View more on these topics

Tigue looks to the long term

F&C Investment Trust manager Jeremy Tigue says he has been increasing borrowings in the trust to scoop up cheap shares during the credit crunch.

Tigue says the recent market turmoil has opened up some opportunities for long-term investors.

The 2.6bn investment trust’s gearing has increased from 5 per cent in June to 8 per cent in August and Tigue is expecting to get around 10 per cent this month.

He says: “Our caution earlier in the summer clearly paid off. We slashed gearing to a seven-year low and closed out our long-standing and successful strategy of borrowing in Japanese yen to finance higher returning investments elsewhere. The shake-out in markets is throwing up real opportunities for long-term investors and therefore it is right to progressively add new positions to the portfolio.”

F&C investment trust is borrowing in US dollars rather than Japanese yen, based on Tigue’s assessment that the US Federal Reserve will reduce interest rates to address the problems in the credit markets which stem from defaults on US mortgages.

Tigue favours emerging markets for the long term and remains cautious about the US. He warns private investors not to “pile in relentlessly” but to consider a similar steady approach to re-entering the market, for example, through regular savings schemes.

He says: “Despite widespread bearishness and paralysis in credit markets, the liquidity crunch will unwind over the coming months.”


£4,000 up for grabs, marking Adviserzone’s 10th birthday

Standard Life’s adviserzone is offering advisers to share in a £4,000 prize fund to mark its 10 year anniversary. The insurer is launching four games to celebrate its decade of secure online services, the first of which is ‘Reduce the Paperwork’, with more online games to follow in October, November and December.The purpose of each […]

‘Aifa is defending small IFAs’

Small IFAs are scared of being “victimised” by the FSA and many feel Aifa is the only body looking out for their interests, says Kent-based RH Invest-ment Services.

L&G staff to get Samaritans training

Legal & General has called in the Samaritans to provide its staff with specialist training and advice on how to deal with difficult or sensitive calls with customers making a protection claim.The training aims to equip claim-handlers and those in operational support with the skills to offer a compassionate and efficient service.L&G claims and underwriting […]


What employers should expect over the next five years

A major feature of our articles is looking into the Jelf Employee Benefits crystal ball to predict changes and trends that may influence the short and medium term shape of UK employee benefits.  By flagging such changes early we aim to provide our followers with the tools to make sensible and informed decisions on their benefits offerings.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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