Pension fund managers are in bearish mood with some less optimistic about investment markets than ever before, according to consulting actuary Punter Southall, reports Professional Pensions.

The firm asked UK-based fund managers to determine the equity risk premium over one, two, three, five and ten years. About half the respondents said there was no extra gain to be had by investing in US, UK or European equities over bonds in the short-term. Over a ten- year period, up to 30% believed US equities would return less than US bonds.