Invesco Perpetual fund managers comment on global investment prospects for 2010 Go compare with our comparison table

Invesco Perpetual fund managers comment on global investment prospects for 2010

21 January 2010 / by Rebecca Sargent

As 2010 sets in, Invesco Perpetual's leading fund managers comment on what's in store for markets around the world.

On the prospects of Global Equities for 2010, chief investment officer at Invesco, Bob Yerbury says: "Even after the recovery, aggregate world equity valuations are still attractive."

Commenting on the reasons behind this, he adds: "One important reason is that institutional investors, in particular, have shifted from equities to fixed income and alternatives assets. I think 2010 could well see some rebalancing of portfolios back towards equities."

On whether corporate bonds can repeat the strong performance seen in 2009 this year, Paul Read, co-head of fixed income at Invesco Perpetual comments: "Such a strong performance is unrepeatable in 2010. We think we will now enter a period in which bonds do indeed give 'bond like returns'."

Adding, "We do still see value in some sectors – bank debt offers good value. But, certainly, there can be no repeat of the strong gains of 2009."

On the prospects for Asian equity markets in 2010, Stuart Parks, head of Asian Equities said: "The rise in Asia Pacific (ex-Japan) equity markets in 2009 reflected a recovery from the oversold position of early 2009, easy global liquidity conditions and a recognition of the structural strengths of the region.

"Even after that rise, however, valuations are still reasonable," he adds.

"Given that valuation and earnings backdrop, the fundamental basis for continued market appreciation looks intact on a two to three year view, but the progress of equity markets, especially in Asia, is never smooth and there are three principle risks which I see for 2010," he warns.

With regards to emerging markets and the prospects for Brazil since it has become investment grade and will host the Olympics in 2016, Dean Newman, head of emerging markets at Invesco Perpetual said:

"Domestically, one of the most important transitions is from a high inflation and interest rate environment to one where both of these are low and stable.

"For companies, the ability to obtain finance at low long-term interest rates is a completely new development, which can drastically transform their financial structure. It allows a better balance between debt and equity finance, for example."

On Brazil's prospects he adds: "It is fair to say that these changes are still at an early stage. That means we remain convinced of the long-term strength of Brazil's equity markets.

Adding, "In the short term however, there are some warning signs. The weakness of the dollar during 2009 has started to put pressure on Brazilian exporters; and there is some uncertainty surrounding this year's presidential elections. But we would see these as temporary uncertainties in a long-term structural process of change."

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 Product NameISA OptionIncome YieldMore Info
Henderson Strategic Bondyes5.7%More Info >
Income Paid Quarterly. Investing in higher yielding assets which will include most types of fixed interest securities, this fund aims to deliver a quarterly income to investors. See latest fund factsheet for details.
Newton Asian Incomeyes5.43%More Info >
Income Paid Quarterly.The objective of the Sub-Fund is to achieve income together with long-term capital growth predominantly through investments in securities in Asia Pacific ex Japan (including Australia & New Zealand) region. The Sub-Fund may also invest in collective investment schemes. See latest fund factsheet for details.
Newton Higher Incomeyes5.4%More Info >
Income Paid Quarterly. The objective of the Fund is to achieve increasing distributions on a calendar year basis with long term capital growth. The Fund may also invest in collective investment schemes. See latest fund factsheet for details.
Invesco Perpetual Distributionyes4.7%More Info >
Income Paid Monthly. Invesco Perpetual Distribution offers a balance between both income and capital growth through investment in UK based equities and fixed interest securities. See latest fund factsheet for details.
Invesco Perpetual Monthly Income Plusyes4.46%More Info >
Income Paid Monthly. Popular income fund that aims to achieve a high level of income whilst seeking to maximise total return through investing in high yielding corporate and Government bonds, together with UK equities. See latest fund factsheet for details.
Woodford Equity Income Fundyes3.50%More Info >
Our selected partner for investing in Neil Woodford's Equity Income fund is Barclays Stockbrokers, via their INVESTMENT ISA for new ISAs and ISA transfers, or their MARKETMASTER® ACCOUNT for non-ISA investments. Income Paid Quarterly.The fund’s investment objective is to provide investors with long-term appreciation through investing in stocks primarily listed on the UK stock exchanges. Up to 20% may be invested in international companies. The income objective is 10% higher than the FTSE All Share Index yield with an anticipated annual yield of 4.0%.
Newton Global Higher Income yes4.7%More Info >
Income Paid Quarterly. The objective of the Sub-Fund is to achieve increasing annual distributions together with long-term capital growth from investing predominantly in global securities. The Sub-Fund may also invest in collective investment schemes. See latest fund factsheet for details.
Jupiter Merlin Income Portfolioyes3.10%More Info >
Income Paid Quarterly. To achieve a high and rising income with some potential for capital growth by investing predominantly in unit trusts, OEICs, Exchange Traded Funds and other collective investment schemes across several management groups. The underlying funds invest in equities, fixed interest stocks, commodities and property, principally in the UK. See latest fund factsheet for details.
M&G Global Dividendyes3.27%More Info >
Income Paid Quarterly. The Fund aims to deliver a dividend yield above the market average, by investing mainly in a range of global equities. The Fund aims to grow distributions over the long-term whilst also maximising total return (the combination of income and growth of capital). See latest fund factsheet for details.
Kames Strategic Bond yes2.95%More Info >
The primary investment objective is to maximise total return (income plus capital ) by investing in global debt instruments,denominated in any currency, ranging from AAA Government Bonds through to high yield and emerging market corporate bonds. At least 50% of the fund will be invested in sterling and other currency denominated bonds hedged back to sterling. See latest fund factsheet for details.
M&G Optimal Incomeyes2.44%More Info >
Income Paid Twice Yearly.The fund aims to provide a total return to investors based on exposure to optimal income streams in investment markets. The fund invests across a broad range of fixed income assets according to where the fund manager identifies value. See latest fund factsheet for details.
*Current Income Yields are Gross, Variable and Not Guaranteed
**Historic Yield reflects distributions declared over the past 12 months as a percentage of the mid-market price of the fund.
*** This is the target yield the fund aims to achieve per year, it is not guaranteed and could change according to prevailing market conditions. The target yield is net of basic rate tax.
Information correct as at 08/02/2012.

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