The US is the top equity region for the first time in five years, according to the Bank of America Merrill Lynch (BofAML) August Fund Manager Survey. 

Average cash balance climbed to 5.0 percent this month, from 4.7 percent in July and still above the 10-year average of 4.5 percent, whilst allocation to US equities rises 10ppt to net 19 percent overweight, the biggest OW since January 2015. 

When asked about regional expectations for corporate profits, a net 67 percent of respondents found the US to be the most favourable region, a record 17-year high.

A trade war remains the tail risk most commonly cited ...