Investment prospects looking brighter for 2010

Thursday, 17 December 2009 12:00

The New Year is looking positive for investors with equities performing well and the FTSE closing on a high in 2010, say the UK's top fund managers.

A poll of investment company fund managers, representing more than £17 billion of assets, has tipped emerging markets as the best performing region in 2010.

And they predicted that resources, including oil, were likely to outperform in the New Year in the survey conducted by the Association of Investment Companies (AIC).

But while 50 per cent of fund managers named equities as the best performing asset class in 2010, many thought gold would be the top performer.

Annabel Brodie-Smith of the AIC said: "Interestingly, this year's 'gold rush' is tipped to continue with over a quarter of managers predicting that gold will be the top performing asset."

The optimism by fund managers extended to the FTSE, with 58 per cent predicting it would close in 2010 between 5,500 and 6,000. Five per cent of those polled were a little more pessimistic forecasting the FTSE would end between 2,000 and 2,500, however.

And when it came to the recession just 22 per cent raised concerns about it continuing in 2010. Last year it was the fund managers' greatest concern.

Meanwhile 29 per cent thought there would be better global growth than expected and 23 per cent predicted interest rates would remain low.

Ms Brodie-Smith added: "Whilst it's interesting to gauge the views of investment professionals, markets are impossible to predict and one year's best performing region can sometimes be the following year's worst performer.

"So it's important to take a long term view, ensure you have a balanced portfolio and not to get carried away by the latest 'hot' sector."

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