A row of solar panels may still be the image that pops into most people’s minds when they think of sustainable investing. But the socially responsible investment sector is in fact much broader, and it is steadily becoming more mainstream. Two thirds of investors would like their money to support companies that are profitable but also make a positive contribution to society and the environment, according to Triodos Bank.
There are many things we half-expect to lose – umbrellas, sunglasses and socks may immediately come to mind – but we don’t typically anticipate losing pension pots from previous jobs. However, insurer Aegon recently estimated that more than seven million people have misplaced one or more of their pension accounts. Similarly, wealth manager Tilney found that one in five people admit to having lost a pension, often because they failed to notify pension providers when they changed address.
The first ‘M’ in the checklist that Neil Hermon, manager of Henderson Smaller Companies trust (HSC), uses to select shares refers to a company’s business model, which encapsulates its pricing power and competitive advantage. The second ‘M’ relates to its management.
The trade war between the world’s two largest economies has been transformed from threats into reality, as president Trump’s administration officially imposes tariffs on $34 billion worth of Chinese products.
Innovative Finance Isas (IF Isas) were launched in April 2016, providing investors with a halfway house between the low-risk, minimal return cash Isa arena and the stock market risk of stocks and shares Isas – but they got off to a slow start. So what sort of choice is now available, and what risks and attractions are attached to these products?
Average dividend cover – a measure of how sustainable dividends are – has doubled since this time last year among the FTSE 350 companies, according to research by The Share Centre.
Dividend cover is the ratio produced by dividing profit after tax by the total dividends paid out to shareholders. A higher ratio suggests the company has the cash to sustain dividends more comfortably and affordably.
Every month we look at the most popular investment funds on Money Observer’s sister website Interactive Investor. In June, there was little change at the very top of the table of best-selling investment funds, as Terry Smith’s Fundsmith Equity continues to be ii clients’ favourite fund.
There is a belief that people with psychopathic traits – like aggression, cold charm and a ruthless lack of empathy – do well in the financial industry.
So a team of academics, led by Leanne ten Brinke, a social psychologist at the University of Denver, set out to investigate if that’s the case.
Her team studied the video interviews of 101 hedge fund managers. The way each fund manager communicates was analysed for behaviour associated with the ‘dark triad’ personality traits: psychopathy, Machiavellianism and narcissism.
When it comes to indicating the level of risk inherent in an investment trust and its ‘sister’ open-ended fund, the Key Information Documents (KIDs) introduced at the start of the year are tending to mislead investors.
The Association of Investment Companies (AIC) looked at 56 investment trust KIDs and then compared their Summary Risk Indicators to the equivalent indicators in the Key Investor Information Documents (KIIDs) produced by their sister funds.
When it comes to picking the best-performing shares, women outperform their male counterparts by 1.8 per cent a year and beat the FTSE 100 index returns by 2 per cent, according to a new study.
The study analysed the investment returns of 2,800 Barclays Smart Investor customers over a three-year period. It was carried out by professor Neil Stewart at Warwick Business School, who found that annual returns on investments for men are only 0.14 per cent above the performance of the FTSE 100 in comparison.