The world’s top investors cut cash holdings this month to their lowest since November and put money to work in risky assets, on the expectation that interest rates in developed markets will remain low, Reuters polls showed yesterday.

Property holdings and stocks and bonds in emerging markets were among beneficiaries of the hunt for yield. The ECB is expected to ease monetary policy next week, and mixed US economic data have pushed back forecasts for a rise in US interest rates.

The monthly polls covering 51 investment houses in the US, Japan and Europe showed cash holdings in the model portfolio fell to 5.7 per cent in May, a six-month low. Bond holdings rose to a two-month high of 35.9 per cent, while equity holdings eased to a two-month low of 50.8 per cent. Property holdings rose to 2 per cent, their highest since June 2011. – Reuters