Beyond the reasonable – retail investors’ income demands
Retail investors expect their investments to produce an income far beyond what they can reasonably hope for, according to the annual Schroders Global Investor Study.
Author: Tjibbe Hoekstra
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UK stocks to be hit most by Brexit, stress test shows
UK equities are the most vulnerable asset class in the immediate aftermath of a Brexit, a stress test conducted by the risk modelling provider Axioma showed.
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PA ANALYSIS: Investors in wait-and-see mode as data give few hints
Financial markets have lacked direction in recent months, with the main equity indices all very close to where they were at the start of the year. Macroeconomic data are not strong enough to reinvigorate the bull market, yet not sufficiently weak to stoke fears of recession.
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Top-quartile European equity funds – what’s their secret?
The five European equity funds that managed to finish top-quartile for the past three consecutive years do not have a great deal in common. But there’s one feature they (almost) all share.
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Only 1% of European equities managers stay top quartile
Only slightly over 1% of European equity large cap funds have managed to consistently secure a top-quartile finish over the past three years, fresh research by Expert Investor reveals.
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PA ANALYSIS: Is there a future for single country equity funds?
European equities have been the best-selling asset class with European investors in recent history. However, this hasn’t benefited those funds that invest exclusively in equities listed in one particular European country.
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PA ANALYSIS: Forget active share, it is active fee you should focus on
A poll of European fund selectors conducted last year by Portfolio Adviser’s sister site, Expert Investor, showed that active share is an important fund selection metric for more than 80% of them. However, very few fund houses regularly update investors about the active share of their funds. Should they be more open?`
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Smart beta provider ERI to abolish fixed management fees
In an unprecedented move, ERI Scientific Beta, a provider of smart beta indices that is an offshoot of the EDHEC Risk Institute in France, today announced it will offer its mandate clients the option to only pay performance fees.
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Is Brexit really the main cause of sterling weakness?
Sterling is down almost 10% against the euro in the past six months. Many people automatically assume this is because of fears over Brexit. However, there are probably other factors at play too.
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Portfolio diversification benefits stop at 40 stocks
As soon as a fund’s portfolio reaches 40 stocks, the benefits of portfolio diversification diminish. Therefore, fund managers should strive to have no more than 40 holdings. That’s the conclusion of a study conducted by Nomura Asset Management.
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When it comes to high active share, patience is key
Recent research by Martijn Cremers, who first coined the concept of active share back in 2009, shows that high active share (US equity) funds that trade relatively little have a better potential for outperformance than other funds. This could be the case because patience is often required to exploit market inefficiencies, Cremers told Expert Investor.
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The Great Rotation in reverse – fixed income ETF inflows reach record
European investors have been pouring unprecedented amounts of money into fixed income ETFs this year, while they are taking money out of equity ETFs, according to data from Blackrock.