Funds & ETFs 

New fund rules and a Smithson analysis

Owners of open-ended commercial property funds may remember the turmoil after the EU referendum vote in June 2016, when investors instigated a run on funds, who then substantially marked down the value of their investments, before eventually suspending trading and trapping remaining investors' capital. The FCA, the financial services regulator, certainly does.

This week, the body proposed new rules on how funds manage a similar situation in future, which is handy should there be any cliff-edge moments that create uncertainty and undermine the UK's property market, around the corner. The FCA is suggesting changing the way funds suspend trading and how quickly they do so, all generally with investors' benefit in mind. Emma Agyemang has all the details in this week's Funds News.


Terry Smith's imaginatively named company, Fundsmith, is ready to launch its new global smaller companies investment trust, mimicking the successful strategy of Fundsmith Equity (GB00B41YBW71). It looks set to be a popular trust IPO, and in this week's Funds Feature we take a deeper look at the trust, analysing the outlook for its favoured stocks and any pitfalls investors should be aware of.

Healthcare and bio-technology stocks have had a volatile ride this decade. It was a darling sector in the first half, up until uncertainty over political interference in drug pricing took the shine off. It seems such threats are of the past, and the sector has a clean bit of health. This week's Big Theme takes a look at the outlook, how it fits into an equity portfolio and the best funds to access it.

In this week's Portfolio Clinic, our reader seems to be in a secure financial situation but is unsure over what to do with his investment portfolio. Should he go for capital growth? Should he supplement his pension income? Our experts provide some help on the best way to figure out what to do, and what the portfolio needs to achieve it.

The latest Fund Tip takes a look at an opportunity in US small caps whose rise continues unabated and is more exposed to the domestic economy in a country where unemployment is at a 50-year low. We profile a fund known for picking winners while being mindful of the extra volatility that traditional accompanies small cap investing.

In the latest Personal Finance Show, the team are joined by Merchants Trust (MRCH) manager Simon Gergel to talk about recent outflows from the UK stock market and the opportunities left behind. There's also a chat about a well-known bond manager retiring, and how to plan your own retirement.

As ever, our podcast is available across different distribution channels to allow you to access it in the most convenient way. Find us on Soundcloud, Acast, Stitcher and iTunes, where you can rate and review the show.


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