After so many years with Gerrard and its predecessor businesses, and more than 43 years in the industry, it is tempting to look back and reflect on the changes that have taken place. It was 20 years ago last week since Big Bang, as the changes to the way in which the City operated became known.But you will be far more interested in learning what is likely to happen, rather than listening to the meanderings of a City man approaching pensionable age. Still, it is worth remarking on the significant increase in the professionalism of the investment and securities industries, which is due in no small measure to the upheaval kicked off 20 years ago. And alongside greater professionalism has come increased competition. The degree of choice available to investors is greater than ever. The application of sophisticated information technology has allowed the development of an array of products that would have been inconceivable a generation ago. But with more complex financial structures, and a vast range of products from which to choose, the role of the adviser has become more difficult. Presenting a detached and, dare I say it, disinterested view is hard to achieve. When, during the technology boom of the late 1990s Tony Dye pronounced the market too high, his reward was client defections rather than congratulations on what turned out to be a prescient observation. In other words, it can be hard for anyone still working in the investment industry to accentuate the negative. Whether operating in a more detached environment will make me a better commentator remains to be seen. Looking back at recent predictions, I can be accused of being too cautious. While not calling the start of a new bear market, I was preaching asset diversification and de-risking portfolios. In this I am unrepentant. The future is never as clear as some commentators would have you believe and guarding against the unexpected should be the duty of every prudent adviser. There are always dark clouds on the horizon if you look through the euphoria that inevitably accompanies rising markets. Among the clouds at present are higher interest rates and rising inflation. Moreover, with GDP growth ahead of expectations, house prices still rising and two members of the MPC voting in favour of a rise last time, the Bank of England is likely to opt for an increase before the end of the year. So a careful approach looks sensible. Valuation levels may appear undemanding but slower growth in the US, in particular, might unsettle some investors. Seeking value in equities remains the best approach. Brian Tora was investment communications director at Gerrard Investment Management Limited.
MFM iFunds ETF Global Growth Fund
Societe Generale Adequity
Best Asset Protected Fund
HSBC International has brought out a capital-protected offshore Oeic that is linked to the performance of the DAX global Bric Index for five years.
Investors in this fund will receive a full capital return at the end of the term regardless of the performance of the index, plus a minimum return of 9 per cent growth.
Skandia Investment Management has launched a UK best ideas fund, the second in its best ideas range.
The Department for Work and Pensions (DWP) has recently published new research, which once again demonstrates how the prospect of retirement is changing for older workers.
News and expert analysis straight to your inboxSign up
Latest from Money Marketing
Royal Bank of Scotland has joined rivals like HSBC in launching an automated investment advice service for more than five million customers. The bank claims to be the first bank in the UK to launch a “fully regulated” robo-advice service, which will be under its NatWest brand. The service, live from Monday, is targeted at […]
There is nearly £8.5bn in “drifted” legacy UK equity income funds that have underperformed against the sector over the past decade, research has found. As the fund management industry awaits Mifid II next year, Morningstar has analysed the competitive UK Equity Income sector on behalf of Money Marketing and found about 10 per cent of the sector’s […]
Old Mutual Global Investors has appointed Freddie Woolfe head of responsible investment and stewardship, reporting into chief executive Richard Buxton. Woolfe joins from Newton Investment Management, where he was a responsible investment analyst primarily covering the healthcare and technology, media and telecommunications sectors. Previously he held roles at Hermes Equity Ownership Services and HSBC. Woolfe will […]