Wealth management industry figures attending the WealthMatters conference in Singapore pondered the outlook for equities and other markets amid growing expectations that the monetary taps will be turned off.

A large turnout braved early morning downpours to make their way to Raffles Hotel for WealthMatters Singapore 2013. Coutts & Co was the headline sponsor for the event.

A selection of high-profile speakers from the wealth management industry discussed a broad range of subjects from whether equities will be the most important asset class in 2014 to client experience and reporting and perhaps one of the hottest topics at present: how regulatory pressures affect wealth management models in Asia.

Such a debate happened against a background of some sharp market movements in recent weeks, such as the sharp fall in the value of the Indian rupee and concerns that, as the US Federal Reserve turns off the monetary taps amid signs of stronger US growth, this will force some countries to painfully adjust, if only in the short run.

In the first session of the morning, the panel ruminated on the prospects for equities next year. Andrew Barrett,  managing director at Citi Private Bank, - he kicked off the discussion - held the view that 2014 would see a shift, as economies normalise, back into equities, along with potential interest rate rises in 2014/15.

Barrett also said global growth will continue to climb, albeit at a more sedate pace. He thought there was a general consensus that this view is widely held. However, he also mentioned that the consensus of views was, perversely, also in itself a potential risk.

Andrew Hendry, who is managing director for M & G Investments, a firm with $350 billion under management, said the equity dividend strategy many investors have followed and continue to rely on for yield has now become an overly expensive approach. Hendry said that better value and robust performance could be found in unfamiliar places such as European small-cap stocks where there have recently been solid returns. He stated that the emerging markets in his view are currently still too precarious for him.

The Bank of Singapore chief economist Richard Jerram held a differing view to the others on the panel. He is convinced that the US Federal Reserve will begin tapering soon – reducing its quantitative easing programme - and that the US Treasury bond market could be the most important space to watch in 2014. With regard to the equities markets for 2014 he was only keen on the established markets. Jerram was also particularly bearish on the medium to long term prospects for gold mentioning a figure as low as $900.   

Wrapping up the first morning session, Marco Kaster, who is investment director at Stanley Gibbons Asia, pointed to impressive growth numbers and lack of any volatility as a reason to look at rare stamps, coins and other premium collectables. These assets should not necessarily replace equities in 2014 but complement them, he said.

Kaster shared with the audience that during the global financial crisis the GB 250 rare stamp index increased by a whopping 38 per cent.

(Editor's note: Further summaries of panel debates at the event will be added to this website in due course. On behalf of ClearView Financial Media, thanks to all who attended this informative and enjoyable event.)