Could financial services take centre stage in the British referendum on EU membership? One of the UK’s strongest sectors now seems to be questioning what EU membership has delivered. A tide of legislation since the financial crisis has hit UK asset managers and banks hard. Asset managers, in particular, are not sure why. A working […]
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Why are commodities over-represented in indices?
October 19, 2015 
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Do investors have an outdate view of commodities? Far from helping to diversify portfolios, or representing a tangible way to benefit from economic growth, commodities have become volatile financial plays. A misguided view of the nature of these assets has resulted in them being over-represented in indices. Indeed, many passive investors may be surprised to […]
Continue reading Why was Volkswagen in ESG and Sustainable Investing Funds?
October 6, 2015 2 Comments
Responsible investing must come clean about Volkswagen. Too many funds rated it highly on Environmental, Social and Governance (ESG). Collateral damage will run well beyond the car sector. Already, the scandal has tarnished the brands of Volkswagen and Germany, with their reputations for trust and engineering excellence. But it is not just about mis-selling cars. […]
Continue reading Illusory liquidity and other risks from misguided central bank policy
July 7, 2015 0 Comments
Does liquidity matter? Not, it seems, to regulators and central banks. Little thought is being given to the global systemic risk created by today’s liquidity illusion. In a world awash with money, trading is actually drying up, with little depth in many markets. Entering positions is easy, but the exit doors could prove surprisingly narrow. […]
Continue reading Smart beta investing and the seduction of labels
October 8, 2013 0 Comments
Smart beta is an impressive investment branding story. The name neatly encapsulates the idea of beating conventional indices consistently, but with little effort and much lower costs. Intellectually seductive, it conveys the concept of market exposure that avoids the costs and behavioural failures of active managers. And simultaneously it gives the impression of an edge […]
Continue reading Emerging Economies problems reflect scarcity of US$
September 28, 2013 0 Comments
The crisis in emerging economies has moved off the front pages but not gone. The Summer rout was largely shrugged off by investors in the West; institutional investors rebalanced out of emerging markets, but currency markets took most of the pressure. A rebound in China and Brazil has convinced many the growth fears were misplaced. […]
Continue readingDealing with underperforming managers
April 3, 2013 0 Comments
From CFA Inside Investing. Clients and their advisers see investment managers at their best in new business presentations. Data can be carefully selected for a pitch, or in a brochure promoting a fund. And, usually, investors have a preference for the style they would like in their manager; value or growth, momentum or contrarian. It […]
Continue readingCFA UK’s Professionalism Conference on Friday April 19th : free event
March 27, 2013 0 Comments
I am participating in a panel discussion on stewardship at CFA UK’s Professionalism Conference on Friday April 19th. The conference is designed to provide practical guidance on building and maintaining an ethical and professional culture in investment management firms. The conference starts at 1pm and is being held at the Americas Square Conference Centre, London […]
Continue readingHow big should the financial sector be?
February 27, 2013 0 Comments
Excellent article by Arjun Jayadev at Triplecrisis.com on inefficiency in the financial sector. Thirty years of rising cost of financial intermediation as the US financial sector doubled its share of corporate profits. On Naked Capitalism… http://t.co/bzNmIgPe6O Arjun is an Assistant Professor of Economics at the University of Massachusetts, Boston.
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Behavioural Edge 
Will the UK Election result unnerve investors?
– Falls of 2 to 3% likely in UK domestic sectors like property, media, retail and challenger banks – FTSE 100 sectors with international earnings – pharma, oils, mining, exporters – should gain on the weaker Pound – Domestically-oriented sectors such as housebuilding and building products can benefit in coming months – A barely workable […]
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