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Midas funds take step in the right direction

Midas Capital’s balanced growth and balanced income funds appear to have turned a corner following last year’s poor run.

The latest factsheets show an improvement in the short-term performance for both funds, which had fallen into the fourth quartile.

Their contrarian investment approach, which invests against the consensus view of markets, went against them in the aftermath of the credit crunch.

The balanced growth fund has jumped into the second quartile over the last three months, producing a 3.4 per cent return which beats the sector average by 0.7 per cent.

The balanced income fund has edged into the third quartile over the same period with a 1.2 per cent return, 0.2 per cent below the sector average.

Midas Capital sees this as a step in the right direction but says it still has to make up lost ground as last year’s poor form damaged its long-term performance rankings.

Balanced growth fund manager Simon Edwards says that just as the funds were hurt on the way down by the positions they had taken, they have benefited from sharp increases in recent weeks.

Favouring corporate bonds relative to gilts is reaping rewards while some of the closed-ended funds held by Midas have taken steps to narrow their discounts through share buybacks.

Edwards says: “We held our nerve, doubled up on investments in many cases and bought value as we felt it would come right at some point.”


Prime motivation

Money market funds have quickly become big business amid recent economic turmoil and Prime Rate Capital Management has enjoyed 600m-plus inflows in little more than a year.

N&P scraps intermediary arm

Norwich & Peterbrough has written to advisers to inform them that its intermediary arm, Astra Mortgages, has been closed to new business.

Trouble ahead - thumbnail

Pensions: trouble ahead?

The pace of change in the pension’s space has been little short of astonishing, and has left thousands of employers struggling to keep their pension policy compliant, and also on the right side of current best practice and governance. Many employers, and indeed many in the pensions industry itself, would like to see a period of no change during the next term of government. This would give all sides a chance to catch up and draw breath. 


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