Max King, manager, Investec Managed Growth fund
"In the topsy-turvy world of quantitative easing, investment strategies at the cautious end of the spectrum guarantee real losses, while strategies normally regarded as "adventurous" are the only ones likely to protect investors from persistent inflation and devaluation.
"That means a heavy focus on equities but there is no need to be reckless; a well-diversified portfolio is better than a big bet in any one area - for example, constructing a portfolio where no holding makes up more than 5% of the fund, in a broad range of investment funds.
"A model portfolio might see around 10%-15% invested in general global funds and 45% in regional specialists. Findlay Park American is one such regional specialist. Our view is that an allocation is also made to regional small-cap funds to capture the long term outperformance of funds in that area.
"Then, the remaining allocation might be invested in sector funds, notably healthcare - for example the World Healthcare trust - resources, technology, property and private equity, such as Electra Private Equity. Holdings in investment trusts or other closed-end companies offer lower costs, better corporate governance and better performance than open-ended funds run by the same managers."
Patrick Connolly, certified financial planner, AWD Chase de Vere
"Old Mutual UK Select Smaller Companies benefits from a proven investment team which adopts quite an aggressive approach. The manager looks particularly for companies which are benefiting from structural growth and those with exposure to emerging markets.
"JPM Natural Resources invests primarily in gold and other mining shares and has had a torrid couple of years. This is largely because many investors have shunned the perceived high risks of these stocks, which has left many now at attractive valuations and potentially poised to perform well if sentiment improves."
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