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.
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