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Tuesday, 25 September 2007 04:45 |
With a credit crunch in the US and subsequent stock market volatility in the UK, there has been a lot of speculation about the health of the UK economy, pushing UK investment companies into the spotlight. But what is the outlook for the UK and has market volatility produced opportunities for UK investment company managers?
The UK seems to have weathered recent storms as over 1 year to 31
August 2007; the average UK Growth & Income investment company is
up 10 per cent, and up 85 per cent and 115 per cent over 5 and 10
years, outperforming the FTSE All-Share Index over 10 years. Dividends
also remain strong in the UK Growth and Income sector, with an average
yield of 3.5 per cent. The UK Growth sector has also performed well,
with the average UK Growth investment company up 12 per cent over one
year, 134 per cent over 5 years and an impressive 170 per cent over 10
years - outperforming the FTSE All-Share over all time frames.
The Association of Investment Companies (AIC), Finsbury Growth &
Income Trust PLC and Value and Income Trust plc hosted a roundtable on
the outlook for the UK Growth & Income investment company sector
and have collated the views of key UK Growth & Income managers.
A good time for UK equities
Despite recent volatility, both Nick Train, Portfolio Manager, Finsbury Growth & Income Trust PLC and Angela Lascelles, Manager, Value and Income Trust plc are bullish on the prospects for UK equities. Angela Lascelles, Manager, Value and Income Trust plc said:
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