View more on these topics

Julian Gibbs

Very often, last year&#39s worst performing sectors become this year&#39s winners. The worst performer in 2001 was technology, with the average unit trust being down by 47 per cent at the beginning of December. European technology shares were particularly badly hit.

While technology shares will continue to remain volatile, there are now some bargains which the best fund managers should be able to pick.

Aberdeen European technology fell by 54 per cent over the last year but I believe it will recover strongly, as will Alan Torry&#39s SocGen technology fund. Aberdeen technology and Henderson global technology should also be in the forefront of any recovery.

European smaller company trusts fell on average by 34 per cent last year, mainly because many were invested in technology shares. This year, I particularly like the prospects for M&G European smaller companies and Henderson European smaller companies.

There have been many false dawns in Japan and the recession there is fairly severe. But all bad things come to an end and I expect Japan to recover.

Again, Japanese smaller companies may be the best answer because, despite the heavy fall last year, they are still up by 65 per cent over the last three years. Here, I like Baillie Gifford Japan smaller companies and Invesco Perpetual Japanese smaller companies, while Martin Currie Japan has been a consistent top performer.

My last tip, and possibly the best one, is for European high-yield bond funds, especially if purchased through a Pep transfer or an Isa. These are yielding over 11 per cent and should recover strongly later this year as default rates fall and the euro strengthens against the pound.

Happy investing. May all of you and your clients be winners.

Recommended

Hargreaves&#39 Dampier defends polarisation

Investment IFA Hargreaves Lansdown has issued a detailed criticism of the regulator&#39s proposals for the abolition of polarisation saying the proposed system is nothing but one big loophole.The IFA believes that the current system is working on the whole. Head of research Mark Dampier points out that most of the problems, in particular Equitable, have […]

Inside Edge – Steve Bee

It now seems to be an accepted fact that our pension legislation needs to be simplified if it is to be of any earthly use to anyone. Everyone these days seems to think we have over-egged it a tad on the complexity pedal.I suppose I should say this simplification bandwagon is very welcome, even if […]

Lincoln – Opportunities Trust

Tuesday, 15 January 2002. Type: Unit trust. Aim: Growth by investing in small and mid-cap stocks. Minimum investment: Lump sum £500, monthly £25. Investment split: 100 per cent small and mid-cap stocks. Isa link: Yes. Pep transfers: Yes. Charges: Initial 5 per cent, annual 1.5 per cent. Special offer: 2 per cent discount on initial […]

Treponin test tells the tale

Advances in medical science change the way that we are affected by certain illnesses and the way we diagnose them. These advances in turn affect critical-illness cover. One example is the growing use of troponin tests to help diagnose heart attacks and other illnesses of the heart.The current heart attack definition used in critical-illness policies […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com