We are coming to the end of 2012 and despite all of the economic clouds, it has been a reasonable year for the majority of investments. However, those clouds persist: uncertainty surrounds Europe's fate; the US could fall off the fiscal cliff; and China is slowing for the first time in a generation.
So, as things stand in the world, there should always be room for a defensively minded investment in your pension. Step in Neil Woodford, manager of the Invesco Perpetual High Income fund. Woodford is still extremely wary of global economic strength since the financial crisis took hold in 2008.
His long-term performance is excellent but his strategy of taking big bets in unloved sectors suffers over the short to medium term. His current conviction is in the health care sector where he has close to 35% of the £12 billion fund. In recent months he has added several companies operating in the sector: Smith & Nephew, Sanofi and Elan.
Health care has underperformed for a long time and should it turn around Woodford will once again reinforce his excellent reputation.