The fund manager's recipe for success: buy when the market crashes

Article Abstract:

Fund managers must be prepared to buy into difficult markets in the hope that they will recover, according to Michael Hart, chairman of Foreign and Colonial Management, manager of Foreign and Colonial Investment Trust. This trust invested in a number of good-quality companies during the extended bear market of 1974, and undertook a similar strategy during the stock market crash of 1987. It has performed at a much higher level than the FT All-Share Index since the late 1980s.

Author: Eadie, Alison

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The worst the news the better for anyone looking to make good money out of recovery

Article Abstract:

M and G Recovery Fun has seen average annual compound growth of 20% since it was launched in 1969 to buy shares which were being abandoned by other investors. It is now the third-largest unit trust in the UK, with 150,000 unitholders and 1.4 billion pounds sterling under management. It still focuses on companies which are experiencing difficulties, especially companies about which there has been extensive negative publicity, causing shareholders to become concerned.

Author: Eadie, Alison
M and G Recovery Fund

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Advice for stock-pickers: buy what the market wants to sell

Article Abstract:

Investors should not necessarily focus on high-yielding stocks, as these companies could well have an uncertain future, according to Schroder Income Fund, a unit trust founded in 1968. This invests in shares which will increase its dividend income faster than the average dividend growth of the main UK equity market indices. This gives it a much higher potential long-term return than a bond fund, as share prices generally perform better than bond prices.

Author: Eadie, Alison
Evaluation, Investments

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Subjects list: Management, Mutual funds
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