The most popular UK income fund with the professionals – and it’s still not Woodford

Threadneedle

Richard Colwell’s £3.2bn Threadneedle UK Equity Income fund is the most popular UK equity income fund with multi-asset managers in the Investment Association universe, according to the latest FE Trustnet study, overtaking Artemis Income which sat at the top of the list last year. According to FE data, the Columbia Threadneedle fund sits at the top of the popularity tables with funds of funds managers as some 29 multi-asset portfolios count the three crown-rated vehicle as a top 10 holding – three more than Majedie UK Income, which sits in second place.

The soaring arm has got increasing number of followers

Despite a soaring AUM and an increasing number of followers, the now £8.3bn CF Woodford Equity Income fund is still only in third place as it features in 23 top 10s. However, that is an increase from last year when 18 funds held it in their list of biggest holdings.The last two years’ favourite, Artemis Income, has fallen to fourth spot as while 57 and 36 funds held it their top 10 in 2014 and 2015, respectively, that figure has fallen to just 22 this time around.

What is also noticeable is the absence of FE Alpha Manager Mark Barnett’s three UK equity income funds. In fact, just eight multi-asset funds hold Invesco Perpetual Income in their top 10, only five have Invesco Perpetual UK Strategic Income and Ingenious Global Growth is the only portfolio to have Invesco Perpetual High Income as a top 10 position, despite its £12.6bn size.Turning back to the top of the list, though, and Colwell (pictured) – who assumed sole responsibility of the portfolio from Leigh Harrison in October last year – has some notable backers.

Columbia ThreadNeedle manages the top 10 of 29 funds

Though six of those 29 funds that hold it in their top 10 are managed by Columbia Threadneedle, the likes of Bambos Hambi have sizable stakes in Threadneedle UK Equity Income within his Standard Life Investments MyFolio range and Tilney Bestinvest uses the fund in six of its OEICs.Interestingly, however, 33 funds held Threadneedle UK Equity Income in their top 10 this time last year.The Threadneedle fund has one of the best long-term track records in the IA UK Equity Income sector and since Colwell was named a manager on the portfolio in September 2010, it sits comfortably in the top quartile with gains of 77.73 per cent.

The fund has also made money and beaten the index in every year under Colwell’s stewardship. The fund is biased towards the larger end of the UK market, but Colwell aims to run a more contrarian portfolio than many of his peers in order to deliver an attractive starting yield.  For example, he holds the likes of GlaxoSmithKline, Marks & Spencer Group, Morrisons and Centrica in his top 10 and, as a result, Threadneedle UK Equity Income yields more than 4 per cent. To know more news on finance and trade, you can follow us at https://twitter.com/financetradingn

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Categories of Decision Making Algorithms in Trading

Decision Making Algorithms in Trading

Everyone knows that algorithmic trading is a giant now in the world market. But these algorithms will go various modulations in accordance with the market space and the trader requirements. But under a broader classification the algorithms can be classified into three as decision making algorithm, execution algorithm and the execution plus algorithm. Each will do there respective jobs as its names define. This article will be explaining the various categories that are found in the decision making algorithm. This will help the traders to better understand what algorithm to be selected for their trading requirements.

Types of Decision Making Algorithms

  1. Market making – this is nothing but selling and buying of the models at a very appropriate bid/offer spread. The trader will make money by constantly selling the models at the pre determined bid/offer spread and he will be creating the market.
  2. Index arbitrage – in this the traders will often get their profit from the discrepancies between the price of the constituent underlying and the index price.
  3. Pair trading – in this the model or the stock will usually get its price linked with the external sources usually. When there is a change in the price of the external factor, then the price of the stock will also get altered. It may sometimes end up in profit and sometimes in loss.
  4. Statistical arbitrage – in this case, the strategies will be little complex or even more complex sometimes according to the need of the trader. Again, just as the pair trading, there is a correlation required in this category also. But not just between two. The correlation will be between hundreds of models and the profit will be made based on the discrepancies between the stocks. But these discrepancies must be usually for a short span of time.
  5. Technical analysis – this is nothing but another form of statistical trading. This is more applied to the volume charts and the time series prices. The Bollinger bands and the moving averages are the typical tools that will be used to identify the trends and the patterns.
  6. Automated gaming – this is a strategy that will be looking at the market participants of other marketers and will observe their activities and then will try to anticipate their future activities. By this way the marketer who makes use of this will play games at the trade of other marketers and will earn good profit out of it.

