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Alan Thein and Tim Gardner, fund managers at L&G, currently favour Europe, Asia and emerging markets more generally from a top-down perspective.

"You probably will see volatility continuing in the markets," Mr Thein said. "To call the bottom is dangerous, but there is good value in a lot of areas.

"Far Eastern and emerging markets offer some potential. We are generally underweight the US and the UK."

Mr Thein said appreciating currencies, sound demographics, improving governance and declining subsidies had all made emerging market stocks more attractive.

"You've got companies that are more likely to show profits than in the developed world."

Mr Thein said he and Mr Gardner had spotted some potential investments in specific regions, but had not yet bought into any new holdings.

"We're doing some work on Mena and Latin America, with a particular focus on Brazil," he said. "We're also looking at emerging market debt and property in Asia."

Mr Thein said he would access the emerging markets through actively managed funds, as opposed to trackers or other index options, as some of his rivals have done over the past 12 months.

"We will add the capability to do ETFs and derivatives next year," he said.

Over three months to 4 August, Mr Thein and Mr Gardner's recently launched £2.7m MM Balanced and £235.9m MM Growth trusts are in the second quartile of the IMA Balanced Managed and Active Managed sectors, respectively.

Their £131.3m MM Income trust was in the third quartile of Cautious Managed over the same period.