Managers say stock picking key in '08

The unanimous view came after a period of high volatility in markets in which most global equities funds lost money. The median mainstream fund lost 1.3pc in Q4 2007, while its smaller companies equivalent fared even worse, losing 3.6pc. "At a sector level, insurance and financials were the most disappointing areas, punished in the wake of the US sub-prime volatility," said S&P Fund Services lead analyst, Alison Cratchley. However, she pointed out that a number of S&P-rated funds had delivered positive returns, mainly as a result of the good stock selection they are now counting on for ...