The survey also found that the majority of funds were negative on world growth prospects over the same period, pointing to the fact that most believe the asset class is the best strategy in difficult markets.

According to the survey, 59 per cent of funds said they intended to increase their private equity allocation. Perhaps more remarkable is the fact that funds appear to be moving away from traditionally safer assets like fixed income towards riskier assets such as hedge funds and equities.

Only 17 per cent said they would increase their fixed income allocation, compared to 39 per cent who intend to buy more equities and 47 per cent who plan to add more hedge funds to their portfolios.

Very few funds were optimistic on world growth prospects over the next six months, with 58 per cent indicating they were pessimistic about the economic outlook. More than 30 per cent of funds are neutral on world growth prospects, with only 10 per cent optimistic.

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