Asset managers’ appetite for risk has hit a near-record low as fears return that the credit crisis will continue for longer than expected, according to the latest monthly survey by Merrill Lynch.

The bank's poll of fund managers found risk appetite had fallen close to the record low seen in March, while a record 53% of them said they were overweight in cash and 40% are underweight equities. Karen Olney, chief European equities strategist at Merrill Lynch, said three horrors were bugging investors: "A rising oil price, the slowing economic cycle and the credit crisis."