Your Basket
Your Basket
There are no funds in your basket. To add funds to your basket use the Green Plus Icon wherever you see it next to a fund.
Fund name
Aberdeen American Growth  
Fidelity American  
Schroder UK Mid 250  
M&G Recovery  
Jupiter Merlin UK Growth  
Close Basket Open basket

Login

Login
Password Reminder
Not Registered? Click Here

Register

Register
It's look like you're leaving us

What would you like us to do with the funds you've selected

Show me all my options Forget them Save them
Customise this table
You are here: Home
 

Investment barometer: UK investors look abroad for returns

Amid growing concern over booming demand for equity income stocks in the UK, some investors are starting to look further afield for their returns.

By Pascal Dowling, Group Editor, FE Trustnet Follow
Friday August 31, 2012


"With some exceptions, it appears that funds that operate in efficient markets such as UK Equity Income are unable to justify high charges, which appear to have a detrimental effect on performance. With information being so easily obtainable it is not clear what benefits an investor would derive by choosing a higher-charging fund, indeed it would be interesting to know exactly how investors’ money is being spent and how this is justified."
Oliver Clark-Williams, analyst at FE, bemoans the high cost of many UK Equity Income funds


"Everyone still seems to be going on about income, but as far as I’m concerned it’s now yesterday’s game. When you’re at the bottom of the cycle and these companies are cheap and are also paying a decent yield, you get a nice overall return, but now they’re anything but cheap."
Leigh Himsworth, manager of the CF Eden UK Opportunities fund, thinks equity income is yesterday's game


"July’s top-10 funds clearly show that investors' interest in seeking and exploiting opportunities from outside of the UK shorelines shows no sign of diminishing." 
Andy Parsons, head of investment research at The Share Centre, says investors are increasingly looking abroad for returns


"The Russian equity market is very close to historic lows in its valuation, both compared to its own history and to other emerging markets. This is in spite of the fact that the economy has been growing steadily since the crisis and has achieved record low inflation and unemployment levels this year." 
David Reid of the Eastern European Trust says Russia is the place to be


"It’s a developed market with high-quality companies that are quite likely to capture long-term structural trends, so investing now with a 10-year view could be a good decision. The drive to emerging market growth is relentless and a lot of Japanese companies are capitalising on growth in Asia in particular." 
Richard Troue, investment analyst at Hargreaves Lansdown, says Japan holds great promise


"The Russian market is currently trading at just 4.95 times earnings, putting it at a 49 per cent discount to the emerging markets average. We consider the scale of this discount to be wholly unjustified and believe that the market has rarely been more attractively priced." 
Robin Geffen, manager of the Neptune Russia & Greater Russia fund, says Russia is cheap 



 
Add your comment
Step 1: Tell us what you think...
 

Step 2: Prove you're not a robot...
You don't have to do this every time you submit a comment.

Login or register free and you won't see it again.
Enter the words above:
Step 3: Submit your comment...
 Submit
 
Be the first to comment on this Research Article.
Funds mentioned in this article

CF Eden UK Select Opportunities

View factsheet

Neptune Russia & Greater Russia

View factsheet

Groups mentioned in this article

Eden Financial Limited

View factsheet

BlackRock Invest Managers Ltd

View factsheet

Neptune Investment Management

View factsheet

Managers mentioned in this article

Robin Geffen

View factsheet

Leigh Himsworth

View factsheet

More Headlines

FE Research’s European fund-picks

GMT 12:00 | 18-May-2013

The cheap way to buy global companies

GMT 09:30 | 18-May-2013

 

Follow FE Trustnet

  •

Video Headlines

More Videos

Gray: Market rally has made me more bearish than ever

GMT 15:30 | 30-Apr-2013

From the analyst's desk

GMT 10:00 | 29-Apr-2013

 
Poll

Would you be concerned if a manager of a fund you owned took charge of another portfolio as well?

Yes

No

Vote

 
 
  • Stay connected with FE trustnet
  • Authorised and Regulated by the
    Financial Services Authority
  • © Trustnet Limited 2013. All Rights Reserved.
  • Please read our Terms of Use / Disclaimer
    and Privacy and Cookie Policy.
  • Data supplied in conjunction with Thomson Financial Limited,
    London Stock Exchange Plc, StructuredRetailProducts.com
    and ManorPark.com
What do you think about this toolbar?
Close permanently
Close for this session