(Bloomberg News) Investors began to put cash back to work in January, buying U.S. stocks, as expectations for global growth climbed to a six-month high, a Bank of America Corp. survey showed.

A net 27 percent of the 214 respondents, who together manage $655 billion in assets, said they were overweight cash. That's down from a net 35 percent in December. Asset allocators became the most bullish on American equities since April 2010, with the U.S. replacing emerging markets as their most favored region for equities.

"We have started the new year with investors much less pessimistic on global growth," said Gary Baker, BofA's head of European equity strategy at a press briefing in London. "This has translated into greater risk appetite. The U.S. has shown fairly consistent improvement, largely exceeding expectations."

The MSCI All-Country World Index has advanced 2.9 percent so far in 2012, heading toward its highest close in 10 weeks, as U.S. data and declining bond yields across the euro area's peripheral nations tempered concern that the region's sovereign- debt crisis will derail global growth. The gauge lost 9.4 percent last year.

Expectations for global growth jumped in January to 44, the highest reading since July, the survey showed, prompting asset allocators to shift into stocks and commodities from cash and bonds.

Overweight U.S. Equities

Within equities, 28 percent said they were overweight U.S. stocks in January, up from 20 percent in December. Emerging markets were the next most popular region with 20 percent of respondents holding more than the benchmark. European, U.K. and Japanese stocks remained out of favor.

"There is still some residual caution among investors," said Baker at the press briefing. "As much as they have seen an improved outlook for growth, it has not really come into real evidence in terms of risk appetite."

BofA's risk and liquidity indicator rose to a six-month high of 35 in January, up from 31 in December, though lower than the long-term average of 40.

Some 12 percent of respondents were overweight global stocks, compared with 8 percent in December, while 5 percent were overweight commodities from 2 percent. Investors' underweight of bonds increased to 34 percent, compared with 27 percent at the end of 2011, according to the report.

The global fund manager survey took place from Jan. 6 to Jan. 12.