Currency Risk

The 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.”

WATCH THE VIDEO BELOW:

Recent blogs

Tide may be about to turn

Tide may be about to turn

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.

read more
Green Finance Summit 2021

Green Finance Summit 2021

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”.

read more
The Great Rotation

The Great Rotation

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.

read more
Reflections

Reflections

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.

read more
Is the Bond Market Smarter than the Stock Market?

Is the Bond Market Smarter than the Stock Market?

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.

read more