When financial news makes the front pages of the broadsheets, 99% of the time it is for the wrong reasons. But when headlines state that billions of pounds have been wiped off stockmarkets, it is important to keep a cool head and take the long view, rather than acting on impulse and converting paper losses into real losses.
BMO UK Property has become the latest open-ended property fund to switch its pricing, as fears over a no-deal Brexit intensify.
The open-ended fund joins several others that made similar moves earlier this year, including property funds run by Kames Capital and Columbia Threadneedle. Such pricing adjustments are essentially a markdown on the value of the underlying properties in the fund, penalising investors who cash in their holdings.
Neil Woodford has lost the support of two big supporters after his move to block investors from accessing their cash earlier this week.
In a move that has rocked the fund management industry, Woodford opted to close the doors of his main fund - Woodford Equity Income - in order to give himself “time and space” to raise money to fund investor redemptions.
When investors buy into an actively managed fund, they will typically be paying a management fee of around 1%. Understandably, therefore, they expect results in the form of market outperformance.
Five and a half years ago, I decided to get some “skin in the game” and open my first stocks and shares Isa account.
Your Fund Choices 2019 provides comprehensive analysis on 201 actively managed Rated Funds and Investment Trusts selected by the Money Observer team of experts, as well as 66 passive choices. Every one has been rigorously reassessed to make sure that it still earns its place on the Money Observer Rated Funds shortlist.
Each quarter, Money Observer takes a look at our active Rated Fund list, providing a breakdown on a sector-by-sector basis.
Investors who were expecting a quiet summer may have been disappointed, as August saw a currency crisis in Turkey, record highs on the US stock market and an interest rate rise in the UK.
Yet those who backed the right funds would have made stellar gains in the month. North American smaller companies was the best-performing sector, up an average of 6.9 per cent in August, followed by technology & telecoms.
Global small-cap stocks have caught the eye after trouncing their mid- and large-cap counterparts by 2.5 per cent a year on average over the past decade. However, while returns have been impressive, they have been accompanied by higher levels of risk, with small caps registering a standard deviation almost 15 per cent higher than larger caps over the same period.