Worst is behind us, says Redwood as new funds launched

Mr Redwood, who unsuccessfully challenged John Major for the Conservative party leadership in 1995, said his firm was encouraging investors put their money in Asian equities, high yield safe bonds and property.

The former Welsh Secretary was speaking as Evercore Pan Asset Capital Management, of which he is chairman, launched two funds designed to cut costs and make decisions simpler.

They were presented to independent financial advisers and charity investors at a roadshow in Leeds yesterday.

Mr Redwood said: "I think the worst of the crisis is behind us. We are now expecting a revolving Government or sovereign debt crisis across the world.

"We have seen Greece and Ireland get into trouble and I think we will get into more trouble. There is an issue whether Britain will get into trouble."

Mr Redwood said "much lower growth" was the was "price to pay" for the banking crisis.

Evercore operates by deciding on the asset mix and buying index-tracking exchange traded funds (ETFs).

The firm said its new products, Pan Dynamic Balanced Fund and Pan Dynamic Growth Fund, are well positioned to protect investors from losses in UK government securities and to make money out of any devaluation of the pound.

Both funds aim to achieve capital growth and income by investing mainly in ETFs and similar securities to track the performance of various asset classes.

The minimum investment level is 1,000 for retail investors.

The funds have a 0.4 per cent annual management charge meaning a 0.6 per cent total expense ratio.