The report, published today, collates investment company managers’ views on the UK’s economic outlook and pinpoints specific sectors and companies which could outperform the market in a downturn.
ING UK Real Estate Income Trust manager Michael Morris believes property could provide good returns despite the recent furore over falling house prices.
He says: “The majority of UK leases have an ‘upwards only rent review clause’, which means that unless you see tenant default, for the duration of a lease investors are protected from falling rents even in a market downturn.”
Morris is also bullish on healthcare and infrastructure, sectors which are driven by factors other than the economy and “should hold up well during a period of weak growth.”
The Association of Investment Companies communications director Annabel Brodie-Smith says: “The defensive sectors should do relatively well during a slowdown but there will also be opportunities for other companies to benefit through perhaps buying cheaper assets, winning new customers or advising those who are experiencing difficulties.”