Financial markets have lacked direction in recent months, with the main equity indices all very close to where they were at the start of the year. Macroeconomic data are not strong enough to reinvigorate the bull market, yet not sufficiently weak to stoke fears of recession.
The UK is more attractive to invest in if it remains in the EU, according to Commonwealth business leaders.
The problem of managers “dressing up” track records of their funds has been
getting worse, not better. This is the conclusion of asset management consultancy Cerulli after talking to a bunch of fund consultants in Europe.
A vote to leave the European Union would most likely result in a material slowing of growth and a notable rise in inflation, the Bank of England said on Thursday.
Recent research by Martijn Cremers, who first coined the concept of active share back in 2009, shows that high active share (US equity) funds that trade relatively little have a better potential for outperformance than other funds. This could be the case because patience is often required to exploit market inefficiencies, Cremers told Expert Investor.
Recent reports from those favouring Britain to stay in the EU suggest a Brexit of any sort would be severely damaging to the UK economy. We assess what will be in store for investors if it happens, and how to Brexit-proof your portfolios.
As the month of May trundles into view investors will be thinking about the traditional summer-proofing of portfolios, but the shrewdest among them may see more opportunity than danger.
The big shift from the growth style of investing into a value style has been played out a number of times, but there are reasons to believe it could be an unwise move this time around.
Independent asset managers were the dominant players in Europe in the years following the financial crisis, capturing 90% of all inflows. However, this trend has reversed since 2014. In the past two years, asset managers owned by banks and insurance companies have recaptured market share, according to research by Cerulli, the asset management consultancy.
Negative interest rate policies have started to unnerve investors, even though Sweden, Denmark, the eurozone and Switzerland have all had negative policy rates for over a year.