Investors showed an increased preference for the fixed-income market last month, amid heightened uncertainty about global economic movements, according to Dresdner RCM Global Investors Asia. Fears of a crisis in Russia's economy and growing concern about the future of Latin American economies has prompted a flight to safety. Dresdner director Mark Konyn said there had been a general drift out of equity markets worldwide last month as Russia teetered on the brink of disaster and growing prospects of Brazil, the world's eighth-biggest economy, defaulting on loans. 'I think overall these are the sorts of trends we are seeing, it has gathered momentum during the last month,' said Mr Konyn. A confidence crisis among consumers had significantly affected all aspects of retail behaviour, including investment markets, he said. 'Investors are looking towards bonds for stability and incremental return. In an environment where things are uncertain, fixed income is going to give less risk and some prospect of capital appreciation compared with cash.' Bonds would continue to outperform cash over the next 12 months because they were a more attractive option in a deflationary environment. On a sectoral basis, Dresdner said its funds remained underweight in banks around the world. Banks were most exposed to corporate and sovereign debt defaults, which was expected to rise over the next 12 months, said Mr Konyn.