How to prepare your portfolio for inflation December 2, 2016 | City Talk Concerns about inflation were already on the rise. Donald Trump’s victory in the US election has further stoked expectations that price pressure, absent in most Western economies since the financial crisis, may make a return in 2017 and beyond. The basics Inflation is a measure of how fast the prices of goods and services are [...]
The ‘75%’ chance that the Santa Rally exists December 2, 2016 | City Talk Stock markets are more likely to rise in December than any other month, according to analysis of nearly three decades of data. The analysis conducted by Schroders, which covers the world’s largest markets, adds to the debate over the existence of the “Santa Rally”, an alleged effect often dismissed by seasoned investors. Our analysis measured two [...]
FCA wants customers to shop around for the best bank interest rates and have revealed who gives the best returns on cash December 1, 2016 With interest rates at rock bottom levels we've all become accustomed to the fact we shouldn't expect much of a return from our bank accounts. And today, the UK's financial watchdog named and shamed the banks paying the lowest interest rates on cash savings accounts. Read more: City watchdog warns of asset management "market failure" [...]
After the Trumpflation trade, should investors expect a Santa rally in equity markets this month? December 1, 2016 Brad Holland, fund manager at Nutmeg Savings and Investments, says Yes. Central banks across the world have been desperately trying to create inflation for years now. If inflation did return to the radar screen, monetary policy wonks could celebrate that the past decade’s extraordinary policy measures are finally beginning to lift the global economy out [...]
City veteran Sir John Beckwith launches new asset management business November 30, 2016 Sir John Beckwith’s Pacific Investments has announced the launch of a new asset management business. Pacific Asset Management (PAM) will initially have $250m (£201m) in assets under management (AUM). Pacific Investments has previously founded Liontrust Asset Management, River & Mercantile, Nevsky Capital, Thames River Capital and Europa Capital. These businesses currently manage more than $20bn [...]
Healthcare trust to float on Friday despite falling short of £200m target November 30, 2016 Bellevue Asset Management is set to float a new investment trust on the London Stock Exchange on Friday. BB Healthcare Trust missed its target of £200m, but will list on the main market this week after raising £150m. Paul Major, who will co-manage the fund with Dr Daniel Koller, played down the £200m target, saying the minimum [...]
Who’s afraid of the big, bad pensions deficit? Contrarian stock-pickers can find hidden value in companies with large holes in their defined benefit pension funds November 30, 2016 For some UK companies, having a large pension deficit is like a proverbial albatross around the neck – unsightly and foreboding. This can make the shares appear cheap on some measures. But valuing stocks with large schemes is difficult, due to the enhanced complexity of pension accounting. Actuaries and trustees make numerous assumptions regarding future [...]
A vote for No in the Italian referendum is unlikely to precipitate “Italeave”, but could worsen the situation facing the country’s beleaguered banks November 29, 2016 Since the European sovereign debt crisis, critics of the euro have asked how long the single currency can continue when the economies which use it are on such divergent trajectories. Now, after a third Greek bailout, a Brexit vote and Donald Trump’s presidential win breathing hope into eurosceptic parties across Europe, their prophesy may be [...]
Investors should give thanks for record highs – but prepare for Hard Trump November 28, 2016 Thanksgiving, a national holiday of reconciliation, took on greater significance in the US this year as families tried to put political differences aside and find common ground in their love of turkey, stuffing and pumpkin pie. President-elect Donald Trump attempted to mend the wounds of a divisive election campaign on the eve of Thanksgiving by [...]
Meet the Edmond de Rothschild asset manager who launched a UK-focused fund just before the referendum (and doesn’t regret it) November 27, 2016 With the European Union referendum just two months away, April 2016 may have seemed like a bold time for a European asset manager to launch a new fund focusing exclusively on the UK – even if it looked like we were headed for a Remain vote. Shares in companies such as ITV, BT, and Marks [...]