Currency RiskThe next scandal in UK Financial Services?
In a recent interview with Proactive Investors, Ben Raven talks about how the last 20 years have seen a fundamental shift away from advisers recommending UK-centric portfolios to a globally diversified approach.
Ben explains that this shift brings with it an increase in the average client’s exposure to overseas markets, and in turn the currency markets. Raven claims this exposure, and the impact it can have on a client’s portfolio returns and portfolio volatility, is often overlooked or at times even misunderstood. Raven subsequently discusses how a client’s portfolio can ultimately become mis-aligned with their attitude-to-risk profile, where the liability lies and the FCA’s stance on portfolio suitability.
“It is the responsibility of an Adviser to identify, understand and sufficiently explain all types of risk to a client prior to recommending an investment.”
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Over the last year the investment team have delivered strong risk-adjusted returns during a period of considerable uncertainty and market volatility.
The following is an abbreviated version of John Leiper’s article ‘Tide may be about to turn’ for Investment Week magazine. Follow the link and read his views on page 23.
Welcome to the Q2-2021 ‘Quarterly Perspectives’ publication.
Tavistock Wealth have come together with MSCI and LSE SU Green Finance Society to discuss Innovation in the ESG Eco System, alongside data analytics with MSCI.
Our Portfolio Manager for ESG, James Peel, was recently invited to provide his valuable insights into “Innovating Towards a Greener Future” as part of the London School of Economics Student’s Union Green Finance Society’s video conference: “Green Finance Summit 2021”.
In Nothing Is More Powerful Than An Idea Whose Time Has Come, published in November, we introduced the idea of a Great Rotation across US equity markets. As shown in the chart below, this rotation is playing out in textbook fashion with value stocks outperforming growth by about 20% since the end of last year.
The Fed’s dual mandate is price stability and maximum employment, but Jerome Powell has been unequivocal that it’s all about the latter.
Welcome to the Q1-2021 ‘Quarterly Perspectives’ publication.
This is the first blog since the holiday break. Whilst travel restrictions meant it wasn’t the holiday that had been planned, we adapted, and enjoyed the opportunity to spend some time together as a family and reflect on the last few months.
In its latest economic outlook, the OECD increased its expectations for global GDP.
Markets are ebullient, and they have every reason to be.
Following on from last week’s blog, the dramatic rotation from growth to value remains in place for now. Early signs of quick snapback into the prior channel have not yet materialised and instead the ratio has consolidated and even shown signs of moving.