Equities will deliver the best performance over 2013 and investment grade credit the worst, according to Aon Hewitt’s fund manager survey.

The 120 fund managers with £10trn under management surveyed rated equities in various regions as promising. Global equities were most tipped, forecast to be the top performer by 31 per cent of those polled, ahead of emerging market equities, favoured by almost a quarter (24 per cent) despite a weak start with falls in the first quarter of the year. European equities were more divisive, being fourth most commonly cited by investors as a potential top performer and as potentially the weakest investment in the coming year.

Investment-grade credit (named by 32 per cent as most likely to deliver the weakest returns during 2013) and inflation-linked bonds, named by 14 per cent despite strong returns year to date, were least favoured by the managers.

According to the consultant, the survey’s preliminary results showed pension funds’ investment strategies need to remain agile. Aon Hewitt global head of asset allocation Tapan Datta, said the expectations showed managers predicting a repeat of past years when performance in the first quarter is reversed later on.

“In recent years, some big moves in the first quarter have been turned upside down as the year progresses,” he said. Conflicting views on the outlook for European equities were also striking, he added.

“Markets have always been subject to fluctuation over time, creating opportunities for investors to make returns on their investment. However, the results of this survey reveal just how quickly the outlook for asset classes can change. While pension funds are long-term investors and we do not necessarily encourage a short-term view, this data does highlight the need for pension funds to monitor fluid market conditions and to be able to move swiftly where necessary.”

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