Portfolio Builder
Investors keep the faith
A continuing trend in 2011 was investors’ thirst for
income, with the likes of strategic and high yield bond
funds having their time in the sun as popular investments.
On the equities side, while several fund groups rolled out
global equity income funds, most investors still retained
their unwavering confidence in the UK equity income
stalwarts. That some of these big names struggled for
a time during the year is unsurprising, given the market
volatility and macro uncertainty, although the pressure
will be on for them to repay that faith in 2012.
� 51% of UK investors plan to allocate money to the UK
in 2012, although only 14% expect the home market
to produce the best returns.
� In comparison, 27% plan to put money to work in
emerging markets, with 29% believing these funds
will give the best returns.
� 49% plan to invest in equities, versus 27% in fixed
income and 26% in cash.
Source: IMA investor survey
In this section…
Fund selector
HIGH YIELD BONDS 28-30
“Assessing the outlook for
high yield in 2012 presents
a real challenge as so much
hinges on the progress
made in solving, or at least
containing, the European debt
crisis” Investment Quorum’s Lee
Robertson casts his eye over one
of the most popular fixed income
sectors of recent months
Manager sentiment survey
MARKET OUTLOOK 26-27
“The Bull of the Month title
changed hands almost every
month, while BRIC equity was
again the strongest performer,
heading six of the 12 surveys
during the year” 2011 was not
a vintage one for equities,
although fund managers still
looked to the poor-performing
Eastern markets for growth
Asset allocator
BERRY ASSET
MANAGEMENT 31-32
“Risk and fear assets
have swapped places in the
past few months... there is
probably more danger in
government bond markets
at the moment than in
equity markets” Berry AM’s
chief investment officer Mark
Robinson outlines why equities –
particularly equity income funds
– are the best bet for 2012
JANUARY 2012 [www.portfolio-adviser.com] PORTFOLIO ADVISER
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