OPM’s balanced managed, UK equity and equity high income funds are all top-decile in their respective sectors on a bid to bid basis between October 28, 2008 and March 18, 2009, according Financial Express data.
OPM says that unlike billion- pound portfolios, its funds are nimble enough to take full advantage of short-term tactical opportunities.
Although money is still coming into the funds, these are small amounts which do not hamper OPM’s ability to move quickly in and out of markets.
Fund manager Ross Henderson says we have already seen the low point in the market. He is not as negative as he was but expects the move towards a sustained recovery to be full of false starts, with markets experiencing short-term rallies before falling back.
Henderson sees selective buying opportunities in regions such as emerging markets and plenty of tactical plays in direct UK equities and reverse exchange-traded funds. Reverse ETFs allow fund managers to benefit from falls in markets such as the FTSE 100 and Standard & Poor’s 500. OPM will use these ETFs selectively during market rallies.
Henderson says: “IFAs are frightened of equity markets because they have been hit so severely. They were hit in 2003, so that is two big hits in a relatively short time. They are looking at returns and thinking, is it worth investing in equities? In the long term, it should be. It is the wrong time to give up on equities. However much doom and gloom there is out there, some companies have performed better than expected. It is not quite as bad as it was.”