Asset managers are allocating more to equities globally than at any point in over two years, but fresh concerns about a sovereign debt crisis in Europe are keeping investors bearish on stocks in the region.

According to the latest Bank of America Merrill Lynch fund manager survey, 57% of investors are now overweight equities - the highest number in more than two years. Overweight positions indicate that investors have allocated a greater percentage of their portfolio to an asset class, compared to the strategy benchmark.