How many advisers have in the last three months seen a company present to them about how UK smaller companies is the place to be for 2006 and then how many of the same advisers have also heard from another company telling them that UK big companies is the place to be? Quite a few, I suspect.The industry is full of mixed messages and it can be difficult for an adviser to hear themselves think with the volume of suggestions and views from commentators. If we sit down and think about any market or asset class, it is easy to come up with reasons to buy or avoid an area but who do you listen to? Is it the large-cap specialist telling you the sector is undervalued or perhaps the small-cap specialist reminding us that small firms offer long-term opportunities. Both could well be right and their arguments equally valid but the consequence of the adviser getting it wrong can be costly. Just look at the impact of getting the sector right or wrong over the past three years. For the three years to the end of 2005, the FTSE Small Cap (ex IT) index outperformed the FTSE 100 index by 31.1 per cent. But it is not only about selecting the right sector, you have still got to pick the right fund or your hard work has been wasted. Staying with a UK smaller companies theme, there is a difference of over 130 per cent between the best and worst-performing funds in the sector over the same period. It is not just over the longer term that this matters – there is a difference of over 40 per cent between the best and worst fund in Japan over the past 12 months alone. Asset allocation is important but fund selection is equally so. With fund selection crucial, it is then imperative to keep up with the latest events on the funds being used. It is no surprise to see the demand for multi-manager products continues to grow. Styles come and go, fashions change and this can happen quickly, leaving you to try and rearrange all of your clients’ assets to keep up with the latest events.
Regulation has prompted little dramatic change in consumers perception of the mortgage industry according to the Council of Mortgage Lenders.Consumers still feel that deciding which deal is best for them is the most difficult thing about choosing a mortgage. Understanding the information given was still found difficult by the same proportion of respondents as the […]
Unions representing 1.5m local council workers are to ballot for strike action over plans to raise their retirement age from 60 to 65. These workers were excluded from DTI secretary Alan Johnsons deal with other public sector workers and instead have to negotiate with the Office of the Deputy Prime Minister.
Aberdeen Asset Management has ruled itself out of the race to buy Gartmore, with managing director of Asia Hugh Young saying the firm has its hands full with integrating Deutsche. Young, who is on the Aberdeen board, told Money Marketing that rumours linking the firm to Gartmore, valued by analysts at 600m, overlook its 265m […]
Nearly two-thirds of advisers want to scrap case fees for firms found innocent of complaints and are prepared to pay more if found guilty, according to a Money Marketing poll. The survey gauged advisers’ views on two alternative funding proposals which were rec-ently tabled by the Financial Ombudsman Service. The FOS is asking firms whether […]
By Robin Geffen, Fund Manager & CEO This is a testing time for investors. Over the past year the market has been driven forward by strong fundamental trends underpinned by changes in the real world, but over the past month a more animalistic sentiment has sent shares plunging. As we consider the remainder of the […]
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As someone training to be a cricket umpire, fair play matters to Fortitude Financial Planning director Chris Bowmer. Doing the right thing for clients is something he has adhered to from the start of his career, even in a 1980s sales environment with nothing to gain by delving beyond a client’s surface requirements. While he acknowledges […]
Fund managers who have helped pay compensation over the collapse of life settlement bond provider Keydata will receive a £12m refund, the Financial Services Compensation Scheme has announced. Keydata’s management has been embroiled in a multi-million-pound legal battle with the FCA since it collapsed in 2009. The total bill for compensation stands at more than […]
With no employer to fall back on, the self-employed are on their own when it comes to retirement saving. Irregular income patterns can make it harder to save regularly into a pension and commit to locking money away until age 55. Those who are building a business may see that as their biggest asset and […]