Improvement across asset classes predicted
The stabilisation of the global economy in 2014 will see a jump in private equity buyouts, while fostering "slow-but-steady" fixed income and equities growth, an investment manager predicts.
Looking at how economic conditions will affect asset classes in the new year, global investment manager Neuberger Berman told investors to expect moderate growth across several portfolios in the next few months.
Equities should see "modest" earnings growth, according to the firm, while fixed income is expected to slowly attract returns.
"In my view, we're probably in the middle innings of this growth phase in the US," Brad Tank, Neuberger Berman's chief investment officer, fixed income, said.
"Things are getting better, but not rapidly. For the coming year, we anticipate a relatively benign growth environment, with continued momentum in the US, a modest acceleration in Europe and an 'Abenomics'-driven recovery in Japan, offsetting China's slower growth trajectory."
Improving conditions should also see more private equity buyouts, Anthony Tutrone, the firm's global head of alternatives, said.
"At this point, we haven't gotten to a major acceleration in buyouts, but we believe deals will begin to pick up," he said.
AUTHOR
Staff Writer
Recommended for you
GQG Partners has completed the acquisition of the minority interests held by Pacific Current Group in three affiliates which will form its new Private Capital Solutions division.
The wealth management firm has unveiled a new fund in partnership with investment specialist Partners Group, describing the investment solution as an “alternative” to traditional alternatives.
Fidante affiliate NovaPort Capital has announced the closure of its small cap and microcap funds, citing expected declining flows.
T. Rowe Price believes Australian growth is successfully managing to shrug off consumer weakness, but the firm’s multi-asset team is not yet positive enough to increase its underweight position.
