By Jenne Mannion A survey of some of the UK's top fund managers shows that most expect the ...
By Jenne Mannion
A survey of some of the UK's top fund managers shows that most expect the FTSE 100 will close the year higher than its current level of around 5700.
The most bullish of the fund managers is Jon Thornton, head of UK equities at Aberdeen Asset Management, who expects that the market will close at 7250, provided the UK does not slip into recession.
He said: "The continued no boom-no bust environment seems the likely scenario."
Meanwhile, Thornton said in terms of valuations UK equities remain extremely attractive relative to gilts and offer good value on an international perspective.
Richard Buxton, UK Growth fund manager at Baring Asset Management, and David Rough, group director of investments at Legal & General, are also bullish, expecting the market will close at 7200.
They expect the FTSE to reach a level that exceeds its highest peak yet of 6925, reached in December 1999.
But at the other end of the scale, Justin Seager, UK fund manager at Jupiter, is most bearish, due mostly to concerns about the US economy and the impact that it will have on earnings growth in the UK.
The fund manager estimates follow recent rocky markets whereby the FTSE looked on course for the largest one-day drop since the crash of 1987, by tumbling more than 4%. London shares are now at 20% below their end of 1999 peak.
Of the 13 fund managers surveyed, the level tipped most frequently is 6300, which is expected likely by David Gasparo of Schroders, Mark Tyndall of Artemis and Richard Urwin of Gartmore.