Turning towards the largest companies in the UK when selecting a new investment solution could be the best option for investors in the current climate, according to Fidelity Worldwide Investment.
Considering what is out there at the present time, Fidelity portfolio manager James Griffin pointed out that the share price of larger companies has deteriorated in recent times as investors have looked towards the potential for growth seen in smaller companies.
He noted that as this has been seen over the last decade or so, it has left open a range of good options.
However, in the current economic climate , the larger companies have started to look more attractive to a range of people.
Mr Griffin noted that with low growth expectations seen across all industries, companies that have the means to fund their own growth are in the strongest position when compared with their smaller counterparts.
He explained that as things remain very unclear in the Eurozone it does seem certain that it will take many years for the supply of credit to be brought back to its previous levels.
"In a world of low growth, those companies with strong balance sheets, the means to fund their own growth and the benefit of having a powerful international businesses built over many years, have a huge competitive advantage," Mr Griffin explained.
Outlining some of the best companies to turn to, he listed the likes of Rolls Royce, GlaxoSmithKline and WPP as being what he termed 'global champions' that are based within the UK.
Earlier this month, Fidelity explained that it welcomed a call from the government for closer policing of boardroom pay and bonus deals, as it announced it was working more closely with its shareholders on how its executives should be remunerated.
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