The Bank of England’s monetary policy committee has cut interest rates to 0.25%, and committed to a new term funding scheme to “reinforce the pass-through” of the decision into the broader market.
Zero-fee funds? Be careful what you wish for
Talk of a 0% fee for passive investing is an enticing prospect, but as core funds become cheaper so groups are encouraged to over-complicate the satellite.
Investor confidence plummets after Brexit vote
The British vote for Brexit has seriously affected the confidence of institutional investors across the globe. In July, State Street’s Investor Confidence Index dropped to such an extent that institutional investors globally are now decreasing their allocation to risky assets.
The Fed is running out of room to manoeuvre
This week’s Federal Reserve meeting presents a particularly difficult set of circumstances to the Federal Open Market Committee.
Too many cooks spoil the broth – star managers do best
When an equity fund run by a single manager takes an extra manager on board, portfolio concentration decreases and performance goes down. That’s the main conclusion of fresh research published by the CFA Institute.
Brexit impact on EU-27 will be minimal, claims GAM
The economic impact of Brexit on continental Europe will be small, according to Niall Gallagher, investment director of European equities at GAM.
Fund buyers uncertain about macro outlook
European investors are more uncertain about their macroeconomic outlook than ever before. In a year’s time, the share of fund buyers with an uncertain macroeconomic outlook has doubled to 60% according to Expert Investor data.
Millennials – it’s not a generation, it’s a way of life
No doubt you have recently come across some articles that mention the words ‘millennials’ and ‘investing’ in the same breath. But unlike many asset managers want you to believe, millennials are not just another generation such as the babyboomers.
Is timing now more important than time in the market?
In its latest Flow Show note, Bank of America Merrill Lynch pointed out that, at current rates, it would take you 1387 years to double your savings in a 1-year German deposit account.
Europe: a growing cash cow for asset managers
Europe’s share of the world economy may be declining steadily, but there is at least one area where the continent is growing in importance: asset management revenues. Global asset management companies are deriving an ever growing share of their revenue from Europe, at the expense of the United States.