Schroders and Fidelity see equity opportunities in 2013

According to Schroders head of global and international equities, Virginie Maisonneuve, global equities are attractively priced and could perform well in 2013.

Masionneuve said: “There are abundant opportunities for investors to exploit but it may require a change in mind-set from the previous decade.” She added that progress in Europe, the end of China’s growth slowdown and continued momentum in the US economic recovery will support global equities. “Equities are historically cheap versus bonds, and if the ‘near death experience’ of the global financial system is behind us, we can now contemplate a rocky path to normalisation. Longer-term, investors must position themselves for the reality of a growth-saturated world in which sustainable growth and innovation will become the primary drivers of performance.”

Separately, Anthony Bolton, manager of the Fidelity China Special Situations fund, said that relatively low equity valuations and poor sentiment should help as equities climb their wall of worry. On China, Bolton said the country was at an interesting juncture and added: “This is a market that can turn on a sixpence, and I would be very surprised if 2013 is not a much better year after an ‘A’ share bear market that has lasted over 3 years.”