash allocation rose +0.4 percentage points MoM, to 3.9%, its biggest monthly increase since March, according to a BofA survey of 170 participants overseeing $470 billion in assets. This follows 3.5% recorded in early August, the 6th-lowest level since the survey began in 1998. As a result, 49% of fund managers are now overweight global equities, down from 56% last month. At the same time, 48% of those surveyed are underweight bonds, the highest proportion since May 2022. This marks the 17th consecutive month in which global investors have been underweight bonds, the longest such streak since 2022. Meanwhile, almost 50% also said they expect the Treasury’s buyback program to have no impact on yields. Investors are locking in some gains after the global equity rally.