Salient to Investors: From January 1, 2013, UK advisers will be banned from accepting commissions from asset managers and instead charge clearly delineated fees. In 2009, the Review of Financial Studies said the cost of investing in British funds is higher than anywhere in the developed world aside from Scandinavia and Canada – and average 2.21 percent of
READ MORE... →Salient to Investors: Victoria Mio at Robeco Hong Kong said China’s leadership change removes the biggest overhang for the nation’s equities as the new government is determined to carry out reforms. Mio said implications on the economy are neutral near term as China is expected to maintain the current monetary and fiscal policies. Barclays
READ MORE... →Salient to Investors: Saumil Parikh at Pimco said equities will return an annualized 4 percent to 5.1 percent over the coming 5 to 10 years verus their historical rate of almost 10 percent as the economy grows at a slower pace due to more retirees than workers and productivity decline due to less
READ MORE... →Salient to Investors: European companies most dependent on revenue from Spain, Italy, Greece and Portugal are rising in the stock market at the fastest pace in five years, providing chances for short sellers after two earlier rallies fizzled. Bears cite Spanish unemployment surging to a record, austerity measures pushing Italy into
READ MORE... →Salient to Investors: Money managers said fears that the US economy will slow as Obama and Congress fail to avert the fiscal cliff are overblown. Volatility across markets has declined, signaling investors are less worried about the economic outlook. Bettina Mueller at Deutsche Bank is astonished the market is turning so quickly, and expects
READ MORE... →Salient to Investors: Brazilian equities saw the biggest outflows in the past two months since Lehman’s collapse in 2008. EPFR Global said emerging-market equity funds attracted $10 billion during the same period, while Mexican stock funds had inflows of $179 million. Brazil’s domestic stock funds had inflows of $2.5 billion so far in 2012 versus
READ MORE... →Salient to Investors: Gilles Sitbon at Sycomore Asset Mgmt said people are waiting for one thing that could make the market go down – if nothing happens, then you can get a grind higher. Money managers said fears the economy will slow as Obama and Congress fail to avoid the fiscal cliff next
READ MORE... →Salient to Investors: 71 percent of 452 companies so far reporting exceeded analysts’ estimates, 60 percent missed on revenue. Terry L. Morris at National Penn Investors Trust said the lack of sales growth is a surprise – companies have been beating on earnings because of cost cutting, but that can’t go on forever. Read the full
READ MORE... →Salient to Investors: Pat Dorsey at Sanibel Captiva Investment Advisers said Greece leaving the euro would not be a big deal to a portfolio of largely multinational large caps. Dorsey said the uncertainty and worry is a big investment positive – its dangerous to invest is when everybody is certain and confident about the future: a la Yahoo! in
READ MORE... →Salient to Investors: The S&P 500 remains up more than 9% since January 1, 2012, and up 12% in the last 12 months. Corporate profits and revenue are in a fundamental contraction so it’s natural for the market to be held back. Any sitting president has very little influence on the
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