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Don’t panic

When a correction takes place after a substantial rise in world stockmarkets, instead of panicking, it is a time to buy selectively as good shares go down with the overvalued ones.

The best fund managers see setbacks like the present one as a buying opportunity and there are often real bargains to be had, particularly in the smaller companies sector.

Despite rising taxes and utility prices, some smaller companies in niche areas, especially those supplying the public sector where spending continues unabated, can show substantial increases in profits. In times like these, it is important to choose fund managers who have proven expertise in this area.

Investors should be warned that results are unlikely to show through immediately. However, over the next year, it is likely that smaller company funds will outperform the FTSE All Share index.

Some of the fund managers I like most include Giles Hargreave of Marlborough special situations, Richard Plackett of Merrill Lynch UK smaller companies, Daniel Hanbury of Investec UK smaller companies, Roger Whiteoak of Framlington UK smaller companies, Frank Manduca of UBS UK smaller companies and Stuart Sharp, who manages the two Rensburg smaller company funds.

Of those managers with improving smaller company performance, Daniel Nickols, who runs Old Mutual UK select smaller companies, is a particular name to watch. Others are Harry Nimmo, of Standard Life UK smaller companies, and Simon Bailey, who manages both the Prudential and M&G smaller company funds.

But a word of warning . Beware of poor performing managers in the smaller companies sector as these can suffer even bigger losses than those of bigger company funds.


Women and carers to benefit from reform

A better deal for women and carers will underpin the Government’s pension reform agenda, says Work and Pensions Secretary John Hutton. Speaking at a Fabian Society event, Hutton said the Pension White Paper will simplify the credit system to better reflect the way people contribute to society. Hutton said the Government will target women aged […]

Multi-manager View: Out for the discount

Given the market correction, multi-managers should make a tactical switch in direction and increase their exposure to closed-end funds. Historically, discounts have moved in line with sentiment within the London stockmarket so it is not surprising that they have widened since the market peaked on May 11.

‘Cameron uninformed on Hips’

The Association of Home Inf-ormation Packs has attacked Tory leader David Cameron, describing his stance on Hips as an example of the “uninformed” comment circulating in Westminster. Speaking at the Mortgage Business Expo in Manchester last week, Ahips deputy director general Paul Broadhead said Cameron’s suggestion that Hips should be scrapped because of the damage […]

Mortgage View: Three’s a crowd

Much has been written of late about the alleged demise of the industry’s Holy Trinity: packagers, networks and clubs. So as an intermediary business which has a limited interface with all three, I think Hamptons has a relevant opinion.

The Merchants Trust PLC – April 2017

Welcome to the latest update for The Merchants Trust PLC from the Trust’s portfolio manager, Simon Gergel. Portfolio Review The Merchants Trust reported results this month and the directors were pleased to announce a 35th consecutive year of dividend growth (subject to shareholder approval at the AGM). The Company is proud to be highlighted as […]


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