ING Investment Management predicts greater divergence of key investment themes in 2010

ING Investment Management Europe announced at their Annual Outlook Conference in London that it expects to see greater divergence in macro, market and sector themes.

“Our core investment theme is that investors will seek high, sustainable growth complemented by yield support in what we expect will be a low-growth, low return world,” said Eric Siegloff, Head of Strategy and Tactical Asset Allocation at ING. He added that: “The importance of yield in a low-return environment leads to a preference for large capitalisation, quality, high dividend strategies in equity markets and higher-rated spread products in fixed income markets.”

The asset manager believes the biggest risks facing the markets next year will be associated with the withdrawal of quantitative easing, the move to higher policy interest rates, oil price volatility, impetus for financial sector regulation and how governments manage fiscal policies.

ING says these overarching themes and risks may have a significant impact on equity and fixed income markets, resulting in higher volatility from current levels.