Three 'best of breed' funds

Despite the challenging economic environment, professional investor Peter Hewitt believes companies are in a good position to deliver earnings and dividend growth, and puts his faith in equities over bonds and cash. Here, he picks three 'best of breed' funds for the medium and long term.

Each week, a professional investor tells MoneyWeek where he'd put his money now. This week:Peter Hewitt, manager of the F&C Managed Portfolio Trust.

Although markets recovered well last year, over the coming months there may be a slight pull-back. There is much to be apprehensive about, including possible interest rate and tax rises, high government debts, the looming budget and a likely change of government this year. However, I believe that corporate results will emerge stronger than expected, as recently demonstrated by Barclays. Other companies are also in a good position to produce earnings and dividend growth, despite the challenging environment. In terms of asset classes, over the medium to long term, I believe that equities are much more attractive than bonds, property and certainly cash. Once it becomes apparent that the UK is on the path to recovery (albeit that recovery will be slow), I expect equities to forge ahead as the year unfolds.

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