The Cautious Adviser Fund Index is the most diversified of the three AFIs with a broad exposure to all major asset classes. It has reacted less acutely to recent global stockmarket volatility than the Aggressive and Balanced AFIs.While equities are still the panellists’ favoured asset class in the Cautious index, with an overall allocation of 47 per cent to equities at May 1, 2006, weightings to fixed interest (39 per cent), property (9 per cent) and cash (5 per cent) are all greater in the Cautious AFI than across the other two indices. With a 91 per cent allocation to equities, the Aggressive AFI is considerably more exposed to equity market fortunes and has predictably exhibited higher levels of volatility than the Balanced and Cautious indices. While the Cautious index is more diversified by asset class, its equity exposure is more concentrated in UK shares. Overseas equities make up just 26 per cent of the total exposure to shares in the Cautious AFI while the corresponding figures for the Aggressive and Balanced indices are much higher, standing at 51 per cent and 38 per cent respectively. This implies that, in aggregate, the panellists view overseas equities as more risky than shares in domestic companies, despite the diversification benefits that a broader regional exposure can bring. Thinc Destini director of investments Ian Shipway says: “There is an impression that overseas markets are more risky and it is better to stay at home but the FTSE 100 index has a significant amount of international exposure and investors are perhaps not getting as much exposure to the UK economy as they think. Overseas equities also have currency risk. “There is a psychological side, too. People feel comfortable investing in domestic companies. The UK market also has a tradition of paying higher dividends and investors get a decent part of their total return through an income stream. Higher dividend yields can dampen out volatility.” Weightings to the IMA UK equity income sector are also greater in the Cautious AFI, with approximately 57 per cent of its UK equity exposure invested in the sector.
Sesame parent Misys says it has received a number of indicative offers for the whole company as well as for parts of the company and a number of parties are carrying out due diligence.
First Actuarial is finalising its expansion plans as it celebrates itssecond year of trading with strong business figures.The actuarial consultancy is planning further recruitment at its four existing offices and the opening of a fifth office in Peterborough next month.Latest annual trading figures from First Actuarial show annual revenues up by 40 per cent on […]
Property website Rightmove has confirmed it is axing its home information pack proposition following the Government’s dramatic U-turn on Hips last week.Rightmove had planned to spend 22m developing its HIPs proposition, of which approximately 7m has been spent to date. Exit costs are expected to be 1.2m.Last week, housing minister Yvette Cooper announced that home […]
Mansfield Building Society is celebrating two of its figureheads reaching their 40th and 25th anniversaries with the firm. Product manager Pete Doherty, not to be confused with the Babyshambles star, has been working at Mansfield for 40 years while chief executive David Fisher has clocked up 25 years. Staff celebrated in true mutual style by […]
The suitability of different estate planning solutions will depend on the individual’s own circumstances, needs and objectives. When considering the different solutions available there is a trade-off between inheritance tax (IHT) efficiency and access. Overall a flexible reversionary trust provides a greater level of flexibility than a discounted gift trust and can offer individuals a […]
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The Financial Ombudsman Service has appointed Money and Mental Health Policy Institute vice chair Richard Lloyd to lead an independent review into its complaints handling process. The former Which? executive director has been charged with producing a report into FOS’ practices after a Channel 4 documentary earlier this year suggested a number of failures at […]
Aberdeen Standard Investments has voted against multi-million pound payouts for senior executives at housebuilder Persimmon. Persimmon held its annual general meeting today. There was a huge outcry at the end last year when it emerged the chief executive, chief financial officer and managing director of Persimmon were in line for huge pay packets as a […]
Consideration of non-pensions related tax-advantaged investment is becoming more necessary This week I want to take a look at where things stand in relation to pensions and planning using tax-advantaged investments following the Spring Statement. With the increasing impact of the lifetime and annual allowances, consideration of non-pensions-related tax-advantaged investments is becoming ever more necessary […]