EUROPE - Equity funds are expected to make a performance comeback over the next 12 months, according to fund rating agency, Morningstar.
Hedge funds also appear to be slipping out of favour, reported the survey of 61 investment managers across Europe and the UK, who hold an average of EUR53bn in assets under management.
Only 13% saw hedge funds making up most new fund launches over the year. Instead, fund of funds, and conventional, or plain ‘vanilla', funds were expected to dominate the scene.
About 66% of respondents said that most new funds launched in the next 12 months would be equity-based.
Fund managers also showed continued optimism about overall stock market performance; around 50% highlighted Asia (ex-Japan) as the region with most performance potential over the period.
According to Morningstar, most fund managers also seem to be responding to a demand in ethical or socially responsible funds. Some 80% said that these types of funds will increase their popularity into next year,
By Madhu Kalia
Jonathan Stapleton asks whether newly-accredited professional trustees should be a statutory fixture on pension scheme boards.
Savers are being warned by the Insolvency Service to guard their pension pots from investment scammers and negligent trustees as it winds up 24 companies.
Respondents say they should only be required in certain situations as the system is not broken.