Is it time to break up with your fund manager?

Fund Manager BreakupBy now you probably know that your duty to look after your investments does not end after the initial due diligence of selecting an investment manager. Manager selection is a crucial first step, but that is really only the beginning. You must establish a process to prudently monitor your investments with quantifiable criteria that will systematically generate a review of underperforming investments. Common reasons to replace an investment might include the investment manager retiring, the investment taking excessive risk, or the investment’s performance lagging the benchmark. However, sometimes after a thorough review of your investment it could make sense to retain it instead of replacing it. Let’s look at some of the reasons to not break up with or fire your investment manager. Continue reading

Q2 2016 Capital Markets Update

We experienced a very quiet, low-volatility market for the first two months and 3 weeks of the 2nd quarter.  Then the Brexit happened!

For most of the quarter, equity investors continued the trend of climbing the wall of worry.  The quarter saw concerns over the job market (only 38,000 jobs created in May[1]), no growth in corporate earnings (for the 4th consecutive quarter), uncertainty over future Federal Reserve rate hikes, and anticipation of the British referendum over whether to stay in the European Union.  But in the midst of all these concerns equity markets slowly climbed higher.  It was not until June 24, when the surprise result came out of Britain to leave the EU, that the markets received a jolt of volatility. Continue reading