Fund managers are at their most optimistic about global growth in six years, according to new research from Bank of America Merrill Lynch, and confidence is growing as investors dump low-risk assets and increase their exposure to equities and emerging markets.

According to the latest Merrill Lynch Fund Manager Survey, a net 7% of investors believe a global recession is likely in the next 12 months, down from 70% in April. The research also found that one third of respondents believe corporate profit growth will exceed 10% over the same period.