In a new report, Prudential explained that currency fluctuations were dramatically affecting the retirement income of expat pensioners. Expats living in the eurozone have seen their income vary by almost 10% over the course of the last year.
We look at some of the top-rated funds according to the FE Crown Rating system that donÃ¢ÂÂt get the hype of their larger rivals despite having a strong track record of outperformance.
One way of getting better returns from your savings is to pick better funds, which is where the FE Crown Ratings can help. The beauty of a quant-based ranking system is that it cuts through the marketing to highlight funds that investors may have otherwise overlooked. Most investors are drawn to big funds thanks to the greater attention they receive in the press and the large amount they spend on advertising. There is also a strong psychological tendency to stick with the crowd. Here are four funds that have gathered less than Â£100m in assets despite the fact that all of them have an excellent track record. All have five FE Crowns, the highest ranking available. Premier Multi Asset Monthly Income This Â£62m portfolio has seen strong inflows this year as its reputation has started to grow: it is the fourth-best portfolio in its IMA Mixed Investment 20%-60% Shares sector over three years. Over that time period it has returned 32.14 per cent compared with a sector average of just 18.09 per cent. It is currently yielding a generous 4.15 per cent. It pays out its yield monthly, which should make it highly attractive at the current time. Performance of fund vs sector over 3yrsSource: FE Analytics The fund buys portfolios that are themselves less well-known and in some cases hard or impossible for retail investors to access. It currently has 6.6 per cent in alternatives, while the bond segment of the portfolio also includes some more niche names such as the TwentyFour Dynamic Bond fund, which buys RMBS in Europe. The first couple of years of the fundÃ¢ÂÂs life saw it perform roughly in line with its sector before it pulled away in 2012, returning 16.32 per cent, double the 8.35 per cent of the average fund. It has made 14.2 per cent so far this year while the sector has made just 8.81 per cent. The major drawback is the ongoing charges figure, which is high at 2.34 per cent. It is run by a team headed up by David Hambidge.Cavendish UK Balanced Income This Â£33m fund sits in the IMA UK Equity & Bond Income sector, which as a whole is largely overlooked. It not only has five FE Crowns but an FE Alpha Manager in Julian Lewis. Our data shows it is a top-quartile performer over three years with returns ofÂ 43.19 per cent. This is the second-best result in the 17-fund sector Ã¢ÂÂ the average fund has made 34.42 per cent. Performance of fund vs sector and benchmark over 3yrsSource: FE Analytics It has been doing well from a high weighting to financials, with Hargreaves Lansdown its second-biggest holding at 2.5 per cent of the portfolio. It also has 2.4 per cent in Standard Life, 2.1 per cent in Henderson and 2.1 per cent in Legal & General. Ongoing charges are 1.38 per cent and its yield currently stands at 4.3 per cent. The fund is also a member of the FE Select 100. TB Wise IncomeTony YarrowÃ¢ÂÂs fund was launched in October 2005. It had a rough patch during the financial crisis but has performed very well since then, logging top-quartile returns in 2011, 2012 and 2013. It is the seventh-best fund in the IMA Flexible sector over five years and the third-best over three. Over the latter period it has made 41.51 per cent against a sector average of 21.57 per cent. Performance of fund vs sector over 3yrsSource: FE Analytics It holds a mixture of direct equity and bonds, as well as funds, and aims to be a one-stop shop for income investors. The top holding is the Standard Life Property fund, which is worth 8.9 per cent of assets; the F&C UK REIT accounts for 7.5 per cent. Property in total makes up 21.8 per cent of the fund. It has a total of 28.3 per cent in directly held income shares and a further 7.2 per cent in equity income funds. It has only 10.3 per cent in fixed income. The fund has ongoing charges of 2.08 per cent. CIS Sustainable World This Â£97.8m portfolio, headed up by FE Alpha Manager Mike Fox, has an ethical remit, investing only in companies that meet the Co-operative Investments ethical investment policy. However, it is the performance that stands out. It is the second-best performer in the IMA Mixed Investment 40%-85% Shares sector over three years, having returned 43.78 per cent. The sector average is just 23.62 per cent. Performance of fund vs sector over 3yrsSource: FE Analytics The fundÃ¢ÂÂs top holding is Google, at 3.83 per cent, while Johnson & Johnson, Lloyds and Walt Disney also appear in the list. It has 7.7 per cent in cash and 15.5 per cent in fixed interest. Industrials, consumer services and healthcare are the three highest sector weights. The fund's yield is 1.4 per cent, but it is not a target. It has ongoing charges of just 0.79 per cent.
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The Northwestern Indiana Regional Planning Commission full board will vote on including the Illiana Expressway in its 2040 Comprehensive Regional Plan on Dec. 12. Unlike CMAP, NIRPC's Metropolitan Planning Organization and full board are one and the same. So no subsequent vote will be needed.
Posted by Interim Partners, Interim NHS management specialists.
Mark Carney has stated that interest rates will remain the same until unemployment numbers fall below 7%.Â It currently stands at 7.8% which, according to the BBC, means that 750,000 jobs will need to be created to reach this target. But where will these jobs come from?
