Some 58% of managers (58%) surveyed by the Association of Investment said the UK’s blue-chip index will surpass 7,000 next year, a dramatic change from last year, when no managers expected the FTSE 100 to break through the 7,000 barrier.

On the whole, investment trust fund managers are optimistic about the outlook for markets next year, with 84% expecting markets to rise in 2014.

Europe is most hotly tipped to outperform, with 24% of managers backing the region. The UK is in second place, favoured by 19% of managers.

The US is in joint third place with Asia Pacific excluding Japan each garnering support from 14% of managers. Despite the strong performance of Japan in 2013, it is only expected to be the best performing region next year by 10% of managers, compared to 8% last year.

Annabel Brodie-Smith of the AIC said: “The West is very much in vogue with fund managers, perhaps not surprisingly given the volatility we have seen in Emerging Markets this year. Fund managers have chosen Europe as the top performing region for the second year in a row and the UK is back in favour, in sharp contrast to last year when it scored no votes with managers.

“Whilst none of us are blessed with a crystal ball, and no manager would ever claim to be able to predict the future direction of markets, it’s interesting to gauge manager views in the here and now.”