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Investors urged to take another look at UK stocks

UK shares now offer long-term value, despite the continued market volatility and investor nervousness, according to Govett Investments.

The company says that although all the major UK equity indices – the FTSE All-Share, FTSE 100, 250 and Small Cap – fell during the third quarter of this year the UK economy has remained resilient and could grow through consumer and Government spending.

But although Govett believes that the UK has moved back into fair value, it does not consider valuations to be cheap.

Chief investment officer John Murray says: “The notional real yield on UK equities is nearing what, historically, would have been regarded as very reasonable levels. While equity markets may be volatile for some time, we are urging investors to give UK stocks another look.”

Murray believes the Government has scope for further spending on public services and infrastructure and he predicts that house price inflation will continue to be a positive driver of the economy, provided interest rates remain low.

He also does not believe the pound is overvalued relative to other currencies and says the UK remains one of the best-performing economies in 2002 compared with other Organisation for Economic Co-operation & Development countries.

He says: “We see a strong likelihood of markets rising towards the end of the year-end, up both six months and one year from now. But concerns over a double-dip recession and possible conflict in the Gulf mean UK markets may decline before any rise.”


Cornerstone VCT with Matrix

Matrix Money Management – Cornerstone VCT Aim: Income by investing initially in gilts, fixed interest securities and cash then small income-generating companies Minimum investment: Lump sum £2,500 Opening-closing date: September 17, 2002-May 30, 2003 Charges: Initial 5.5%, annual 2% Commission: Initial 2.25%, annual 0.375% Tel: 020 7292 0825 Broker Panel: Douglas Croft, partner, Andrews Gwynne […]

Gartmore appoints commercial director

Fund manager Gartmore has announced it has appointed David Middleton as its new head of commercial development. He joins from Coutts Group where he is currently commercial director and responsible for all product development with the private client bank. When Middleton joins Gartmore in early 2003, he will report to head of UK retail Paul […]

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On several occasions you have explained about the use of a sharing order when it comes to splitting pensions following divorce. Can you actually show me how an order would work for the person who will receive the credit and also for her ex-husband, who will lose part of his pension? If she does not […]

JP Morgan relaunches Russia fund

JP Morgan Fleming is relaunching its offshore Russia securities fund as a UK-listed investment trust in a bid to appeal to a broader investor base. Investors in the fund will be offered the choice of rolling over into the trust, which will continue to be managed by Oleg Biryulyov and Mark Robinson, in about mid-December. […]

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Johnson Fleming set to host webinar on auditing auto-enrolment schemes

With 23 auto-enrolment compliance notices issued by the Pensions Regulator, and an evolving legislative landscape meaning previously compliant schemes may now be in breach of regulation, now is the time to think about auditing your auto-enrolment scheme. Johnson Fleming is hosting a webinar on 9 October at 11:00 on how to audit your scheme to ensure compliance, avoid breaches and fines and overcome data issues.


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