Friday 1st July 2016
NEWS TICKER: Why are the markets up today? Augustin Eden at Accendo Markets has an explanation. He says that “Post-Brexit is years away and the politicians are cleverly stalling the process of, er, starting the process by resigning and stuff like that. You could think of the Brexit process a crudely constructed economic Rube Goldberg machine. It could all go smoothly but it’s more likely that something will go the wrong way at some point. Perhaps a whole section will collapse and have to be re-built; a projectile will miss its target and have to be re-aligned. But until the machine is set going - until Article 50 is invoked - all is stable. Thus we see financials’ shares outperforming even though Moody’s stayed true to its word and carried through with its threat to blanket bomb the sector with downgrades. Late to the party as usual? But let’s not assume things really are improving from here on. Talk of waning volumes indicating a bottom for the recent sell off neglect to take account of one fact: declines can happen on both high and low volumes, but rallies can only happen on the former”. Now you know - Moira Gorman, client director, LGPS at Columbia Threadneedle Investments today in a client note says that UK referendum result, “puts pressure on asset valuations, and will worsen funding ratios given the contraction in gilt yields. However, funds in England and Wales had their triennial valuation in March 2016 so will be able to take their time in considering they may wish to respond in the short to medium term. Possibly of equal importance to them could be the political uncertainty and the potential impact on the timetable and objectives for pooling given the personalities who may lead the government following Prime Minister Cameron’s departure.” --

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Threadneedle discloses active share to improve transparency for investors

Monday, 02 February 2015
Threadneedle discloses active share to improve transparency for investors From January 2015 Threadneedle will report the active share of its equity funds, having announced its intention to do so late last year.

From January 2015 Threadneedle will report the active share of its equity funds, having announced its intention to do so late last year.

In a move to enhance transparency and disclosure to clients, Threadneedle’s latest professional investor factsheets, to be published this week, include each fund’s active share, a measure of how much the fund’s holdings deviate from its underlying benchmark. A portfolio with no holdings in common with its benchmark would have an active share of 100%.

Campbell Fleming, chief executive of Threadneedle Investments, explains the move “is about transparency and accountability. As managers we have a duty to demonstrate the value we deliver by providing information that enables investors to evaluate, monitor and assess fund manager performance. Used in conjunction with other data, active share is another measure for investors to assess whether they are getting what they expect from a manager."

Threadneedle will report the active share on over 30 of its equity funds as at 31 December 2014. The majority of these show an active share above 70%.  For private investors, the active share of available funds will be added to Threadneedle’s website along with investor information to support the use of this metric, as it is a relatively new measure for UK investors.

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