Buxton sounds bullish note on UK market rally

Michael Bow
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VETERAN fund manager Richard Buxton has spelled out an ultra-bullish vision for the UK economy next year, tipping blue chip stocks to soar past record levels.

The former Schroders stalwart, who left the business for rival Old Mutual Global Investors in June, said the FTSE 100 would top 7,300 next year – rallying past its previous dotcom era high of 7,000.

Buxton also said the UK economy was in ruder health than official statistics suggested, and said official GDP growth figures could be revised upwards.

The FTSE is already enjoying a stellar run this year and has risen 11 per cent so far. It nudged a 13-year high of 6,840 in May but Buxton thinks it still has further to run.

The bullish views were aired in a briefing ahead of a tour by the fund manager to meet financial advisers around the country.

Buxton shocked the city in June when he announced he would leave Schroders after 11 years to take over as head of UK equities at Old Mutual.

He is considered one of the most astute stock pickers in the market, and has consistently outperformed stock benchmarks over his 26-year city career.

Buxton also joined a growing call in the city for the UK to exit the European Union. He said the argument that British businesses would lose out were “misguided”.

“They would be better off if Britain were to leave,” he said

Buxton has taken control of the newly launched Old Mutual Global Investors UK Alpha Fund, which has pulled in £250m since he joined.