Invesco executive: 2014 to be a ‘year of active management’

While 2014 may see slightly diminished returns compared to 2013, an active approach toward portfolio management is likely to increase the opportunity for positive returns, the CEO of Invesco Fixed Income said Tuesday.

“This is going to be a year of active management,” Invesco’s Greg McGreevey said during a panel discussion.

Despite the potential for lower returns in 2014 relative to last year, “we still think this year is going to be a positive year for growth in many areas of the global economy,” McGreevey said. U.S. growth is expected to be higher than last year and above trend.  Growth in Europe stabilized in 2013 and is expected to increase in 2014, but will likely remain below trend.

McGreevey believes that inflation will remain below trend in almost all markets, with the possible exception of Japan.  Developed market interest rates are likely to remain below historical averages.

While global growth is expected to be slightly higher in 2014, many countries in the emerging world will hold elections in 2014 which could result in market uncertainty. Also, China remains an important market to watch as it implements measures to transition from an investment-driven to a consumption-led economy.

McGreevey spoke Tuesday before an invited audience of more than 100 financial professionals and business leaders as part of Invesco’s “2014 Global Market Outlook” panel, held at the company’s global headquarters in Midtown Atlanta.

For more information about Invesco, visit www.invesco.com. The opinions expressed are current as of 1/14/14, are based on current market conditions and are subject to change without notice.

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