As investors prepare for the new challenges and opportunities in the year ahead, Citywire Global has canvassed which areas fund managers will also be avoiding.
Here we have collated the views of five leading managers from across equities and bonds to find out what their ‘no go’ zones for 2014.
Chris Bullock, Henderson Global Investors
We’ll be avoiding the 'weakest link' issuers - as conditions get hotter, deal quality will inevitably drop, and there will be some new issues to avoid as the year progresses.
André Köttner, DeAWM
We are avoiding firms that rely heavily on capital and where there is no organic growth. We are underweight telecoms and utilities that are also high in debt.
Mark Dowding, BlueBay
I plan to avoid French bonds next year. There are other sovereigns such as Belgium I see as a better credit. While no collapse in France OATs should be expected any time soon, the country is a structurally deteriorating credit which trades at a tight spread versus Bunds.
Carsten Hilck, Union Investment
We would continue to avoid banks and also utilities due to lack of political support the latter sector has.
Andreas Zöllinger, BlackRock
We’re still avoiding the highly cyclical sectors, and sectors with very low dividend visibility - think about the utilities sector, large parts of the banks, the auto sector, the mining sector. None of these are really looking attractive to us from a dividend perspective.