AXA Investment Managers' Richard Peirson believes the going will get much tougher for asset managers this year.
For this reason the manager, who runs a range of mandates including the Citywire Selection AXA Framlington Managed Balanced fund, has cut his exposure to the sector with Schroders among the victims.
Peirson also explains why he prefers government to corporate debt and why equities will struggle to replicate 2013's return, although he admits merger & acquisition activity could prove to be the 'wildcard' in 2014.
Citywire AA-rated Peirson has managed the Balanced Managed fund since 1992. In the 10 years to the end of 2013 the fund had returned 151.9% versus a 92% rise in the LCI UK Balanced & International index.