FTSE drops but UK remains stronger than Eurozone, fund managers claim Go compare with our comparison table

FTSE drops but UK remains stronger than Eurozone, fund managers claim

25 May 2010 / by Rebecca Sargent

The FTSE 100 opened with a drop this morning falling more than 2.5 per cent from 5,069 to 4,938 amid fears that the Eurozone crisis will cause more turmoil in the financial sector.

But, the UK remains in a better position for recovery than our Eurozone neighbours, leading fund managers claim.

A survey from Fidelity FundsNetwork, of fund provider views on the Eurozone crisis has revealed that the general consensus is that, as the Greek fiscal crisis deepens, the UK is in a much stronger position than other countries in the Eurozone.

Commenting, Ed Dymott, head of UK fund partners at Fidelity International said: "Our survey suggests that much of the market believes that the recent issues in Greece are likely to spread, but how quickly and how far is still in question. There was certainly mixed views from the fund managers we interviewed on the attractiveness of European investments in the short term."

Commenting on whether the Greek crisis looks set to be contagious, James Foster, manager of Artemis Strategic Bond said: "It depends. The almost $1trillion package thrown at the overall problem certainly shows that the Europeans are serious about containing, and then resolving, the indebtedness.

"What the bond and currency markets need is deeds, not just words. The crisis could prove contagious – and that's why markets are still very nervous – unless governments of Greece (and Spain, Portugal and the UK) deliver on their 'austerity plans'."

But the crisis may not be all bad, Max King, Fund Manager, Multi Asset Team, Investec, said: "Ultimately, a resolution of the euro crisis will be positive: a fall in the euro will stimulate growth and the fiscal problems in Southern Europe are insoluble without devaluation and a restructuring a debt. As with the collapse of the Soviet block, a collapse in the euro block would be disruptive in the short term but pave the way for solvency and prosperity in the future. With the exception of Greece, Southern European countries plus Ireland are far better managed now that before they entered the euro: they will not revert to the bad old ways when they leave. The growing instability of the Eurozone is a reason for cautious valuations, not for avoiding risk assets."

© Fair Investment Company Ltd

 Product NameISA OptionIncome YieldMore Info
Henderson Strategic Bondyes5.7%More Info >
Income Paid Quarterly. Investing in higher yielding assets which will include most types of fixed interest securities, this fund aims to deliver a quarterly income to investors. See latest fund factsheet for details.
Newton Asian Incomeyes5.43%More Info >
Income Paid Quarterly.The objective of the Sub-Fund is to achieve income together with long-term capital growth predominantly through investments in securities in Asia Pacific ex Japan (including Australia & New Zealand) region. The Sub-Fund may also invest in collective investment schemes. See latest fund factsheet for details.
Newton Higher Incomeyes5.4%More Info >
Income Paid Quarterly. The objective of the Fund is to achieve increasing distributions on a calendar year basis with long term capital growth. The Fund may also invest in collective investment schemes. See latest fund factsheet for details.
Invesco Perpetual Distributionyes4.7%More Info >
Income Paid Monthly. Invesco Perpetual Distribution offers a balance between both income and capital growth through investment in UK based equities and fixed interest securities. See latest fund factsheet for details.
Invesco Perpetual Monthly Income Plusyes4.46%More Info >
Income Paid Monthly. Popular income fund that aims to achieve a high level of income whilst seeking to maximise total return through investing in high yielding corporate and Government bonds, together with UK equities. See latest fund factsheet for details.
Woodford Equity Income Fundyes3.50%More Info >
Our selected partner for investing in Neil Woodford's Equity Income fund is Barclays Stockbrokers, via their INVESTMENT ISA for new ISAs and ISA transfers, or their MARKETMASTER® ACCOUNT for non-ISA investments. Income Paid Quarterly.The fund’s investment objective is to provide investors with long-term appreciation through investing in stocks primarily listed on the UK stock exchanges. Up to 20% may be invested in international companies. The income objective is 10% higher than the FTSE All Share Index yield with an anticipated annual yield of 4.0%.
Newton Global Higher Income yes4.7%More Info >
Income Paid Quarterly. The objective of the Sub-Fund is to achieve increasing annual distributions together with long-term capital growth from investing predominantly in global securities. The Sub-Fund may also invest in collective investment schemes. See latest fund factsheet for details.
Jupiter Merlin Income Portfolioyes3.10%More Info >
Income Paid Quarterly. To achieve a high and rising income with some potential for capital growth by investing predominantly in unit trusts, OEICs, Exchange Traded Funds and other collective investment schemes across several management groups. The underlying funds invest in equities, fixed interest stocks, commodities and property, principally in the UK. See latest fund factsheet for details.
M&G Global Dividendyes3.27%More Info >
Income Paid Quarterly. The Fund aims to deliver a dividend yield above the market average, by investing mainly in a range of global equities. The Fund aims to grow distributions over the long-term whilst also maximising total return (the combination of income and growth of capital). See latest fund factsheet for details.
Kames Strategic Bond yes2.95%More Info >
The primary investment objective is to maximise total return (income plus capital ) by investing in global debt instruments,denominated in any currency, ranging from AAA Government Bonds through to high yield and emerging market corporate bonds. At least 50% of the fund will be invested in sterling and other currency denominated bonds hedged back to sterling. See latest fund factsheet for details.
M&G Optimal Incomeyes2.44%More Info >
Income Paid Twice Yearly.The fund aims to provide a total return to investors based on exposure to optimal income streams in investment markets. The fund invests across a broad range of fixed income assets according to where the fund manager identifies value. See latest fund factsheet for details.
*Current Income Yields are Gross, Variable and Not Guaranteed
**Historic Yield reflects distributions declared over the past 12 months as a percentage of the mid-market price of the fund.
*** This is the target yield the fund aims to achieve per year, it is not guaranteed and could change according to prevailing market conditions. The target yield is net of basic rate tax.
Information correct as at 08/02/2012.

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