Fund managers turn more cautious about the growth of equities after the worrying signs for the global economic growth, according to a poll conducted by Merrill Lynch.

The poll of 324 fund managers that were surveyed between April 4 and April 10 showed that the majority of managers give their preferences to cash and are not sure whether the equity market is strong enough to withstand the pressure from economic growth and corporate profits slowdown.

“Instead of a world of positive growth surprises, we are moving into a world of negative growth surprises,” said David Bowers, Merrill’s chief investment strategist.

The 20% of those surveyed said they expect slowdown for the economy in the next 12 months. About 52% of respondents said that corporate profits would deteriorate over the next 12 months – worse figures compared with March poll. Fifty-nine percent said they were overweight in equities and some 68% underweight in bonds, the survey showed.