I present below some data comparing investment segments to which most investors would think about allocating a moderate slug of their diversified portfolios. The percentages are capital returns on the index with income re-invested (Source: MSCI)
Funds
Midweek Musings (late!) – using equity income funds in a downturn
I have written a couple of pieces to introduce this subject and I had promised to comment on some specific funds last week.
However, I thought that the possibility that there was a ‘bottom’ in the market at that time (an idea that is still holding good, but it is early days yet) was a more urgent idea for your attention a week ago, so the global dividend/equity income fund examples got deferred.
Midweek Musings – Vanguard’s sustainable offering vs. building an ethical portfolio using ETFs
The Vanguard Sustainable Life offering
Not long back, I mentioned that Vanguard had announced that they would be offering multi-asset ESG (environment, social, governance) portfolios built using an actively managed approach, not something one would have expected, although I was aware that they were being criticised for the lack of ESG filtering of their main best sellers.
I initially and incorrecty assumed from the press release information that the products would be managed collections of ETFs (exchange traded index tracking shares), not direct holdings in individual businesses. That is the way the Vanguard Lifestrategy funds work.
I have now read a little more and the following may be of interest to readers who have ESG priorities when making investment calls. I have already written that there is indisputable evidence that more money is flowing into ESG filtered funds than the rest, and so all investors ought to take account of the obvious boost to the momentum factor.
Midweek Musings – not exactly in the vanguard
Having no doubt realised that there is a head of steam behind the sustainability investing ‘fad’ (I jest!), Vanguard have at last reacted with a new product launch.
The problem with their otherwsie well thought out low-cost Lifestrategy funds is that they are built using passive funds that track the main global market indices, so are not in any way subject to ESG filtering. That has resulted is those funds being dumped from many an IFA preferred list and no doubt also avoided by ‘greener’ DIY investors.
Midweek musings – what about ETFs?
When you need focus – should it be an ETF?
When undertaking some research into Agritech investing a few weeks back, I concluded that for the moment the only way a retail investor could make a highly focused investment in that theme was by purchasing an ETF (Exchange Traded Fund).
Midweek Musings – manager style research concluded
In my October Watching Brief post I introduced a Digging Deeper topic initiated by readers who wanted some pointers on identifying manager style.
You may find it useful to read the introductory comments when I suggested starting with the house style. In the example I chose, which was a real request to me for comment on a fund, I have been looking at the Baillie Gifford Income Growth fund.
The managers in person – getting to know them
I think all readers will know that you can find out who in person manages a fund using resources like Trustnet and Morningstar and most of the time you will easily find a short biography, supplied by the employer and consistent in all research sources. This bio may be expanded on the fund provider’s own web site but that is in my experience unusual.
Base facts that I usually pay attention to are: