Fund Research & Insights

Fund Managers Warn of Overvalued UK Stocks

Market News - January 3, 2017

Colin Morton, Franklin UK Equity Income Many large caps are at the highest valuation levels that I have seen in my career, trading on price-to-earnings ratios that would normally make investors cautious. With alternative sources of returns, such as traditional bonds, looking so unattractive, it is understandable why investor behaviour has driven UK equity valuations higher. For some, these large caps offer perceived safety because of their solid pricing and powerful earnings. Equally...

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3 Top Rated Absolute Return Funds

Market News - December 16, 2016

Newton Real Return Morningstar Analyst Silver Rated Newton Real Return is a strong choice for investors seeking a target-return multiasset fund with an emphasis on capital protection. Iain Stewart is among the most experienced multi-asset target-return managers in the United Kingdom, and he has run the fund since inception in April 2004. Before that, he managed traditional balanced and global-equity mandates based on Newton's theme-driven process and has around...

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How to Invest in Gold

Market News - December 13, 2016

Investors have been snapping up gold funds this year – as geopolitical threats added uncertainty to markets, the perceived safe haven has provided welcome cover. The gold price started the year at $1,074 per ounce and rose as high as $1,367 in July following the Brexit vote, subsequently falling to $1,251 and spiking again to $1,305 in the midst of US election uncertainty in November. IG Group’s Chris Beauchamp, says that...

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UK Stocks Drag Down European Equity Funds

Market News - November 30, 2016

For European equity fund managers, the UK has been the worst performing country year to date, though that has largely been driven by currency translation. The pound has tumbled against the euro by more than 15% in 2016. But in pound terms, the Morningstar UK Index has returned a hefty 13.5% in 2016. Most top-rated funds in the Europe large-cap equity categories were somewhat underweight the UK. The average exposure to UK...

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Fund Management Fails to Become More Female Friendly

Market News - November 29, 2016

Women are still widely underrepresented in fund management across the globe, and there's been little improvement since the 2008 financial crisis, according to new data compiled by Morningstar. Morningstar began formally studying fund managers by gender in 2015 after observing first-hand over decades that there are disproportionately fewer women in the fund industry. We studied the rates of women managers in three countries, the United States, Spain, and Hong Kong, and found that...

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What Funds are Investors Buying and Selling in 2016?

Market News - November 23, 2016

What have you been buying and selling this year? The most popular fund of 2016 so far is the Bronze Rated Fundsmith Equity, recording £2.7 billion inflows year to date according to the latest figures from Morningstar Direct. Investors also poured cash into the Bronze Rated Invesco Perpetual Global Targeted Returns fund to the tune of £2.4 billion, making it the second most popular fund of the year. And have investors’ purchases paid...

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Invesco Perpetual High Income vs Passive Funds

Market News - November 17, 2016

Fans of ETFs and tracker funds regularly accuse actively-managed funds of failing to beat the benchmark, insisting that investors would be better off ditching stock selection in favour of the whole index. The stats back up the claims – fees are the only reliable predictor of future returns, and post-charges, the vast majority of the 4,000 odd funds available to private investors fail to beat their passively-run alternative. However, there are a...

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Short Term Investing: Damaging Your Portfolio Returns?

Market News - November 11, 2016

2016 has been a year of considerable market noise: Turmoil over China at the start of the year has been followed by political disruption in the form of Brexit, and now the US election. Fund managers have had much to distract them, but many would argue that they should be able to see through short-term turmoil. Do they? To what extent is short-termism a problem for investors? The prevailing view is that investors...

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October: Mergers, Fund Launches and Manager Walk-outs

Market News - October 31, 2016

It has been a busy month in the investment industry with a number of new fund launches, two investment houses merging, several fee changes announced – plus the departure of a leading fund manager. These changes may have been in response to shifting fundamentals in the investment industry. New research published this month showed sales of low-cost ETFs have continued to grow, with ‘smart-beta’ ETFs now at record levels. At the same time the...

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How China is Dominating Emerging Market Funds

Market News - October 19, 2016

At its May 2016 index review, MSCI completed the addition of a number of US-listed Chinese companies into its MSCI Global Investable Market Indexes. As a result, China’s weighting has increased in a number of key indexes, and its role in global portfolios has also been amplified. In addition, we believe the indexes now better represent the underlying growth drivers of the Chinese economy, which has various implications for portfolio managers and investors...

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