We are still witnessing redundancies within the financial services sector â areas such as Commercial Banking and Insurance are still shedding quite significant numbers, albeit not at the rate of previous years.Â On the other hand we are seeing growth in other areas such as Conduct Risk and Anti-money laundering. Additionally, mortgage operations have reported recruitment growth in terms of sales and review teams. Other industry sectors including manufacturing also appear to be on the mend as employment within this market seems to be stabilising.
Are the numbers distorted anyway?Â The unemployment figure is based on the number of people claiming certain benefits; however there are a number of people in the UK who are unemployed but who do not seek benefits â technically they are still âunemployedâ. The number of people in the UK who are actually âunemployedâ (whatever their status) has been estimated as being nearly 11 million by some.Â This figure includes people between the ages of 16 and 64 who cannot work or who choose not to work for various reasons.
What are your views on where the UK can try to reduce its unemployment figures? If it is indeed the financial services sector that is mostly contributing to unemployment figures, does it have a responsibility to recruit too?
Always keen to hear your responses.
FE Trustnet reveals the funds that have made the most in the first three-quarters of 2013, in a list that features a number of surprises.
The best performer in the entire IMA universe since the start of the year is the tiny $6m Guinness Alternative Energy fund, managed by its namesake Edward Guinness. The Dublin-domiciled portfolio has picked up an impressive 81.16 per cent since 1 January, well ahead of the average fund in the IMA Global sector, which gained just 20.55 per cent. The fundÃ¢ÂÂs benchmark, the Wilderhill New Energy Global Innovation Index, made 55.56 per cent over this period. Year-to-date performance of fund vs sector and indexSource: FE Analytics However, early investors in the energy fund would have had to have waited a long time to see its sector and style come into favour. Guinness Alternative Energy has lost money over the past three calendar years, including an eye-watering 41.45 per cent in the down markets of 2011. As a result of several difficult years, it is still down nearly 7 per cent since launch. The average fund in the IMA Global sector has gained 27.57 per cent over this period. Another sector that was battered and bruised but has come back in to favour this year is Japan, with Legg Mason Japan Equity delivering the second-highest return of any IMA fund so far in 2013, at 81.11 per cent. Invesco Perpetual Japanese Smaller Companies was the third best-performing fund. Investors in the Legg Mason fund would have been biting their nails as the portfolio bled capital in 2006, 2007, 2008 and 2009. In 2006 alone the fund lost more than half its value. However, investors who stuck with it over the last decade would have made 56.44 per cent, broadly in line with the Tokyo Topix index, but more than 10 percentage points ahead of the IMA Japan sector. 20 best-performing funds in 2013Source: FE Analytics In 2012, the best-performing fund in the IMA universe in terms of total return was Standard Life UK Equity Unconstrained, managed by Ed Legget. The fund has continued to deliver strong returns so far this year, picking up 41.21 per cent, making it the 19th-best performer in 2013. However, a number of funds that topped the tables last year have suffered underperformance thus far in 2013. It is difficult to buy an asset when the news around it is negative and even more difficult to hold on to when it haemorrhages cash, yet the fact that some of this year's leaders were previously in dire straits underlines the importance to investors of holding their nerve. It is not just the Guinness and Legg Mason funds that have experienced a turnaround this year. The Baillie Gifford Japanese Smaller Companies fund suffered heavy losses in both 2006 and 2007, but has surged ahead 51.98 per cent. The R&M UK Equity Long Term Recovery fund lost nearly 20 per cent in 2011, but is now up 118.4 per cent since launch in July 2008. And who can forget that FE Alpha Manager Neil Woodford was on the wrong end of the market in the late 1990s? He had no exposure to the tech sector in the run-up to the dotcom bubble because he felt it was a crash waiting to happen. The manager trailed his peers to the point that rumours he would lose his job surfaced, yet his conviction was proved correct. As Woodford celebrates more than 25 years on his flagship Invesco Perpetual High Income fund, the core UK equity income portfolio is up more than 1,600 per cent since the start of FE data in December 1989, nearly triple the returns of the IMA UK Equity Income sector. Performance of fund vs sector since 1989Source: FE Analytics Unsurprisingly, a number of UK Smaller Companies funds made the list of the top-20 performers so far this year Ã¢ÂÂ the five crown-rated Fidelity UK Smaller Companies fund, managed by FE Alpha Manager Alex Wright and the four crown-rated Unicorn UK Smaller Companies fund, run by FE Alpha Manager John McClure. Small caps have wildly outperformed the FTSE All Share and FTSE 100 over the last 12 months, picking up 37.23 per cent compared with 22.2 per cent from the All Share and 20.14 per cent from the blue chip FTSE 100 index. This trend of outperformance is nothing new; however, the rise of small and mid caps has been much more pronounced since mid-2012. Unfortunately, WrightÃ¢ÂÂs leading Fidelity UK Smaller Companies fund was closed to new money earlier this year, though McClureÃ¢ÂÂs small cap portfolio remains open. The Unicorn fund requires a minimum initial investment of Â£2,500 and has ongoing charges of 1.61 per cent.
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