Equities are the best bet for 2006

Equities are the way forward for 2006, a number of fund of funds managers say, with geographic allocation the differentiator between out- and underperformers.

Tracy Pearson, head of alternative investments at Forsyth Partners, says Forsyth favours equities, as bonds will "return to their former status as volatility dampeners for portfolios."

"Japan has the best restructuring story to tell," she notes, although - as January already showed - it will be "more volatile as investors find the story.