Phamaceuticals favoured for providing visible earnings

Investors should focus on companies with visible earnings and sustainable and expanding margins, says Ed Collins, manager of the New Star Dynamic UK fund. Although the global stock market has seen some instability recently, Collins does not predict a significant downturn in the UK economy. That said, he is overweight on defensive stocks, in particular pharmaceuticals. "Whatever happens to the economy, people still need drugs," says Collins. His fund's exposure has been through GlaxoSmithKline, Roche and Astrozenica. "They are not stellar-performers but pharmaceuticals have very visible ...