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Active, passive, or somewhere in the middle
Active ETFs, which use a process to select securities that is not rule-based, have begun to increase in both number and assets over the past several years, but they remain a small part of the…
Where’s the clever money going? March 2018
It’s been an eventful start to 2018, with a return to a more volatile environment as global markets climbing to record highs in January, before several days of dramatic correction at the start of February.…
The Big Waiting Game on the US Economy
It feels very much like a big waiting game at the moment. Economically the consensus became very excited about synchronised global growth as 2017 ended, and of course the US tax cuts were supposed to…
Questioning the Manager – Brexit, Opportunities for Income and Disruptive Technology – Henderson High Income Trust
Fund Manager David Smith discusses whether the development of Brexit impacts upon his investment process, which sectors he is finding opportunities for income, as well as his approach towards disruptive technology. KV.widget({"guid": "4V8lpT9uhoE","type": "playback","playerType": "full","showInfoPanel":…
Another Goldilocks Employment Report
Just when equity markets needed an extra boost, the US released yet another “Goldilocks” employment report. Strong jobs growth surely indicates a strong economy; great news for corporate profits that are being turbo-charged by the…
Slow and steady
In the face of recent market volatility, Jonathan Davis explains why a calm approach is best. No matter how much wise advice they receive in advance, few investors find their first encounter with a sharp…
Argentine Mining – Light at the End of the Tunnel
Mauricio Macri’s surprise 2015 presidential victory raised hopes in Argentina’s mining sector. After all things couldn’t get much worse. Under his predecessor Cristina Kirchner mining had been hit by a 5% export tax imposed in…
What should the last month have taught investors?
Ben Kumar, Investment Manager, Seven Investment Management Someone once told me that on average, we won’t remember 10% of what we read, 20% of what we see and 30% of what we hear. There is…
Risk of Policy Error Clearly Rising – Some Key Charts and Index Levels
What a difference a few weeks make. At the end of January, financial markets were melting up, commentators were salivating over the US tax cuts within an environment of global synchronised economic growth. Investors of…
Taking AIM
"Come back and see me when your market cap is £100m". A phrase commonly heard by the management teams of smaller companies. To some degree, risk, liquidity and time-management makes this understandable but we believe…
The outlook for VCTs
Demand for VCTs in the 2017-2018 tax year has been very strong. From 6th April 2017 to 31st January 2018 VCTs have raised £483 million, more than double the £221 million raised from 6th April…
Signs of Short Term Improvement in Bond Markets
Having raised the specter of higher bond yields in recent months, we think that the market is showing signs that there may be some short term reprieve. If correct, and having said several times in…
Week in review: apocalypse now? No, not yet.
Generally, it’s only reports of death that are said to be exaggerated, but the other Three Horsemen of the Apocalypse all made an appearance this week. Happily, though, investors seemed relatively unaffected by a sense…
Election Season in Latin America
From a distance, Latin America shows a tempting array of positive indicators. In most of the region’s economies, the painful slowdown triggered by the 2014 collapse in commodity prices has largely ended. Economic growth across…
February: aggressive US Treasury selloff is historically a buying opportunity For Professional Investors Only
People talk of the 2013 ‘taper tantrum’ as the modern-day equivalent of the enormous 1994 bond rout, where both occasions saw the Federal Reserve unexpectedly communicate a significant change in monetary policy. But the Treasury…
From little acorns
Venture Capital Trusts or VCTs are becoming increasingly popular, with demand boosted by valuable incentives for investors in these tax shelters and tighter restrictions elsewhere. However, smaller companies and start-ups held within this type of…
Surely Not Straight Up Again?
Equity markets, having reached short term oversold levels that even we identified last week, have rallied very smartly in the last week or so. This rally is very similar to other V-shaped rallies we have…
Week in Review: US bonds: shaken and stirred
Higher US inflation sparked a sell-off in bonds this week. Investors’ fear of an overheating US economy increased this week as the US government reported that consumer prices rose more quickly in January than analysts…