More than half of investors believe the global economy will improve in the year ahead, according to BofA Merrill Lynch's February Fund Manager Survey. February marks the fourth month in a row of surging investor sentiment.

Thirty-nine percent of the panel said profits worldwide will improve in the coming 12 months, up from a net 29 percent in January. Forty-eight percent of investors said higher capital expenditures is the best use of corporate cash. This was the highest reading since April 2011.

Investors continue to perceive value in equities in light of the strong market performances of early 2013. A net 13 percent of global investors still say equities remain under-valued. At the same time, a net 82 percent say bonds are overvalued, the second-highest level recorded by the survey with the highest coming at the peak of the European sovereign bond crisis in 2012.