Category: Portfolio Construction

HOW MUCH SHOULD PORTFOLIOS ADAPT OVER TIME?

17/10/2023

Markets don't stand still. Should portfolios?
We explore two apparently opposing schools of thought.
Read the full article in FT Adviser

equity allocation: the dispersion game

24/8/2023

2022 was a reminder of the importance of dispersion within equity markets. It turns out this lesson remains relevant in 2023 but with very different - almost opposite - themes.
Click here to read the whole article

can we trust the yield curve?

28/7/2023

[3 min read, open as pdf]

What is the yield curve?
Why might it invert?
What does this mean in our current circumstances?

the lure of cash

27/7/2023

In the ultra-low interest rate era that followed the financial crisis, there was little incentive to allocate to cash
But should the promise of a now-meaningful risk-free return prompt investors to switch away from equities?
Click here to read the full article: https://www.ftadviser.com/opinion/2023/07/27/the-lure-of-cash

private equity faces a tougher environment

14/7/2023

[3 min read, open as pdf]

The pursuit of yield pre-2021 was supportive for private equity
Conditions are now hostile on a number of fronts
Lack of demand prompts a meaningful discount to NAV

PROPERTY: RETHINK & BE READY

2/6/2023

[5 min read, open as pdf]

Property is a traditional Alternative Asset diversifier
Performance has suffered on slowing growth and rising rates
Consideration of geography, fund format and liquidity is key

Japanese equities look quietly compelling

5/5/2023

[3 min read, open as pdf]

Japanese equities entered the doldrums post-1989
Recovery has been slow but - since the financial crisis - sustained
The outlook for investors is promising

FOr small caps, active management can pay

28/4/2023

[3 min read, open as pdf]

Data shows small-cap funds more likely to outperform benchmark
Dispersion helps to deliver distinctive results
Small caps attractive after outsized derating

putting cash to work with money market funds

17/4/2023

Higher interest rates following increases in the Bank of England “Bank Rate” means yieldson cash are attractive once again. There are different ways to access cash yields: bank deposits, platform cash and moneymarket funds each have advantages and disadvantages. Minimising frictional costs, and maximising flexibility is key when developing a cashmanagement strategy, in our view.
In this research note for our clients, we explore the role of money market funds in providing a low risk platform-based Investment with a yield similar to Bank of England rates.
Further reading:
Read our October 2021 comparison of money market funds and fixed time deposits