Old Mutual Global Investors’s new head of U.K. equities, Richard Buxton, said the FTSE 100 Index may break 7,000 next year as the market enters a bull phase.
Buxton, who joined Old Mutual from Schroders Plc in June, said in a presentation to journalists in London yesterday that valuations were supportive of “good returns” over the next 10 years. He said the index may climb as high as 6,800 this year and 7,300 in 2014, a 13 percent gain from yesterday’s close.
The FTSE 100 has risen 11 percent this year, touching a 13-year high of 6,840 on May 22, as central banks around the world said that interest rates will remain low for a prolonged period.
Old Mutual has 13.5 billion pounds ($21 billion) in assets under management. Schroders Chief Executive Officer Michael Dobson said last month that clients had pulled about 1.5 billion pounds in the second quarter from the fund Buxton managed.