Phil Doel, newly-joined fund manager at Foreign & Colonial Asset Management, says expected lower equity returns over the next 20 years will be a major driver of stockpicking strategies again coming to the fore in asset management.
Explaining the thinking behind F&C's UK Opportunities fund launch Doel suggests stockpicking is likely to see renewed momentum over the coming years, as the ability to generate sufficient returns by closely following an index of stocks will not be enough in a period where equities are expected to return 5.3% on average. Doel says this makes stockpicking “critical”, compared with recent focus on asset allocation. F&C’s calculations suggest equity returned on average 9.4% in the 1984-2004 period – even including the worst bear market since the mid-1970s. Although admitting a strategy of ...
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