- Global institutional investors and wealth managers are stockpiling cash at the fastest pace on record, according to a Marsh Investments survey of 430 asset owners managing a combined $5.76 trillion.
- Net cash allocation intentions rose 35.5 percentage points to positive 22%, the sharpest year-on-year swing of any asset class in the survey.
- The survey, conducted in June and July, found 37.8% of respondents planned to increase cash allocations over the next 12 months, up from 9% in the prior-year survey.
- US and UK equities were the only two asset classes where more investors planned to cut exposure than add, with net allocation intentions at negative 10.3% and negative 16.5% respectively.
- Persistent inflation and mounting geopolitical risks dominate portfolio decisions, per the report.
Quotes
“Global institutional investors and wealth managers are stockpiling cash at the fastest pace on record while quietly retreating from US and UK equities as persistent inflation and mounting geopolitical risks dominate portfolio decisions, according to a report by Marsh Investments.”
“The institutional investment consultancy polled 430 asset owners managing a combined US$5.76 trillion and found that 37.8 per cent planned to increase cash allocations over the next 12 months, up from just 9 per cent in a similar survey last year.”