With large swathes of the economy in shutdown, many people may now be facing the prospect of either losing their job or facing a sharp reduction in their income. While the government has outlined various schemes to help support those affected by the economic fallout of coronavirus, inevitably some people will fall through the cracks.
A number of investment trusts have asked shareholders to not attend upcoming annual general meetings (AGMs), in light of coronavirus.
Anyone who has recently inherited shares may be entitled to a refund on previously paid inheritance tax (IHT) due to the recent stock market falls, according to private client law firm Wilsons.
IHT is calculated on the value of assets on the date of the deceased passing, with the tax due to be paid six months from that date. Therefore, any shares inherited before the recent market crash will have incurred a tax bill reflecting what were historically high prices for shares.
Countless investment gurus in the past have made the simple point that when the markets fall, rather than be despondent, investors should go out to buy.
The FTSE 100 rose by 9.1% yesterday (24 March), its second best day on record, according to data from Refinitiv.
The rally has continued today (25 March), with the FTSE 100 up roughly 5% (at the time of writing, 9am). The blue-chip index is now at its highest level in almost two weeks.
The past decade has seen the explosion in popularity of ESG (environmental, social and governance) funds. Many arguments have been made as to why investors should consider them, from the moral to the performance based.
Since the global outbreak of the coronavirus, many of the measures taken by governments and central banks around the world have been described as “unprecedented”. The latest such measure has been the announcement from the US Federal Reserve that they will engage in unlimited quantitative easing and start to lend directly to certain US businesses.
One of the promises of actively managed funds is to better navigate choppy times in markets. Passive funds simply replicate the performance of the market, and therefore provide performance roughly in line with that of the market. In contrast, managers of active funds, so the argument goes, are able to make decisions about what is in their portfolio, so in theory should outperform an index during times of market turmoil.
These have not been a good three months for our global value ETF portfolio, which fell in value by 6.9% between 2 December and 2 March. The total return since purchase at the start of September 2019 is also down, by a disappointing 7.7%.
This update, the latest for our income-focused investment trust portfolio, covers the period from the end of November to 28 February, so it has not been affected by the huge market falls in early March.