IFAs tip FTSE 100 to rally in 2015

09 February 2015

  • Advisers predominately anticipate modest gains for the FTSE 100 in 2015
  • Advisers back US equities and UK mid-caps to outperform in the year ahead

Financial advisers expect the investment landscape in 2015 to be largely positive, forecasting positive performance for equities generally and modest gains for the FTSE 100, according to new research from Prudential1.

68 per cent of financial advisers expect the FTSE 100 to end the year higher than it started, according to the survey of UK intermediaries. The most common view is cautious optimism, with over a third (36.1 per cent) anticipating rises of up to 5 per cent. However, a significant group (11 per cent) are more bullish, expecting the index to rise by more than 10 per cent.

Overall, advisers expect the US market to drive greater returns than the UK. A quarter (25 per cent) of financial advisers expect that US equities will deliver the best performance in 2015, followed closely by 19 per cent who favour UK mid-caps. UK blue chips and emerging markets are also expected to perform well, favoured by 14 per cent and 11 per cent respectively.

Advisers are most apprehensive about the bond markets, with only 3 per cent expecting corporate bonds to deliver the highest returns in 2015.

Andy Brown, investment expert at Prudential, said: “While advisers are generally feeling quite upbeat about the year ahead, and are feeling particularly confident about the UK and the US, with a general election looming, the UK market could display episodes of volatility as investors react to short-term political news.”

“The majority expect the FTSE 100 to end the year better than it began, as it has done for four of the past five years.

“Though it’s interesting to look at the potential investment hotspots, the importance of a well balanced portfolio should not be underplayed in the presence of persistent volatility.” 

Notes to editors

1 PollRight interviewed 120 IFAs online on behalf of Prudential between 31.12.14 and 9.1.15

Which asset class do you believe will perform the best in 2015? 

Class Percentage of advisers
US equities 25%
UK mid-caps 19%
UK blue chips 14%
Emerging markets 11%
UK small caps 9%
European equities 6%
Gold 5%
Commodities 4%
AIM stocks 3%
Corporate bonds 3%

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