Review of Scottish Mortgage Investment Trust
Scottish Mortgage Investment Trust is a very successful, very large active equity fund (£7.6 billion in October 2018). Its returns have been very good for the last decade and on the back of its performance it has single-handedly made investment trusts sexy again. In this article we look at how the fund is run, the risks you take by investing in the fund and we consider whether this is a good time to buy the fund.
Vanguard vs IWeb: Which Is The Cheapest ISA Platform?
In this article we compare the costs of two of the cheapest ISA platforms: Vanguard and IWeb. IWeb's annual fee is zero, but it has a setup fee and charges for trades whereas Vanguard charges 0.15% of the amount you invest capped at £375 per year, has no setup fee and you can trade for free. It turns out that the cheapest platform depends on how much you invest and how much you trade.
How To Calculate Correlation
This spreadsheet contains eleven years of daily price data for four funds (FFR Global Real Estate, Gold, IEF 7y-10y US[...]
Small Cap Versus Large Cap: Which Is Best?
Stock prices of small companies outperform large companies over the long-term. However, this is not true in all environments, and buying small company stocks comes with its own risks and costs.
Active vs Passive Performance: S&P’s Andrew Innes On His Index vs Active Report
Here's my interview with Andrew Innes of S&P Dow Jones Indices, author of the European S&P Index Versus Active report which tracks thousands of fund managers over a very long period of time, often up to a decade, to see whether they managed to do what they're paid to do which is to beat their benchmark.
Modelling the Economic Impact of Brexit
Here's the transcript of an interview with Amit Kara who is head of UK macroeconomic forecasting at the National Institute for Economic and Social Research. The reason why this is interesting is that it gives you an insight into why we build models, as well as insights into the possible impact of Brexit on the UK economy.
How To Build A Two Stock Portfolio
How many funds do you need in your portfolio? A fairly radical view is that you need just two: a share fund and a bond fund. What's wonderful about that is that it's so simple. Asset allocation simply becomes a matter of how much money you put into fund A and into fund B but if you do it in sterling there are some considerations that you have to take into account and a lot of the proponents of the two fund model are US dollar based investors. So let's see how we could do that in a bit more detail.
Review of Smithson Investment Trust
Fundsmith is about to launch a new fund called Smithson. This is exciting, because Fundsmith is such a successful asset manager. It's global equity fund has beaten its index consistently over a very long period of time. So what is it that this new fund is setting out to achieve how much will it cost and how likely is it to succeed?
How To Transfer A Stocks & Shares ISA
An Individual Savings Account (ISA) is like a tax invisibility cloak. You don't pay tax on any investments held in the ISA. Lots of companies offer ISAs, but if you are not happy with your existing provider you can switch to another one. In this article, we show how to work out the cheapest way to do the transfer without losing your ISA allowance.
How to Invest During Brexit
UK investors can't ignore Brexit. Brexit will be one of the most important drivers of return in your portfolio over the next few years, so it is worth getting your portfolio prepared. Here we provide an approach and a spreadsheet that helps you decide which outcomes are most likely and position your portfolio in line with your beliefs.
What Is The Ex-Dividend Date?
Many stocks and funds pay you a regular cash dividend payment. In order to receive this payment you must be a registered owner of the stock before a specific date: this is the ex-dividend date. If you buy the stock after this date you won't get paid a dividend until the next dividend payment. For some stocks that could be up to a year later.
Is Gold a Good Investment?
Gold has been synonymous with wealth for millennia, but is it a good investment? We find that contrary to received wisdom gold is a poor diversifier and offers little protection against inflation. The historical drivers of gold are pointing at a period of poor performance ahead. Gold generates no income and consequently has no fair price and so its price is driven by speculation. For these reasons gold is difficult to justify as part of a portfolio.
Lump Sum Investing or Drip Feed Investing: Which is Best?
If you have a cash lump sum to invest is it best to drip feed that money into your investments or to invest it all in one go? The best strategy depends on something nobody knows: whether markets are going to rise or fall.
Which is the Best UK Active Fund: Lindsell Train, Fundsmith or Vanguard Value?
How do you choose market-beating active funds that will outperform for decades to come? While there are some guidelines you can follow the surprising truth is that this is ultimately a matter of faith. Here we compare three UK active funds which we believe have the potential to outperform long-term: Fundsmith Global Equity, Lindsell Train Global Equity and the Vanguard Global Value Factor.
Review of Lindsell Train Global Equity Fund
Lindsell Train Global Equity is an extremely popular investment fund that is drawing in capital thanks to its strong performance. Here we delve into its approach to investment, the risks it is taking to generate those strong returns and whether that outperformance can continue.
How Many ISAs Can I Have?
You can split your £20,000 ISA allowance amongst one each of the four ISA types in this tax year: a Cash ISA, Stocks & Shares ISA, an Innovative Finance ISA & a Lifetime ISA. A household creates even more opportunities for tax-free saving for you and your family.
What Is An Investment Platform?
What is an investment platform? How much does it cost? What services does it provide for that fee? Mark Polson, the founder of Lang Cat, provides answers to all these questions.
Review of Vanguard Factor Funds
Can you box Warren Buffet's investment style? Maybe not, but you can buy four cheap, active factor funds from Vanguard that buy stocks which are fundamentally cheap (Value), have prices rising more than other stocks (Momentum), have shares that change hands infrequently (Liquidity) or have small price fluctuations (Minimum Volatility). Research shows that these factors have beaten the wider market over the long-term.
What Should You Do In a Market Crash?
During a market crash you will be bombarded with tales of fear and woe. But for a long-term investor these market setbacks are simply bumps on the road. Find out how to beat your cognitive biases and maintain your investment goals and discipline through tough times...
Review of Vanguard Target Retirement Funds
Vanguard Target Retirement funds are inexpensive, diversified and designed to give you a good, but not guaranteed, investment outcome by some fixed date in the future. They do this by starting with a high equity allocation then dialling down risk by moving more money into bonds as the fund approaches its target date.
Has Neil Woodford Lost His Mojo?
Neil Woodford is a fund management superstar but his performance has slipped after some disastrous stock picks in 2017. We look at his investment style and ask: has he lost his mojo?