Follow The Pros? Money Managers Holding Largest Cash Position Since 2001

Fund managers across the world are hoarding cash, according to Bank of America's monthly fund manager survey.

The bank's survey consists of 213 fund managers across the world who manage close to $900 billion worth of assets. Only 1 percent of the managers indicated they are overweight equities, marking a decrease from last month's 6 percent findings.

Meanwhile, cash allocation of 5.7 percent marks the highest level since 2001. However, this isn't necessarily a bearish sign for the equity market as fund managers are likely waiting on the sidelines and ready to jump back into the equity and/or bond market.

Related Link: Is There Anything Besides Brexit That Will Move The Markets?

"Negative summer 'events' [for example Brexit] could thus quickly become tradeable buying opportunities," the Australia-based Sydney Morning Herald quoted the bank's chief investment strategist Michael Hartnett as saying in his report.

The report noted that the Brexit vote represents the biggest "tail risk" to investments, following by the risk of "quantitative failure" among central banks to stimulate growth.

Despite the large amount of cash hoarding and lower exposure to equities, the report also found that fund managers are optimistic about the next 12 months. A net 23 percent of respondents expect a strong economy over the next year.