A rate hike in the US is a greater probability than it has been for some time

The long anticipated rise in yields got underway this week. Credit has outperformed rates and inflation has outperformed nominal government bonds. Rates have bottomed – even the Brexit hit UK economy grew at 0.5% in the third quarter, reducing the need for another UK rate cut. A rate hike in the US is a greater […]

31 October 2016 by Chris Iggo

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Pensions – sounding the retreat?

Last week the government announced a major U-turn in pension policy.  George Osborne’s much heralded March 2015 announcement to allow pensioners to sell their annuities in exchange for a lump sum was cancelled just a few months before it was due to go live.  The government’s statement on this issue can be read here. Yet […]

25 October 2016 by Steve Herbert

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Is the party just getting started in India?

I heard it phrased recently that “the party has barely started” in India. With annual Diwali festivities taking place next week, this might have been the topic of conversation. Given I was chatting with a group of fund managers though, I’m inclined to think they were referring to the Indian economy. There are good reasons […]

20 October 2016 by Darius McDermott

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‘I want a full, frank and fair discussion with my clients on fund costs. Fund managers need to help’

The subject of fees, particularly those that are not readily identifiable in fund charging structures, is one that continually appears in industry discussions.  There has long been a debate about what the effect of these charges are and how they impact upon an investors expectations of returns. Explicit fees are obviously those that are readily […]

18 October 2016 by Lee Robertson

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Pensions Advice: A casualty no more?

You probably don’t need me to tell you that UK pension savings have been undergoing a rather radical set of alterations in recent years.  The last decade has seen changes large and small, with the most significant including pensions “simplification”, auto-enrolment, charge caps, commission bans, and – most recently – the introduction of Pension Freedoms. […]

9 October 2016 by Steve Herbert

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Why would a foreign investor take the risk on the UK when its future economic and political position in the world is not known?

A heavily indebted nation withdraws from a massive trading block and its central bank cuts interest rates to 0.25 percent and resorts to buying corporate bonds in an effort to underpin confidence in the economy. What do you think its currency would do, go up or down? Welcome to post-referendum Britain. The pound is falling, […]

7 October 2016 by Chris Iggo

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For investment grade corporate bonds it will be the rate move that dominates total returns short-term

One of the fundamental implications of quantitative easing (QE) in the bond markets has been the impact of pricing of the highest quality bond assets. Investors pay a cost (in terms of reduced yield) to own the safest of assets. But increasingly they get pushed down the credit curve so over time ratings buckets become […]

30 September 2016 by Chris Iggo

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From Arkwright’s to Amazon

Napoleon Bonaparte once derisively described Britain as a “nation of shopkeepers”. It was and is a rather lame insult, but like many such comments contains more than a grain of truth.  For despite our tiny geographical presence the UK remains one of the largest economies in the world. So shopkeepers and business people we Brits […]

28 September 2016 by Steve Herbert

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How to buy equities after Brexit

Almost three months on and the UK stock market has soared since the Brexit vote, up more than 10% from June 241. It’s been a nice morale boost amid some fairly gloomy predictions for Britain’s future, not to mention a welcome lift to returns for investors. Market reactions so far have been mostly driven by […]

22 September 2016 by Darius McDermott

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From austerity to neutral, and beyond?

Bond yields have risen over the last week. Not by much but by enough to wake up investors to the risks of depressed risk premiums and the dangers of central bank dominance. The policy backdrop might not change materially any time soon but there is enough talk about different policy directions for investors to understand […]

16 September 2016 by Chris Iggo

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