The firm says multi-asset portfolios have become popular since Ucits III has enabled funds to hold different asset classes.Head of fund research Dan Kemp says: “The reason why everyone likes multi-asset classes is that they are meant to have low correlation but everything is moving upwards. The problem in the short term will be if this correlation persists when markets start falling. It is all going to fall out of bed.” Other multi-managers think it is unlikely that increasing correlation will impact negatively on multi-asset portfolios. Insight co-head of multi-manager Patrick Armstrong says: “I agree that correlation is increasing and this is because everyone is trying to get a return in excess of cash when yields are low. Commodities are performing well at the same time as equities, which is going to have a negative impact on equities at some point. “But there are some strategies that are not just benefiting from beta, such as directional bond funds. Also, if you look at gold prices in sterling terms instead of the dollar, which is weak, the figures look less dramatic.” Abbey head of multi-manager John Kelly says: “Asset classes are dynamic but always carefully balanced. Emerging markets, for example, have become more acceptable but they still only have 80 per cent correlation to other markets. Bonds are 50 per cent correlated while cash has no correlation. Now multi-managers have access to Japanese real estate and hedge funds, the range of investments will become wider still.”
Only half of first-time buyers avoid paying stamp duty despite the threshold being more than doubled over the last two Budgets. The Council of Mortgage Lenders found that 50 per cent of first-time buyers and 80 per cent of all people moving pay stamp duty despite Chancellor Gordon Brown raising the threshold from 60,000 to […]
Miton Optimal and Insinger de Beaufort are becoming increasingly cautious on emerging markets and commodities amid expectations of a short-term correction.
Ron Sandler has been signed up as chairman of closed life fund consolidator Paternoster.Sandler, current chairman of financial education charity PFEG and former chief executive of Lloyd’s of London, takes up his position with immediate effect. He is also currently chairman of Computacenter, Kyte Group and Oxygen.Paternoster, led by former Prudential UK chief executive Mark […]
The Council of Mortgage Lenders has revealed a drop in remortgages. Data for March shows that remortgaging accounted for 36 per cent or 10.3bn of lending which is 5 per cent less than in February and 10 per cent lower than March 2005. Despite the fluctuations, the CML says remortgaging remains a significant part of […]
Jelf Employee Benefits closely examines healthcare provision and challenges within Nigeria. This will be of particular interest to HR decision makers with employees based in Nigeria, and assesses the environment, risks, facilities and safeguards that are relevant to organisations that are actively deploying expatriate staff in this location.
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FCA chief executive Andrew Bailey is calling for regulators to back a proposed implementation period after Brexit to avoid an economic “cliff edge”. Speaking at The International Financial Services Forum today, Bailey continued pushing for cooperation between the British and European regulators, this time pointing to preserving financial stability. He says: “Brexit has global implications, […]
Prudential must compensate a customer whose transfer value was significantly reduced after a meeting with an in-house adviser. According to a Financial Ombudsman Service decision, the customer, called Mr L, was told on 2 March 2017 that the transfer value for his pension policy was £141,981. He met with a Prudential adviser, who recommended he […]
Choosing the right system is one of the most important decisions an advice firm will make. Here is a review of the best out there. Last month I looked at the four foundations of a solid adviser technology strategy. The first of these was the practice management system. Studies have found that between 20 and […]