Schroders UK equity fund manager Richard Buxton has rejected criticism that fund managers always issue positive outlooks, saying sometimes the market consensus is actually right.
Buxton, who has predicted the FTSE 100 will rise by 25 per cent in 2011 in several statements in recent weeks, was speaking at last week’s Joint Investment Forum hosted by Schroders, M&G, BNY Mellon and Gartmore.
He said: “It is not the case that all fund managers are positive, there are some incredibly negative fund managers out there and good luck to them.
“We have made gains of about 7 per cent already this year and even most investment bank strategists are saying we can make 18 per cent this year.
“The consensus is not always wrong and we could still have a reasonable year.”
Buxton says a lot of equity investors are nervous, as they have been forced into the asset class due to the fact that cash and government bonds are delivering lacklustre returns.
He is standing by his bullish views for 2011 on his £2.3bn Schroder UK alpha plus fund.
Buxton says the biggest risks to his positive outlook are a sudden hike in interest rates in the UK, a surprise slip back into recession or a reverse of the recent improvements in the US labour market.