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Big increase in sector concentration in UK stock market says Fidelity

Sector concentration in the UK stock market has increased dramatically over 10 years while global markets have remained consistently more diverse according to research from Fidelity International.

In 1996 less than 31 per cent of the UK market was concentrated in the three biggest sectors, energy, pharmaceuticals and banks.

By 2002 the sectors accounted for around 50 per cent of the market’s total value and today the three sectors represent 47 per cent of the MSCI UK index.

Conversely, the MSCI world index has remained at about 30 per cent in the three sectors over the same period.

Fidelity global special situations manager designate Jorma Korhonen says: “The UK market has a strong bias towards three sectors-energy, banks and pharmaceuticals and biotechnology. This means that portfolio performance will largely reflect what is happening in these areas. By taking investment further a field this reliance on particular sectors is diminished.”

“Being able to search anywhere for investment ideas means that both geographical and industry biases can be avoided.”


Cummings warns on policing problems

Aifa director general Chris Cummings says providers checking the quality of advice could lead to confusion over responsibility for misselling.He says it would also result in providers’ second-guessing IFA decisions and lead to problems with the Data Protection Act if providers want evidence to back advisers’ decisions.Cummings says providers take greater responsibility for quality of […]

Out of our debt

It is difficult to remember the world that existed before the introduction of credit cards in the UK. Barclays was the first and that was over 40 years ago.

Burns-Anderson on sale for 12m

Burns-Anderson is looking for a provider or providers to buy the business from its shareholders for 12m. The network’s manage-ment, which aims to continue at the firm, intends to use the money to pay off shareholders and invest the surplus in upgrading its technology and in-house IFA. Burns-Anderson says some of its 450 shareholders – […]

Sipp warning on halls of residence

I was interested to read the recent article in Money Marketing on Sipps being able to invest in for student halls of residence. The Revenue has said that the property must be identified by an educational establishment as one of its halls of residence. It must also be demonstrated that the educational establishment in question […]

2016 Global Survey of Individual Investors: How is investor behaviour rewriting the job description for financial professionals?

Trapped between expectations for near double-digit returns and strong apprehensions about investing in persistently volatile markets, investors worldwide are of the opinion that professional financial advice is worth the fee. But even though they believe individuals who work with a financial professional are more likely to achieve their goals, investors have a clear vision of […]


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