Global fund managers are less optimistic about the growth potential of equities, and are looking towards bonds for returns, according to a survey from HSBC.

In the third quarter of 2009, 50 per cent of fund managers surveyed were still overweight in equities however this has now fallen to a third in the fourth quarter of this year.

"While equities will continue to provide growth opportunities, investors are less likely to expect the returns they enjoyed from the sharp rebound in global markets in mid-year," HSBC Australia head of global investments Charles Genocchio said.

In November this year, HSBC surveyed 13 of the world's largest fund managers, which together had US$ 3.7 trillion in funds under management.

The survey found the managers have become more positive on bonds, with 56 per cent of respondents taking an overweight strategy towards this asset class in the fourth quarter, compared to only 30 per cent in the previous quarter.

"Bonds have performed strongly this year with the high-yield sector leading the way," Genocchio said.

"However, with continued economic uncertainty, investors may consider taking positions in the high grade corporate sector with short to medium tenors to reduce interest rate risk."

Although high yield and emerging markets bond funds saw the highest net inflows over the third quarter, there were also strong inflows in Asia Pacific, excluding Japan, and North American equity funds.

This is a sign the global economic recovery is broadening, HSBC said.

"In the third quarter of 2009, investors sought yield from bonds in a near zero interest environment, while selectively pursuing growth in equities in markets like Asia, which is emerging from the financial crisis faster," Genocchio said.