Investors believe equities are at their most undervalued since the markets hit their low point in March last year, according to the latest fund manager by Bank of America Merrill Lynch, but pessimism on global growth is dampening expectations for the asset class.

A net 38% of respondents to the survey this month said that equities are undervalued, marking the largest proportion of fund managers to think so since March last year, when a net 42% said the same. Global equities markets hit a low point in that month but staged a strong recovery over the following months.