- In the search for yield, UK Equity Income is a key component of client portfolios.
- There are a number of UK Equity Income ETFs to choose from, each tracking a different methodology.
- This study looks at the different index methodologies’ impact on Sector Allocation for investors that focus on the business cycle.
John Authers’ Long View article in the FT this weekend addresses market timing. While he claims that just passive investors are such bad timers, we would go further: most are.
Attempts to time the market (choosing the right moment to buy or sell into risk assets) are a mug’s game.… Read the rest
Whilst advisers and investments are comfortable and familiar with the simple term “funds” (has anyone heard of an “CIS (Collective Investment Scheme) Conference” or being an “AUT (Authorised Unit Trust) investor”? There is much less familiarity with the once-institutional and now pervasive ETFs (Exchange Trade Funds). … Read the rest
- 2016 outcomes for our multi-asset Max Sharpe and Min Volatility did what they say on the tin.
- Dynamic risk-based strategies can provide low correlation differentiated returns to provide a low-cost, liquid alternative to traditional “Alternatives”
- A quant-based approach to alternative investing is likely to be cheaper and smarter than hedge funds which are vulnerable to manager’s behavioural and emotional biases
Smart beta strategies are “smart” because they take a scientific, quantitative and objective approach to investing by combining a range of index-tracking ETFs with different market risk or “beta” exposures.… Read the rest
- Growth rates cut compared to pre-referendum estimates
- Inflation estimates raised on weaker sterling, but possibly not far enough
- Focused spending on infrastructure and innovation is welcome
Growth estimates cut
UK GDP’s growth rate has been downgraded relative to pre-referendum expectations, with a cut from 2.2% to 1.4% for 2017E and from 2.1% to 1.7% for 2018E.… Read the rest
- Trump looks set to become next US President
- Both pollsters and bookies called this totally wrong
- Asymmetric downside risk means near-term mark down of risk assets
Trump swept to victory with 42 of 50 states declared, Trump leads Clinton 244 electoral votes to 215, with 26 to win, collecting 48.2% of the vote vs Clinton 47.1% (as at 0630 GMT today).… Read the rest
October saw a sharp one month loss for global sovereigns owing to inflation fears, raised interest rate expectations and declining Central Bank appetite for QE.
In the US, prospects of a December Fed Rate hike saw 10 year yields clime 30bp on month and 76bp from summer lows to 1.26%, whilst stronger growth numbers raised inflation expectations and positive performance for TIPS.… Read the rest