A poll conducted by the Association of Investment Companies has revealed that 58pc of fund managers believe the FTSE 100 could break the 7,000 mark by the end of 2014. The poll reveals that Europe is the region which is expected to outperform next year, followed by the UK and the US as well as Asia Pacific (excluding Japan).
The fund managers polled represent one fifth of the value of the industry in terms of funds under management.
Annabel Brodie-Smith, Communications Director, Association of Investment Companies (AIC) said: “The West is very much in vogue with fund managers, perhaps not surprisingly given the volatility we have seen in Emerging Markets this year. Fund managers have chosen Europe as the top performing region for the second year in a row and the UK is back in favour, in sharp contrast to last year when it scored no votes with managers. Smaller companies are tipped as the top performing sector but blue chips are hot on its heels, reflecting managers division on this.
“Whilst none of us are blessed with a crystal ball, and no manager would ever claim to be able to predict the future direction of markets, it’s interesting to gauge manager views in the here and now. However, investment companies have weathered many ups and downs over the years, and will continue to do so in the future. Investors need to take a long-term view and have a balanced portfolio.”