Funds & ETFs 

Profiting from passive moves, better value opportunities and the right places for attractive yields

Exchange traded funds (ETFs) may be passive, but if you actively to trade and manage your allocations to them you could generate better returns. Deputy personal finance editor Taha Lokhandwala looks at which markets are better for passive funds and which ones are better for active funds, as well as how you could profit from short-term trading strategies. He also explains why this is not a good approach for many investors due to its risks, and sets out some alternative strategies that could also deliver good returns.

OTHER STORIES IN THIS ISSUE

This week's tip highlights a fund which seeks better value opportunities, an increasingly necessary pursuit in view of the lack of bargains across global markets. And its approach has paid off: the fund's return over ten years is almost double that of its peer group average. So if you want the potential for value and strong long term returns, have a look at our tip.

If you're hunting value, also listen to our audio interview with British Empire Trust (BTEM) manager Joe Bauernfreund who explains how to avoid value traps and why he invests in family-wealth companies.

 

Invesco Perpetual Enhanced Income's (IPE) managers Paul Read and Paul Causer say they have not resigned because of fees, in their first public statement since handing in their notice following a dispute with the trust's board. Taha Lokhandwala looks at their reasons for resigning, why the trust's board says it is acting in the interests of smaller shareholders and which side is likely to win a forthcoming vote to oust the trust's chairman.

 

Monetary policy has pushed bond prices up and yields down, while rising interest rates could lead investors in these types of assets to lose money. But despite what seems like a very poor outlook, if you invest in the right areas of the debt market you can find good value and attractive yields. Personal finance writer Emma Agyemang sets out the areas of the bond market that offer good opportunities and highlights the best funds with which to exploit them - as well as the risks that they incur. 

 

In our latest podcast the IC team consider whether sentiment on UK stocks is too negative meaning that theycould offer value. Adrian Lowcock, investment director at Architas, explains how asset allocation can play an important part in boosting investment returns. And they weigh up the merits of a new fund that invests in alternative assets and is targeting a yield of 5 per cent.

Our podcast is available across different distribution channels to allow you to access it in the most convenient way. Find us on Acast, Stitcher and iTunes.

 

This week's Portfolio Clinic features a couple whose goals include supplementing their retirement income and leaving money to their children, while having less involvement in the management of their investments. Our experts suggest some ways to make their portfolio easier to manage, and explain why if they don't plan ahead they could rack up a massive tax bill.  

 

Do you have a personal finance problem? Or want to know more about something in this week's personal finance pages? If so let us know by getting in touch with leonora.walters@ft.com, taha.lokhandwala@ft.com or emma.agyemang@ft.com.

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