| | Brits aiming to stash not splash the cash, post-lockdown
The effects of the coronavirus continue to be felt across the financial world with news this week from Broadridge Financial Solutions that assets under management in model portfolios dropped to USD3 trillion at the end of Q1 2020, down from a record high of USD3.5 trillion in Q4 2019 as a result of the wider selloff related to Covid-19. Adviser-led model portfolios (53 per cent), grabbed the lion’s share of assets followed by home-office model portfolios (30 per cent) and third-party model portfolios (17 per cent), while ETF model portfolios now account for 43 per cent of all assets, up from 36 per cent in Q1 2018.
Staying with the theme, Franklin Templeton announced that 12 of its outcome model portfolios are now available through the Envestnet platform. The suite includes five strategies that prioritise generating income, four that seek a level of capital appreciation, two aimed at protecting assets from meaningful loss, as well as a strategy geared toward protecting assets in a rising interest rate environment.
New research from eToro meanwhile, suggests that while lockdown has restricted personal freedoms, it has also boosted the personal finances of some Britons. The company says that many workers have been able to make substantial savings on travel and other daily expenses while working from home, totalling a combined GBP75.5 billion in Q2 2020. And this new-found savings habit could be here to stay with 42 per cent saying they intend to continue stashing rather than splashing their cash after lockdown is lifted.
And its active not passive funds that are attracting the majority of new UK savings, according to the Investment Association, with active funds seeing net sales of GBP3.5 billion May, more than double the net retail sales of tracker funds, which saw GBP1.3 billion in inflows.
Finally we, also have news of how niche investments including rare coins, whisky and art are gaining traction with those looking for an alternative to traditional opportunities. Perhaps the most unorthodox of all though is Lego, which according to Google AdWords, saw 260 online searches as an alternative investment in May alone, presumably by those pursuing a buy and build strategy…
Wealth Adviser
| | | | | | | | | | | | | | | | Active funds lead as retail sales near GBP5bn | | Thu | 2 Jul 2020, 15:02 | | UK savers put GBP4.7 billion into retail funds in May 2020 building on the positive fund flows in April, according to latest figures published today by the Investment Association (IA). |
| | | | | | | | | | | | | | | | Global ETF launches 15.06-02.07.20 | | Thu | 2 Jul 2020, 15:02 | | This week’s new launches include a fund that provides investors with access to one of the few sectors to have benefited from the coronavirus pandemic, the Direxion Work From Home ETF, which is based on a Solactive index, as are Hamilton ETFs’ latest offerings covering the Australian and Canadian banking sectors. Elsewhere, Toews Corporation launched a family of Agility Shares ETFs, while Pacer ETFs added four new funds to its offering… |
| | | | | | | | | | | The spectre of further market volatility haunts investors as they look for income After the mother of all market selloffs in March and the mother of all market rebounds in April, it is long overdue to survey the debris that some investors might mistake for a well-constructed portfolio. As an income investor one should really ‘beware the Ides of March’ and in this article I will review four sources of income and the risks that come with that territory. |
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