The FCA is conducting an investigation into potential conflicts of interest around external Authorised Corporate Directors’ governance and oversight of retail investment funds and is looking at 11 firms in particular, Money Marketing reports.
It certainly looks like ACDs will be under much more pressure to demonstrate their independence in future. More fund managers sacked perhaps?
FTAdviser considers why investors are still buying government bonds despite very low yields. Newton’s Paul Brain is among those quoted and neatly sums things up.
He says: “The bond buying programmes of governments aren’t going away, even if they are tapered back, and having a constant buyer in the market should help investors. And of course, in the event there is a worse economic downturn, the government bonds would likely rise in price and offer protection.”
Scottish Mortgage Investment Trust has diversified away from Facebook and Tesla and reduced its exposure to Amazon in the latter case not for diversification reasons but because its market cap is too high.
It does feel like there has not been enough debate about the overconcentration in tech stocks.
Chris Jelf explains his decision to launch Integrity 365 in Professional Adviser. It has eight IFA firms working with it but plans to increase this to 12 soon and 24 long term. He sold Jelf to Marsh & McLennan in 2015.
Michael Hasenstab the CIO of Templeton Global Macro has highlighted the ‘tragic’ divergence of ESG capabilities in the emerging world, with those operating with less skilled governance being the hardest hit.
He says: “Countries that were less prepared for a health crisis due to weaker health care systems and less developed infrastructure, and/or less prepared for an economic crisis due to fiscal imbalances, high levels of debt and external dependencies, have suffered greater damage to lives and livelihoods.
‘By contrast, countries that were in stronger fundamental shape before the crisis, with stronger institutions, lower levels of debt and more diversified economies, have generally fared better. As an investor, it remains crucial to be selective – a number of sectors and sovereigns remain highly vulnerable to a market correction, in our view.”
Interesting to see ESG deployed to make this argument.
With England locked down and restrictions in the other home nations, the Bank of England expands QE by £150m while maintaining ultra low interest rates at 0.1%.
The National Audit Office has warned of significant Brexit disruption – deal or no deal – in January as Investment Week’s Brexit blog notes.
Joe Biden is the President Elect. Money Marketing asks what next for investors? Perhaps a little early to tell?