About half of fund managers polled expect a weaker global economy in the next 12 months, according Merrill Lynchs Survey of Fund Managers for June. That percentage, says the firm, is the most pessimistic view in six years last month, only 14% held that view. In addition, one in three surveyed expects corporate profits to deteriorate, up from 9% last month. Given current market conditions, cash levels rose from 4.1% last month to 4.5%, according to the survey, with 29% of fund managers describing themselves as overweight cash. With fears that central banks may be hawkish to keep inflation at bay, fund managers have responded with a textbook country rotation, in which U.S. stocks have proved far more resilient to stock market turmoil than either emerging market or Japanese equities, says Merrill Lynch.