Investment managers remain bullish on the financial markets despite equities' roller-coaster ride this summer and the subprime mess, according to Russell Investment Group's third-quarter Investment Management Outlook.

About 85% of the more than 340 respondents consider stocks fairly valued or undervalued. “The most basic attitudes of investment managers toward U.S. equity markets have not significantly eroded,” says Randy Lert, chief portfolio strategist, Russell Investment group, according to the survey taken between Aug. 27 and Sept. 4.

Still, interest in fixed-income investments soared. Bullishness for corporate bonds more than doubled to 31% from 15% in the second quarter. High-yield bonds increased to 21% from 12%, while U.S. Treasuries recorded one of the most bullish scores of the past 14 quarters, increasing to 33% from 19% in the same periods a year-earlier.