View more on these topics

Buxton says FTSE 100 won’t break out of the 6,000 level

Schroders head of UK equities Richard Buxton says it is unlikely that the FTSE 100 will break meaningfully above 6,000 over the next 12 to 18 months.

In January, Buxton, who manages the £2.5bn Schroder UK alpha plus fund, predicted that the FTSE 100 would rise by 25 per cent in 2011. The FTSE averaged 5,975 in January.

At the Cofunds investment forum, Buxton said: “It seems the floor right now is 5,000 and I am highly impressed that it has been resilient at that level but the prospect of breaking meaningfully above 6,000 any time soon seems rather remote.” He said the market is pricing in the collapse of companies. He said: “A lot of cyclical stocks have halved and companies have halved earnings expectations for 2012. Companies are saying to us that it is still tough out there but it is not that bad, so it is not as bad as some share prices seem to suggest at valuations of nine times earnings.”

Buxton is sticking with his conviction in UK banks, as he says he expects them to be trading at one and a half times book value, up from the current trading value of half book value.


European markets make early gains

European markets have bounced back from yesterday’s losses to make small gains in early trades on Thursday. At 9.30am, the FTSE 100 was up 0.7 per cent to stand at 5173.66, while the German Dax and the French Cac 40 are both up over 1.5 per cent. The news comes as Italian prime minister Mario […]

CML says quality won’t be in danger

The Council of Mortgage Lenders says the mortgage indemnity scheme will not compromise the quality of lenders’ mortgage books. Housebuilders and the Government will absorb 3.5 per cent and 5.5 per cent of any losses respectively if the borrower, who must put down a 5 per cent deposit, defaults and the house price has fallen. […]


Cofunds restructures to allow dividend payments

Cofunds is preparing to free itself to pay dividends to shareholders after recording profits for the third consecutive year. The platform provider has filed papers at the High Court in London as it seeks to address an “accounting legacy” which prevents the payment of dividends. A Cofunds spokeswoman says: “Cofunds has made profits for three […]

Global equities: time to de-risk?

While equity valuations have doubled since the financial crisis, Simon Edelsten explains that there are still pockets of value. But not where you might think Macro-economic uncertainty is causing turbulence in equity markets. Artemis Global Select Fund manager Simon Edelsten says his investment themes are taking him in a different direction to some of his peers – away […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm