There has been a growing chorus of investors and pundits decrying bubbles in nearly every major asset class - rates, credit, equities, and even (once more) property.
An article in yesterday’s Financial Times, entitled “’150 people’ will control UK funds”, underscores what has been common knowledge for some time - that the investment consulting industry has become increasingly concentrated.
Since Gatemore’s inception nine years ago, we have been advocates of using ETFs (exchange-traded funds) and other low cost options in traditional asset classes such as developed market equities, core fixed income and even some emerging markets.
As evangelists of diversification, Gatemore has long allocated to commodities. We believe the asset class can offer uncorrelated returns while acting as a hedge against inflation.
Chinese equity investors have had a torrid year. Over the past twelve months, moderating GDP growth, continued fears over a credit “bubble,” and the beginnings of a bond market correction have driven Chinese markets down 9%.
Since the Chancellor’s budget came out last week, there has been much in the press on the imminent decline of annuity providers. In fact, over the past two weeks we have seen stock prices of the pure-play annuity providers get cut in half or more.
As driving course instructors point out (without a hint of irony) – no one in their right mind would drive forwards by looking only in their rear view mirror.
In an article in Engaged Investor Mark Hodgson comments on the changing face of the fiduciary management industry and warns against using traditional consultants and ‘all inclusive’ plans
Are there lessons for other pension fund trustees in the news that the £20bn government-mandated Pension Protection Fund (PPF) is embracing alternative assets? We think so.