Markets backed by liquidity: Schroders

Seoul GLOBAL equities might achieve a 10-13 per cent return in 2015, said Alex Tedder, head and chief investment officer (CIO) of global and US equities at fund manager Schroders.

This comprises a 7-10 per cent earnings growth and 3 per cent of dividend yields, he said at a media briefing on Friday.

"Liquidity is there and will support markets. Government policy is supportive of rates. There is no reason for equity markets to de-rate," he said, noting that a 10-13 per cent return is achievable if earnings ratios stay at current levels.

However, he acknowledged that valuations are high globally. Only one market - Japan - looks cheap relative to its 10-year history, he said.

Yet against bonds, equity valuations do not look too bad. Dividend yields are still higher in many markets than their respective bond yi…