The CIO of UBS’ wealth management arm foresees rising global growth in 2014 and beyond, especially in equities and credit, writes Patrick Brusnahan.

Following a cooperative stance from central banks over the previous year, which UBS expects to lead to growth, the CIO has adjusted its strategic asset allocation (SAA) to reflect the new market prospects. Highlighted was the importance of diversification in portfolios over the next five years. This means more favour towards equities, credit and diversified investments in hedge funds, rather than investing in liquidity and high-grade bonds.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Global GDP is predicted to rise 3.4%, the largest rise since 2010, led by the United States’ progress, which is the furthest along in its deleveraging strategies. As this continues, many of the markets which have been low in recent years, government bonds for example, should begin to normalise.

Two other areas, the Eurozone and Japan, were also examined. The Eurozone is expected to grow, albeit at a slower pace than the US, with room for expansion. On the other hand, Japan is an unpredictable prospect due to the recent reforms led by Prime Minister Shinzo Abe. Quantitative easing from the Bank of Japan is most likely going to weaken the yen currency.

When considering emerging markets, it was said that there would be ‘winners and losers.’ One of the more stable markets was China, whose inflation is ‘more under control’ than the rest. The country’s growth is expected to be reasonable and between 7.5 and 8%.

Global CIO Alexander Friedman said: "It makes sense for investors to take stock of some of the structural shifts underway and re-orient their strategic portfolio holdings."

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.