Fund managers are feeling more pessimistic about global growth and corporate earnings than at any point in the past 10 years – with the majority believing that the world is in recession. But, according to the survey of hundreds of investors from around the world, there are glimmers of hope with cash levels reaching new highs and a record number of investors saying that equities are undervalued.

The latest fund manager survey by Merrill Lynch, which the bank conducts every month, is one of the most pessimistic it has ever conducted, according to the company.