'Everything right' for F&C trust in 2007

Asset allocation, gearing and stock selection all contributors to 140-year-old trust's top return over course of year

Foreign & Colonial trust manager Jeremy Tigue is comparing current conditions to the post-bear market of 1974, expecting a significant bounce back after recent volatility. He said increased allocation to emerging markets, reduced gearing, further exposure to private equity and sound stock selection all helped the trust beat the All-Share and World indices in 2007. The manager has steadily increased his weighting to emerging markets from 5% in 2003 to around 20% today. He said exposure to domestic stocks - instead of the export trade, which is reliant on the US - will maintain the regi...