Fund managers struggle to beat their benchmark in the US market at the best of times. With thousands of participants and analysts, it is often argued that the S&P 500 is just too efficiently priced for stock-pickers to consistently provide outperformance.
Around half of British businesses say they expect the UK to enter into recession in 2020, according to new research from Stenn, a finance firm.
In total, 46% of UK firms surveyed predicted a recession. The biggest risk cited was geopolitical tensions, including trade tariffs, Brexit and regional instability.
The Association of Investment Companies (AIC) has revealed the 20 investment trusts that received the most website page views in 2019.
The number of page views a trust gets on the AIC’s website can be taken as indicative of what investment trusts, or types of investment trusts, investors have been interested in.
Investors by now should be no stranger to global political instability having an impact on their portfolio. Throughout the 2010s, investors have had to navigate the eurozone crisis, the Brexit vote and now the unfolding US/China trade war, which has seemingly spilled into a broader confrontation between the two economic superpowers.
Over the past decade, the stock market has been dominated by large-cap growth companies, primarily listed in the United States. Companies such as Amazon, Apple and Facebook have emerged, or solidified, their place among America’s greatest companies, rewarding shareholders accordingly.
However, when it comes to investment trust returns over the past decade, the story is slightly different.
On 3 January, the United States launched an airstrike that killed Iranian general Qasem Soleimani. Both a key military and political figure in Iran, said to be the second most powerful person in the country, Soleimani’s death has ratcheted up regional tensions, with Iran vowing retaliation.
Scottish Mortgage ended 2019 the most popular investment trust, once again being the month’s most-bought trust in December, according to the latest data from interactive investor (the parent company of Money Observer).
The UK’s inheritance tax (IHT) rate is more than double the European Union’s average, according to analysis by UHY International, an international accountancy network.
The report looked at how much an individual passing on a estate worth £2.4 million would pay around the world.
Despite the political and economic uncertainty, both in the UK and abroad, investment trusts were high in demand in 2019, with secondary fundraising hitting a record high.
The amount of money raised by existing investment trusts issuing new shares reached £6.9 billion, beating the previous all-time high of £6.3 billion in 2017 and was way ahead of 2018, when £4.8 billion was raised.