View more on these topics

Eastern European promise

I am always suspicious when a stockmarket sector has risen dramatically over three years or so but I believe that well managed European emerging markets funds will still outperform most other sectors over the next few years.

This is partly because many of these countries have now joined the EU, so investors in these areas can be more confident than previously.

These countries are benefiting as many Western companies choose to relocate some of their production eastwards, where it is usually cheaper to buy goods or services. There has also been a big jump in exports, which is expected to continue. One of the trusts I like best is the Baring emerging Europe investment trust, run by Stuart Richards, who has been with the emerging markets equity team since 1996. Performance has been outstanding. Over 10 years, a 1,000 investment would have grown to over 10,000 as at July 1 while, over five years, a return of 2,784 would have been achieved.

About a third of the fund is invested in Russia, 24 per cent in Hungary and 20 per cent in Poland, with smaller holdings in Turkey and the Czech Republic.

Turkey is a particular favourite of the manager as he believes its strong economy will continue to drive earnings and, despite opposition from some EU members, it will eventually join. He also believes that Russia continues to look relatively attractive in terms of valuations.

I also like the Jupiter emerging opportunities and Credit Suisse European frontiers unit trusts as well as the Eastern European investment trust.

It is certainly worth investing part of bigger portfolios in this area.


Q2 Isa sales down 10 per cent

The AITC says quarter two investment trust Isa sales were down 10 per cent on last year from 21.7m to 19.6m. Global growth accounted for the highest proportion of Isa sales by sector followed by UK growth and income. The average investment by regular savers was 152 per month, while the average lump sum investment […]

‘A-Day changes are set to cost 15m per life company’

Pension providers are not prepared for A-Day and face a bill of up to 200m to cope with the consumer choice it will bring, claims Computer Sciences Corporation. The IT company, which manages over half of the UK’s life and pension policies, says insurers may have dealt with compliance issues ahead of A-Day next April […]

Section guide

The countdown to A-Day is turning into a battleground of ideas between providers over what product is best for clients.

Fidelity gives lesson in saving

School leavers could face a shortfall of around 10,900 on university costs because parents save to meet higher education costs with cash rather than through shares, according to research from Fidelity International. The firm says a typical investment of 50 a month in the stockmarket over the past 18 years would have created a savings […]

China: growth defence or another debt-fuelled boom?

By Douglas Turnbull, Head of Chinese Equities at Neptune Following recent stimulus efforts from Beijing, Neptune’s Douglas Turnbull examines how the government’s long-term reform agenda can be balanced with supporting growth and addressing structural challenges, and the investment opportunities arising from this.Click here to read more Important information: Investment Risks Neptune funds may have a […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm