Money managers under the microscope
from Reuters Money:
Those of you who diligently invest from reclining chairs with passive portfolios, rejoice! You had another good year without doing much of anything.
Not only did you get more out of life by not watching business TV channels, stock prices on your smartphone or fretting over the latest blip on Wall Street, you built up your retirement portfolio without much effort.
Those of you who thought you were smart and safe by piling all of your money into bond funds, turn off your TV. There's a better way.
One of the best approaches last year -- as in most years -- was to cover the major asset classes in one portfolio. This doesn't involve guessing whether stocks, bonds or real estate will be hot. You place almost equal amounts of money in every major category.
from Reuters Money:
The best investments often don't have the highest returns. I know this is heresy to most, yet mass behavior can be a siren song.
About this time every year, we gaze intently at our portfolios, hoping against hope that we did something right. Sometimes we get lucky.
US passive giant Vanguard is planning to bring its target retirement date products to the UK market to target the growing defined contribution (DC) pensions business.
Taking to Reuters at the Fund Forum, Tom Rampulla, managing director of Vanguard UK, said that the firm was currently trying to structure these long term savings products for the UK market, and looking to add key funds to support the offerings.
from Global Investing:
Investment guru Burton Malkiel, author of A Random Walk Down Wall Street, has revealed at a briefing that Chinese equities form the largest part of his personal satellite portfolio, although the core remains in low-cost index funds.
Malkiel, in town to beat the drum for Vanguard's index funds, argued that China will be the biggest economy in the world in 20 years' time, but most investors are underweight the emerging giant. "I'm a real expert on China - I've been there five times," he joked, but made the serious point that most investors have a home bias.