Income Strategies – Opportunity Cost

Income strategies continue to be remarkably popular. To an extent this is understandable given many retirees rely on their defined contribution pension pot to provide income that funds their retirement.

There is something satisfying about watching regular income flow into your portfolio but many investors fail to grasp that a paid out dividend is also a missed opportunity to stay in the market. Over the long term, staying in the market has proven itself to be the better option when seeking capital returns.

James Klempster (CFA) of Momentum Global Investment Management, one of our UK regulated, discretionary fund managers shares his view. Click here to view.

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Weekly Market Update

News this past week:

  • Markets climb on ‘Santa Claus rally’
  • ECB extends quantitative easing programme
  • Volatile week for Italian banks following referendum
  • Encouraging trade data out of China
  • Oil surges after more countries agree to cut production

James Klempster (CFA) of Momentum Global Investment Management shares his view:

As this is my final blog of 2016 I felt it an apt time to look back on the year and to look forward to some key issues for 2017.  My colleague, Glyn Owen, will be writing a far more detailed review and outlook which will be published in the coming days .  2016 was a year of mixed fortunes for investors, a very weak start set precedence for what looks likely to be a decent year for equity markets. 2016 will be best remembered for its twin political surprises of Brexit and Trump, or Brump, if you will. Whilst both being seismic-scale political events, the fact that their respective domestic markets brushed them off underscores the fact that a macro or political story is not the same as an investment case.  To put it another way – even if you had called both elections correctly, would you have positioned your portfolio to benefit from an equity rally in either case?  Probably not.

To read the full update please click here

A Quest for Genuine Diversification

QROPSAs the cliché goes, there are no free lunches, but when investing, diversification is as close to one as you will get.

At Intelligent Investments we believe that a lack of true diversification and overvaluation of certain assets has introduced more risk to portfolios than many investors may appreciate, despite on the face of it having exposure to multiple asset classes and holdings, making them vulnerable to unnecessary drawdowns.

Our Discretionary Investment Managers, including UK regulated Momentum Global Investment Management have been looking beyond traditional asset classes for investments that can improve both the risk and return characteristics of our clients’ portfolios.  This has led them to add holdings in certain ‘liquid alternative’ strategies and gold, which we believe will play a valuable role in portfolios going forward.

Click here to learn more and the rationale for these changes.

Click here to learn more the about benefits of having your investment or pension professionally managed by a UK regulated discretionary investment manager.

Pension Funds Pile on Risk Just to Get a Reasonable Return

An investor used to get a 7.5% return by holding safe bonds. Now, three times more risk gets you the same returns as twenty years ago, research finds.

What it means to be a successful investor in 2016 can be summed up in four words: bigger gambles, lower returns.

Learn more