LONDON: The world’s top investors cut cash holdings in May to their lowest since November and put money to work in risky assets, on the expectation that developed market interest rates will remain low, polls showed on Friday.
Property holdings and emerging market stocks and bonds were among beneficiaries of the hunt for yield. The European Central Bank is expected to ease monetary policy this week, and mixed US economic data have pushed back forecasts for a rise in US interest rates.
The monthly polls covering 51 leading investment houses in the United States, Japan and Europe showed cash holdings within the model portfolio fell to a six-month low of 5.7 percent in May, down from 6 percent in April.
Bond holdings rose to a two-month high of 35.9 percent from 35.6 percent, while equity holdings eased to a two-month low of 50.8 percent from 51 percent.
Property holdings rose to their highest since June 2011, though remained at a relatively modest 2 percent.
The poll was taken between May 12 and 28, when world stocks rose to six-and-a-half year highs and investors became less nervous about tensions between Russia and Ukraine.
Reuters
