A study by Bank of America (BofA) Merril Lynch showed that more than half of fund managers said they were overweight in their allocation of global equities.
This figure is the highest seen in the survey since July 2007 and is due to rising investor confidence in the global economy and corporate profits, the report revealed.
More than half said they predict the global economy to become stronger during 2011 while more than a third anticipate above average growth.
Over half of the fund managers questioned also think that corporate profits will rise by ten per cent in 2011, the survey revealed.
Gary Baker, head of European Equities strategy at BofA Merrill Lynch Global Research, said: âThe combination of growth optimism and a benign view towards higher inflation provide a potent case for equity investment.â
Nearly 200 fund managers responsible for managing $562 billion assets under management were questioned as part of the survey.
By Jim Ottewill