FTSE tech index performance eclipses FTSE 100 over last 12 months

Charles Incledon, Client Director quoted in Property Funds World, 18th February 2021

The US listed tech sector contains some of the biggest winners from the pandemic including tech giants Amazon, Apple, Netflix and DocuSign, the online signature platform, which has seen its share price more than treble in 12 months. However, Bowmore Asset Management says that some US tech stocks are now suffering from overstretched valuations.

Bowmore also points out that many listed UK tech companies have been acquired in recent years depriving the UK index of that boost to its performance. Takeovers of leading UK tech businesses include the acquisition of chip designer Arm and Inmarsat, the satellite telecoms provider.

Read more: https://bit.ly/3qxWspT

FTSE tech index strongly outperforms FTSE 100 over last 12 months

Charles Incledon, Client Director quoted in Wealth DFM Magazine, 17th February 2021

The London Stock Exchange’s technology index, the FTSE techMARK 100, has strongly outperformed the FTSE100 over the last 12 months, rising by 7% whilst the FTSE 100 has fallen 12%.

The research highlights the outperformance of technology companies during the coronavirus pandemic. The repeated lockdowns and resulting shift in consumer habits and behaviour have benefitted many tech businesses, resulting in some share prices surging.

Read more: https://bit.ly/2ZpxnS3

Active fund managers outperforming passive funds as Covid reverses fortunes

Charles Incledon, Client Director quoted in Wealth Adviser, 9th February 2021

“2020 was not the year to rely solely on passive funds. Not all active fund managers can beat the market, but the best active managers continually demonstrate that they can. It’s vitally important to have those funds in your portfolio when markets are falling, as much of the outperformance tends to come from downside protection”.

Read more: https://bit.ly/2OjCYXE

Are active funds back in fashion? Sales broke records at the end of a volatile 2020 as fund managers beat trackers

Charles Incledon, Client Director quoted in The Daily Mail, 9th February 2021

“Times of turbulence are when conviction trades really matter. The pandemic has created a situation where there are significant winners and significant losers.

Tracking an entire market in this type of situation means you will benefit from the winners but will also suffer as a result of the losers. Therefore, now more than ever, being selective is vital.”

Read more: http://dailym.ai/3p4M4Ek

Active fund managers outperforming passive funds as COVID reverses their fortunes

Charles Incledon, Client Director quoted in IFA Magazine, 8th February 2021

“The value of conviction applies to wealth managers as well as fund managers. We have outperformed our benchmarks and our peer group by making selective trades as a result of well-informed asset allocation calls.  Telling our clients to sit tight whilst we do nothing was not an option for us when a seismic shift in economic trends and conditions was occurring. They have thanked us for that now”.

Read more: https://bit.ly/3d5CHlN

Pension Goalposts have moved again

The Spring Budget in February 2020 was rather overshadowed by the start of the Covid-19 pandemic, but did include a number of changes to pension contribution rules, which might have a real impact on you.

If your income is over £200,000 but less than £240,000 then, good news, as the Chancellor has extended the boundary on Tapered Annual Allowance (TAA).  You will be able to increase your allowable pension contribution for the 2020/21 tax from £10,000 back to the full £40,000!

This is also great news from an income tax perspective as you will of course be able to claim tax relief at your highest marginal rate, making pension contributions still one of the most tax-efficient ways of saving.

Active funds outperformed passives in H2 2020

Charles Incledon, Client Director quoted in Investment Week, 8th February 2021

Bowmore Asset Management research shows that the outperformance of tech stocks in the UK has been less pronounced than in the United States, where the NASDAQ 100 technology index has risen 42% vs 18% for the S&P 500. US tech stocks have therefore outperformed their broader domestic market by 24% vs UK tech outperforming the wider UK market by 18%.

The US listed tech sector contains some of the biggest winners from the pandemic including tech giants Amazon, Apple, Netflix and DocuSign, the online signature platform, which has seen its share price more than treble in 12 months. However, Bowmore Asset Management says that some US tech stocks are now suffering from overstretched valuations.

Ready more: https://bit.ly/3pUvIiZ

Investors in the leading banks have endured a hair-raising year, but should you back them now they CAN pay dividends?

Charles Incledon, Client Director quoted in Mail on Sunday, 20th December 2020

“The UK stock market is still relatively undervalued, and banks are a clear illustration of this.”

“For those that believe the UK economy will experience a cyclical recovery, UK bank shares will be an attractive proposition.”

“However, among other things, investors need to take account of the prospect of “lower for longer” interest rates as well as the quality of banks loans, rather than just looking at the discount.”

Read more: http://dailym.ai/37CkvNh

FCA warns retail customers that cash could be invested for higher returns

Mark Incledon, Group CEO quoted in Wealth Adviser, 4th December 2020

“There’s a strong case that cash savings products should carry a warning about how their real value declines due to inflation.”

“More than GBP40 billion was put into cash ISAs last year alone and this is a good illustration of the problem. The public need to understand that due to inflation, they are losing money in real terms.”

Read more: https://bit.ly/36CKd3O