The survey revealed that 70 per cent of investors have improved their sentiment towards Europe since the start of 2013, while 30 per cent said that slower growth in China was their biggest concern.

The study was conducted as part of the private bank’s recent Investment Insights series, between September to October 2013, across 16 cities in Europe, with more than 600 ultra high net worth and HNW investors. Respondents were polled on their views on key risks for the next 12 months, investment sentiment and their anticipated portfolio positioning.

When asked which asset class will outperform over the next 12 months, 48 per cent said equities. Meanwhile, 28 per cent of those polled believe private equity to be the other asset class winner over the next year. The remaining 24 per cent were split between hedge funds (9 per cent), commodities (6 per cent), high yield (5 per cent) and core fixed income (4 per cent).

UHNW and HNW investors in Spain, the UK, France, and Switzerland were found to have the most optimistic outlook towards equity markets, with 70 per cent, 57 per cent, 48 per cent and 47 per cent, respectively.

Half (50 per cent) of investors polled believe that European markets will be the best equity market performer, in contrast to the same time last year when sentiment towards the region was below 30 per cent.

According to the current survey, the US is still thought to be a strong equity market to invest in next year (23 per cent), particularly for UK investors (31 per cent).

More than 45 per cent of investors have seen an improvement in Europe and as a result added European equities to their portfolios, with investors based in Munich (68 per cent), Madrid (60 per cent) and Hamburg (59 per cent) having done so most aggressively.

“Investors are concerned after China’s growth slowdown this summer, which was driven by tightening in social funding. But China is now back on track to achieve 7 to 8 per cent growth during the next couple of years, thanks to a recovery in economic activity in developed markets," said Cesar Perez, chief investment strategist for JP Morgan Private Bank in EMEA.

"Historically equity markets have performed well in the early stages of rising rate environments, so we agree with investors and see potential for this asset class to outperform over the next year. We also believe the euro area to be at the onset of an improvement in hard data, such as retail sales. Given higher operating leverage in Europe, even a small increase in growth can translate into improving operating margins and earnings next year," added Perez.