A net 72% of the 180 managers surveyed (who together run $516bn of assets) now expect the world’s economy to pick up over the next 12 months – the survey’s strongest reading in nearly four years and up 20% from July’s figure.

Over half of respondents identified the hard landing in China as the biggest tail risk, although a net 32% of managers expect China’s economic growth to be weaker, an improvement from a net 65% last month.

European managers have also become more bullish. A total of 88% of managers now anticipate the region strengthening in the year ahead, twice the level recorded last month.

A net 54% have gone overweight equities, with a similar number (57%) taking an underweight position in bonds.

Average cash holdings fell slightly from July’s year-high level, but remain at 4.5%.

“While global growth expectations have risen very rapidly, the good news is that cash levels remain high,” said chief investment strategist Michael Hartnett. “Out-of-favour emerging markets offer some enticing opportunities to deploy these balances.”