Investment company managers representing £37bn in assets under management took part, accounting for over a quarter of the industry by assets.
Only 60% of managers questioned said they expect markets in general to rise next year, compared to 91% last year.
Just over half (52%) expect equities to outperform other asset classes next year. A significant number of managers seem to be a looking elsewhere with 10% thinking gold could outperform, 10% saying commodities and natural resources and a further 10% pointing to commercial property as the likeliest star of 2016.
In geographic terms Europe came out on top with 32% saying it is their most favoured region, while smaller companies were the most popular sector both on a short-term and medium-term basis.
Focusing on UK equities, managers are much more cautious this year than last. While 88% of managers expect the FTSE 100 to close next year higher than it stands now, only 22% of those quizzed expect the the index to close 2016 above 7000 compared to 48% last year.
“This year investment company managers are more cautious in their optimism for equities,” said Annabel Brodie-Smith,” AIC communications director. “The majority still expect equities to outperform but it’s interesting to see that there are some contrarian views with some tipping asset classes like gold and commodities to do well next year. Europe and smaller companies remain very much in vogue for 2016, but the US has fallen out of favour over the short-term perhaps with election concerns beginning to emerge.”
