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Why remaining invested can outshine volatile markets
By Brooks Macdonald Over the past two decades, several major global events – including most recently the coronavirus pandemic – have prompted investors to flee financial markets, but data shows this could have been a mistake. When it comes to achieving long-term financial goals, investing – and remaining invested – tends to be the better […]
Outsourcing – good for clients, good for business
By Sanlam The operational benefits of having an advisory firm’s investment proposition run by a third-party investment manager are increasingly well understood. Typically, this means using a discretionary investment manager to run a discretionary model portfolio. These operational benefits include: All clients achieve the changes in their portfolio at the same time, meaning they all […]
The Changing Nature of Active Management
By Daniel Needham, Global Chief Investment Officer, Morningstar Key Takeaways Active management may not be in decline, rather the type of active management is changing to benefit active asset allocation. This presents investment opportunities for long-term asset allocators. Research shows that investors need to not only be active to outperform; they need to be patient. […]
How does a multi-asset investment process work in practice?
The principal objective of investing is simple: earning a return in excess of cash that compensates the investor for the risk taken. The higher the perceived risk, the higher the realised return should therefore be, writes Henning Meyer, Portfolio Manager at Sarasin & Partners. This means that any investment is essentially an exchange of risk […]
Covid-19 and beyond: The active advantage to portfolio management
The rapid changes in environment over the past year, and what this means for sources of long-term portfolio growth in a post-COVID-19 era, have put the importance of an active approach to portfolio management firmly back at the front of investors’ considerations, write Brooks Macdonald. When managing a portfolio, having the flexibility to actively adjust […]
A balancing act for income in 2021
By Eugene Philalithis – Head of Multi Asset Investment Management, Europe & Portfolio Manager of the Fidelity Multi Asset Income fund range What is your investment outlook for 2021? Overall, we are cautiously optimistic on the investment outlook for 2021. The team expects periods of heightened volatility through the year, as markets respond to monetary […]
The K is not OK
The consensus is that we are in a K-shaped recovery – that means winners and losers. We are not all in this together, writes Ruffer Investment Director Duncan MacInnes The unique shape of the Covid-19 crisis and accompanying recession has meant some industries have thrived whilst others have dived. In caricature, everyone now uses Zoom […]
Remind me why you own bonds?
Why low bond yields may mean you need to rethink your portfolio construction – by Hermione Davies, Investment Director, Ruffer The future looks even more uncertain than usual. Normally, uncertainty translates into lower asset prices. But not this time. And with the prices of all assets buoyed by abundant liquidity, we fear a traditional ‘diversified’ […]
How has Covid-19 impacted UK dividends?
Alice Logue, Manager Research Analyst, Fidelity Multi Asset team As virus containment measures stepped up around the world, many businesses faced (and still face) prospects of a significant drop in revenues, or no revenues at all, whilst still facing recurring fixed costs (e.g. rents, wages, leases). This has placed a notable drag on working capital […]
The benefits of a multi-asset approach to income investing and how this potentially opens income opportunities
By Brooks Macdonald While headlines announcing equity dividend cuts may be alarming for those seeking income, it is important to bear in mind that this is only one of a broad range of income sources available to multi-asset managers. By actively managing a portfolio’s allocation to each type of investment available, we can see an […]