The past three and a half years of Brexit uncertainty have seen a clear investment trend play out, which has turned into herd-like behaviour. Investors are reducing exposure to the UK, and redeploying proceeds into funds that invest with an unconstrained global remit.
Having recently celebrated its 30th birthday, Templeton Emerging Markets Investment Trust (TEM) is one of the longest-running emerging market investment funds or trusts available to UK investors.
Over the period the trust has seen huge changes in the parts of the world it invests in, including the economic transformation in the Asia-Pacific region and the opening up of communist countries to global investment.
A passive storm has hit the active fund management industry over the past decade, with a growing army of self-directed investors choosing to accept the returns produced by stockmarket indices.
Big reductions in management fees over the past seven years or so, with some index funds and ETFs now costing just a tenth the price of an active fund, have been one key driver towards passive.
In life, three things are certain: death, taxes and investment experts tipping Japan as their star stockmarket performer at the start of every calendar year. The beginning of 2019 proved no exception, with investor enthusiasm even higher than usual on the back of Japan’s main stockmarket index, the Nikkei 225, tumbling into a bear market in late 2018, having fallen 20% from a peak at the start of October.
Laura Foll has been at Janus Henderson since she joined its graduate programme in 2009 straight from university. Like many of her generation, she joined the workforce while the full ramifications of the financial crisis were still playing out and the country was deep in recession. “Thankfully, the company didn’t cancel its graduate recruitment scheme in the middle of the crisis. It was either this or go back home and live with my parents,” she says.
Richard Penny has done his homework. He enters the meeting room on the first floor of Crux Asset Management’s Pall Mall offices clutching the latest issue of Money Observer and keen to talk about a recent feature on whether the size of a fund matters. He thinks smaller funds do better – which bodes well, as in September he launched a new special situations vehicle at the boutique fund firm, which he joined this summer after 15 years at investment giant Legal & General.
Praveen Kumar likes investing in businesses run by young, dynamic, entrepreneurial risk-takers. He looks for fast-growing companies that are disrupting their industries.
Japan, you might think, is not an obvious hunting-ground for firms with these characteristics. The country has gained a reputation for poor corporate governance, decades of deflation, and notoriously cautious savers who are unwilling to put their money in the stock market. It is not known as a nation of risk-takers.
Naming a fund after a famous investor comes with its own unique set of risks. What if that individual finds themselves the subject of a scandal or their investment approach suddenly falls out of favour? The CFP SDL UK Buffettology fund was named after, you guessed it, Warren Buffett and is run according to his investment principles. Yet the ‘Sage of Omaha’ has nothing to do with the fund.
Rosemary Banyard explains how her freedom and flexibility at her trust inspires her to make the most of market volatility.
Exclusive interview: Neil Woodford explains why he remains confident his bet on the UK domestic economy will pay off.