View more on these topics

&#39Cash beats 97% of funds in all companies sector&#39

Investors are better off holding cash during flat markets than in 97 per cent of funds in the UK all companies sector, says Bates Investment Services.

The firm&#39s research reveals that just eight out of 268 funds in the IMA UK all companies sector produced positive returns and delivered the equivalent of 5 per cent a year compound during four flat stockmarket periods. The 5 per cent level was set as a target that the funds had to beat bec-ause this is what investment in a cash deposit would have achieved.

A study of the IMA UK equity income sector reveals that only eight out of 77 funds have beaten cash.

Bates&#39 survey results were based on January 5, 2004 to August 27, 2004; July 8, 2002 to January 5, 2004; September 25, 2001 to July 8, 2002 and October 9, 1998 to September 25, 2001.

Investment manager James Dalby says: “These results are really eye-opening and show that instead of investing in a lot of these funds, people would have been better off holding cash.”

Legal & General investments PR manager Mike Connolly says: “You can choose any periods and draw a series of conclusions from it. We advise our customers that investing is a long-term issue and that you should stick with a fund for at least five years. The stockmarket has always grown over the longer term.”


Fears over voting and qualifications

Money Marketing has given IFAs the opportunity to put their questions to Sofa and the LIA about the proposed merger bet-ween the two bodies. Recurring questions centre around the loss of the “dip” from LIA members&#39 qualifications and the possibility of a transitional period to enable advisers to acquire additional AFPC passes to avoid relegation. […]

Firms working full pelt as big day approaches

“With many mortgage intermediaries not authorised by &#39M-Day, they may be seeking a route to market, for example, using a “friend&#39s” authorisation number for an int-erim period. The FSA is aware of such practice and is warning both authorised and unauthorised that this is an illegal act resulting in both parties being unable to trade […]

IFA hopes Snowdonia will be cash mountain

Family-based occupational pension schemes may not be the inheritance tax shelters that many advisers expect, experts are warning. Technical Connection pensions consultant John Page says the Inland Revenue has hinted that the new alternatively-secured pensions will attract an IHT liability. Under the Government&#39s current proposals, alternatively-secured pension holders will be able to pass on benefits […]

Day Dawns for Quantum leap into commodities

Structured product provider Dawnay Day Quantum has created a capital-protected bond linked to a basket of eight industrial metals and energy-related commodities for a four-year term. Few people have direct exposure to commodities and are more likely to gain exposure through shares. However, Dawnay Day Quantum believes investors holding stocks such as BP and Shell […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment