While they are perhaps not as well-dressed – or cosmetically enhanced – as the Kardashians, there is a select group of celebrity fund managers who regularly outperform and are endlessly profiled in the media. Deemed to have the Midas touch, these individuals often control staggering large amounts of money too.
Multi-asset funds do exactly what they say on the tin: they contain a combination of different assets. Someone else picks the assets so that you don’t have to, serving up diversification on a plate.
The dominant theme in November was the successful trials of COVID-19 vaccines. The announcements by Pfizer, Moderna and Astra Zeneca turbocharged markets and led to some of the strongest monthly returns for stock markets on record! The MSCI World Index posted an exceptional 12% rise in November, coming close to matching the best ever monthly return for the global stocks benchmark. European and UK stock markets were the strongest performers.
So, you have decided you want to incorporate some environmental, social and governance (ESG) principles into your investment portfolio. You have read our guide on the different ESG styles of investing, but now you are faced with a key question: do you choose an active or passive fund? As ever, it all depends on your goals and how much you are willing to pay to achieve them. To help you decide, we take a look at the differences between active and passive ways of investing sustainably and cover some of the pros and cons of each.
We would all like to think that we are rational human beings that make sensible and logical decisions. Sadly, this is far from the truth and in reality we often make decisions fraught with biases, many of which we aren’t even aware of. This is where behavioural economics comes in, the study of behavioural biases that can impact our decisions. A subset of this study is called behavioural finance, which specifically looks at biases that impact investment decisions. This is a huge and growing topic, so this post aims to introduce the concept gently.
The investing version of the seven deadly sins might not send you straight to hell but could still send your returns up in smoke. Here are a few of the sins that can savage your portfolio – and what you can do to avoid temptation!
Once you’ve decided on an asset allocation strategy that suits your plans and expectations, it is time to get more granular within each asset class. There are a number of ways to do this, for example last week, we wrote an introductory piece on Growth versus Value style investing. Another way to mix up your portfolio is to invest in specialist funds to express a particular view on the future direction of markets.
Like the weather the investment backdrop in October was largely gloomy and unsettled, with some of the biggest stock market falls seen since spring. The MSCI World Index fell by 3.0% with UK, US, European and Japanese markets all in negative territory.