Hundreds of thousands of people approaching retirement have put their plans on hold until April 6, a date that ushers in far-reaching pensions changes. Citing figures released by financial education initiative RedSTART, the Telegraph’s Katie Morley advises savers to prepare for the overhaul now and take action if there’s a big shortfall between what they’ll get and what they think they’ll need in retirement.
Category: News
Pensions: find out what you need to save each month
The Government has recently introduced an auto-enrolment system that automatically enrols all workers into a pension, under which the contribution rate will increase to 8%. However, Jonathan Letham, co-founder of financial education organisation RedSTART, argues savers aren’t putting enough away for retirement and that the 8% contribution is not enough for many to enjoy a decent retirement.
Rising star to superstar? FundCalibre’s managers to watch
Fund ratings agency FundCalibre has named five ‘rising star’ managers tipped to produce strong long-term investment returns, reports Investment Week. The managers already run funds that have been awarded a FundCalibre Elite Rating, the top award handed out to funds expected to perform well in the future. One of the five, Hugh Yarrow, runs the £235m Evenlode Income fund. Evenlode has outperformed peers over all time periods, returning 52% over three years versus the IA UK Equity Income sector average of 45%, and FundCalibre has gone as far as labelling the manager “a potential heir to Neil Woodford’s crown of income investing”.
Leicestershire to commit entire credit portfolio to direct lending
Direct lending has become more popular in recent years, as tighter regulation on banks has discouraged many from giving loans to certain sectors and opened up the space for institutional investors. Greg Fedorenko, associate at investment consultancy Redington, suggests pension schemes could find greater returns in direct lending than on the syndicated loan market.
Evenlode’s Peters: Is finance more difficult than physics?
Ben Peters, investment director at Evenlode, discusses his early beginnings in physics and how he applies this to the management of the Evenlode investment fund.
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The most popular UK income fund with managers – and it’s not run by Woodford or Barnett
The £7bn Artemis income fund has retained its crown as the most popular UK equity income fund with multi-managers, according to the latest FE Trustnet study. According to the study, the Artemis fund, which is co-managed by Adrian Gosden and FE Alpha Manager Adrian Frost and is now the largest portfolio in the IA UK Equity Income sector, is a top 10 holding with 36 IA funds.
Group Ratings: Euro corporate bond stars
There has been much uncertainty in Europe of late. While market sentiment improved at the end of the year, with positive US economic data bolstering investor confidence, prospects in Europe remained less certain with the slide into deflation in the eurozone a leading concern. CityWire highlights the funds that have fared best, including the T Rowe Euro Corporate Bond fund, managed by David Stanley.
Great Expectations: UK pensions must avoid over-optimistic assumptions
Student loans: the real cost could be £40,000 more than official estimates
A damning report has warned that the Government has severely underestimated the cost of funding a university degree with a student loan, the Telegraph reports. The analysis, compiled by RedSTART – an education arm of the consultancy firm Redington – claims the Government’s mathematicians have used “outdated” sums to calculate the size of repayments graduates will make on student loans taken out after 2012.
Linehan backs M&A to drive US equities in 2015-02-19
T Rowe Price’s John Linehan has backed merger and acquisition activity to become a prominent theme driving the US market in 2015. The manager of the T Rowe Price US Large Cap Value Equity Fund said the backdrop of current equity valuations, healthy corporate balance sheets and buoyant cash reserves lent itself to an increase in activity in the coming year.