The best and worst: Unit Trust Sectors 1992

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The Independent Online
A POLL of fund managers by the Independent on Sunday at the end of 1991 brought almost unanimous agreement that Europe's bourses would prove attractive to UK investors in 1992. This view was based on the belief that interest rates would fall, driving share prices up. German rates remained high, however, keeping most others up too.

Many fund managers were enthusiastic about the Japanese market, but it continued to suffer heavy falls.

There were windfall currency gains from the United States for UK investors. The Dow Jones Industrials index ended the year just 4.2 per cent up, but the equivalent rise for a sterling investor was 28.9 per cent.

The performance of funds invested in UK smaller companies was also a big disappointment, although there was a late upturn.

Cash funds did not do quite as badly as some expected, compared to equity funds. Money flooded into them late in the year.

Far Eastern markets, other than Japan, did better than expected and many fund managers are backing them for 1993. Best and worst unit trusts

------------------------------------------------------------------------ Unit trust sectors 1992 ------------------------------------------------------------------------ The best % 1 Far East Excluding Japan 36.14 2 North America 27.40 3 International Fixed Interest 16.82 4 International Equity Income 16.38 5 Far East Including Japan 13.43 The worst 18 Money Market 6.47 19 Europe 6.11 20 Commodity & Energy 1.35 21 UK Smaller Companies 0.53 22 Japan -6.95 ------------------------------------------------------------------------

Average percentage profit or loss, one year to 1 January 1993, net income reinvested, offer to bid Source: Micropal