Investors are decidedly more nervous about today's economy and the belief that a global economic slowdown will occur in the next 12 months is prevalent, according to Bank of America-Merrill Lynch.

In its latest survey of fund managers, the bank discovered that 11% of the panel interviewed believes the economy could deteriorate this next year, making it the weakest reading since December 2011. It also shows deterioration from last month when 15% of the panel believed the economy would strengthen.

"The outlook for corporate profits has suffered a similarly negative swing," Bank of America-Merrill Lynch said. "A net 19% of the panel believes that corporate profits will fall in the coming 12 months. Last month, a net 1% predicted improving corporate profits."

The risk and liquidity composite indicator fell to 30 points from an average of 40, based on the survey results, and asset allocators are now moving to "net underweight positions in global equities and increased bond allocations," BofA-Merrill Lynch said.

The survey is based on the opinions of 260 fund managers who had about $689 billion of assets under their management during the survey panel.