Phillips & Drew's conviction that the market has been riding for a fall has proved partly correct. It's just too bad that it is the value stocks in which it invests that have had a drubbing.

"There's rarely been a better opportunity to buy solid UK stocks with a sound cashflow and a good yield," says Paul Yates, head of marketing. "We are reducing our cash weighting to invest in those we consider the best." Also, following bond purchases, P&D's current 6.75% cash weighting is half what it was.