Fidelity International’s move to change its charging structure to a performance-linked fee has been welcomed but is seen as a risky move which may not be sustainable, according to fund selectors around Europe.
Fund selectors applaud the “courageous” step by Fidelity to introduce performance-related management fees across all its funds by next year. But will the move really improve long-term performance after fees, and is the new model sustainable with most active funds failing to beat their benchmark?
The collapse of Lehman Brothers in September 2008 triggered the onset of the global financial crisis, its scale taking almost everyone by surprise. What lessons have fund selectors learnt from its devastating impact, nine years on?
When Donald Trump had just been elected to the US presidency, investors believed this would power US equities to new highs, while emerging market assets were expected to suffer. Four months into his presidency, expectations have changed radically.
2016 saw some highly successful launches of fixed maturity bond funds as investors took the opportunity to lock in attractive yields combined with reduced duration risk. But are such products still worth buying now, with credit spreads having sunk below their long-time average?
After a long period of relative underperformance, value stocks are finally catching up. Are they the most compelling investment opportunity for 2017?
Is accepting a bit more volatility enough to sustain long-term fixed income returns, or should investors also make concessions on liquidity?
Besides higher-yielding bonds, investing in liquid alternatives is another way to future-proof bond portfolios. But such ‘absolute return’ funds bring potential benefits as well as drawbacks.
Everywhere in Europe, investors are having to rethink their strategic fixed income allocation as bond yields keep hitting new lows. When Expert Investor visited Amsterdam recently, we brought together three local wealth managers and an industry consultant to discuss how they take on this challenge.
European investors are sitting on large cash piles, and are waiting for volatility to ease a bit before hunting for opportunities.
Worries about the consequences of Brexit have prompted many fund buyers to increase their allocation to cash and hedge their long positions. However, some put some risk back on at the end of last week as polls swinged back towards ‘Remain’.
European investors reduced their high yield bonds holdings by a net €12bn last winter. But the arrival of spring is heralding a change in sentiment.
