Sentiment towards Europe has picked up in the wake of recent monetary policy easing by the ECB, while investors are increasingly sure of a rate hike by the Fed in spring 2015, according to the BofA Merrill Lynch Fund Manager Survey for September.

While Scottish independence threat has deepened negativity towards U.K. stocks as opinion polls indicated the referendum was too close to call, said BofA-ML. The UK has entrenched its status as the world's least popular region among asset allocators this month. A net 16 percent of the panel is underweight UK equities, it said.

"Looking ahead, the UK is the region that global investors most want to underweight in the coming 12 months - with a net 14% of those surveyed expressing that view," said BofA-ML.

Furthermore, a net 20% say that the UK has the least favorable profit outlook, up from a net 12% in August. Investors have not markedly changed their view on sterling valuation, however, it added.

Further BofA-ML said sentiment towards Europe has picked up in the wake of recent monetary policy easing by the ECB, while investors are increasingly sure of a rate hike by the US Fed in spring 2015.