In the expectation that the UK's biggest companies will continue to outperform the FTSE All-Share index, Hill Samuel Asset Management has launched the British Pep.
The Pep is based on its long-established British Trust and includes holdings such as Glaxo, HSBC and Barclays Bank.
Hill Samuel says it is currently bullish about UK equities and in particular the FTSE 100, which it believes will reach 6,000 points during the course of this year. It believes that this surge will be driven by the financial and pharmaceutical sectors.
Hill Samuel thinks the financials will perform well because of the demographic changes in the UK. It believes pharmaceuticals will outperform other sectors as companies reap the benefits of investment in research.
Hill Samuel is confident that an actively managed fund will outperform passively managed funds over the longer term.
The British Trust has returned 103.7 per cent bid to bid net income reinvested over three years to March 2, 1998. It is ranked 11th of 124 funds in its sector, according to Standard & Poor's Micropal.