According to the survey, investors have increased their cash positions significantly since March, with a net 24% of global asset allocators being overweight cash in April, up from a net 6% one month ago.
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Average cash balances also rose to 4.7% of global portfolios, which is an increase from 4.2% in March, the report says.
A net 26% of asset allocators are overweight equities, down from a net 33% in March and increased allocations are being seen in pharmaceuticals, a counter-cyclical sector while reducing positions in materials, a cyclical sector.
Further, while 54% of the panel opined that EU sovereign debt funding is the number one tail risk; up from a 38% in March, a net 63%of the panel predicts that Spain is likely to provide a negative surprise in 2012, up from a net 50% last month.
A net 56% of the panel also said that France could provide a negative surprise, up from a net 52%.
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By GlobalData"Investors have moved to a more neutral position after positive shifts in sentiment and risk taking in the first quarter. We believe investors will retain a sense of caution throughout the second quarter," said Michael Hartnett, chief Global Equity strategist at BofA Merrill Lynch Global Research.
Many global investors have increased allocations to US equities in April or expressed an intention to do so; with a net 27% of global asset allocators being overweight US equities in April, up from a net 14% in March.
Meanwhile, the US is named as the region that net 18% of the panel would like to overweight, with only 2% having named the US as their preferred overweight last month.
