Their overall allocation to equities rose to 53.2 percent, the highest level since August, while asset managers trimmed their bond holdings to 22 percent, the lowest level since July 2014. Cash was cut back to 5.5 percent, the lowest level since January 2013.

Within their global equity portfolios, fund managers raised their Japanese stocks allocation to 12.2 percent, hoping for further stimulus measures from the Bank of Japan.

On Dec. 18, Japan's central bank maintained its money printing drive, but also reorganised its massive stimulus programme, extending the duration of the Japanese government bonds (JGBs) that it buys.

"Any further quantitative easing from the likes of the ECB, Japan or China could stimulate further rises in their respective markets," said Peter Lowman, chief investment officer, Investment Quorum.

The Nikkei rallied in November, ending the month up around 3.5 percent, but it has fallen back during December and is down around 4 percent this month.

Asset managers also raised their allocation to euro zone equities slightly to 14.9 percent, while cutting their exposure to UK equities to 26.6 percent from 29.5 percent last month.

The UK stock market has underperformed its Japanese, European and U.S. counterparts in 2015, partly due to a heavy weighting of miners and emerging market-focused companies, which have been beaten down by low commodity prices.

FED RATE RISE

The poll was conducted between Dec. 14 and 21, a period in which the U.S. Federal Reserve raised interest rates by 25 basis points, the first rise since 2006. Fed chair Janet Yellen said the tightening process was likely to proceed gradually.

The majority of those who expressed a preference in the poll expected to see two or three further rate rises from the Fed in 2016, potentially attracting capital inflows to the United States.

"With the Fed carefully raising interest rates we might see a further repatriation of monies back to the U.S. in favour of U.S. treasuries and U.S. equities," Lowman said.

But Rob Pemberton, investment director at HFM Columbus, said the biggest risk to markets remained a U.S.-led global slowdown.

"Falling earnings expectations at a time of high valuations is a toxic combination for equity markets," he said.

Asset managers raised their North American bond allocations to 30.7 percent in December, the most since September. The exposure to UK bonds also leapt to 41.2 percent from 29.9 percent, the highest level since September 2014.

(Editing by Gareth Jones)

By Claire Milhench