High frequency trading – in this the orders will be checked at a really faster speed than any other strategies. Though the other categories can make use of HFTs, there are more specific HFTs available in the market for meeting the trader requirements. If you are planning to have your future in the trading platform, then it is better to go for a certification course in algorithmic trading, which will give you a great exposure towards the world trade and also an assured trading job in the future.

Oil prices weakened, US Crude defends premium over Brent

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Last Monday, the price of oil has experienced a fall, said the sources. The fall in the price was there all over the Christmas season. Also the newly gained premium has been defended by the US crude, added the sources. The new premium was gained over the Brent, which was traded internationally. The Brent trading at the end of the year has brought this change, said the report on last Monday. The fall in price will not be a permanent one and the oil price will raise again in the New Year, said the sources.

Oil price has faced a 23c fall

According to the report, a barrel of oil was sold at a price of $37.87 in the starting of December this year. The price has not faced any changes since. But at the end of the month, the oil barrel price has faced a change. The price of oil has fallen and the sources told that the price of oil has faced a fall of 23 cents at the end of the month. The report has also added that the Brent has also experienced a fall in the Oil price this year end.

According to the report, the fall in the price of oil barrel at the Brent was 16 cents, which is quite lesser than the West Texas Intermediate. The Brent was defended by the US crude, said the sources. The Brent has got a global benchmark in the last week. The price of per Oil barrel in Brent was $37.73, said the report. The marketers have told clearly that this change in the price will not last long and soon when the year 2016 starts, there will be so much of changes in the world economy, which will definitely reflect in the oil barrel price also.

Trading volumes were also down these holidays

The report has told that, over the holiday period, the trading volume has faced a fall too. It was only 5000 West Texas Intermediate Contracts that have been hand changed over trading session on this Monday. But by last December 7, the total contracts that have been changed over the hands are 8,953. The US market has faced a slight tightening this December said the sources. And that is the possible way that has made chances for the fall in the price of oil barrel.

“The biggest adjustment to prices comes from WTI gaining premium over the Brent. This was mainly followed by the US lifting its ban on crude oil exports,” Singapore-based Phillip Futures said on Monday. The brokerage added that it expected “a quiet week ahead” with the biggest expected news for energy markets likely coming from US inventory data to be published on Wednesday and Thursday. While the US slightly tightened, international markets remain over supplied as producers like Russia and the Organization of the Petroleum Exporting Countries (OPEC) produce between half a million and 2-million barrels of crude every day in excess of demand. To know more on this, please follow us at https://twitter.com/financetradingn

Hydro One IPO Has Closed Now

Hydro One IPO Has Closed Now

By broadening the ownership of the Hydro One Limited, Ontario is now generating a significant return. The initial public offering of Hydro one has now closed for one common share. The initial stake of the company will be starting its trade today in the Toronto Stock Exchange, in the symbol ‘H’. By making this trade in a well mannered and careful way, the government is expecting to raise a fund of $9 billion. Out of the money raised, $4 billion will be utilized for the investment and $5 billion will be used for paying the debts.

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It’s Time to See the Real Power of Global Economy

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“King of Bond” Mr. Bill Gross was warning the market players for a long time about the extended monetary easing and the danger hidden in it. earlier in this month, the famous money manager “Central bank of Casino”, along with the Janus Capital also have wrote that the monetary is printing money endlessly, just like the way people manufacture chips. They have added that there won’t be any running down in case of chips, but the gamblers will have to go home eventually and have to keep their doors closed.

Federal Reserve’s move of global economy

Federal Reserve has already cut down the interest rates to be zero bound in the year 2008. By the same time, they have also started to do quantitative easing. The quantitative easing is a policy by which the market will be supplied with money that was created newly. This move of the Federal Reserve has definitely made the global economy to recover. It has combined 4 trillion Yuan in the current stimulus civility of China. Though the move of Federal Reserve has brought recovery of global economy, it has also brought an equally unparalleled crisis to the markets.

It was exactly seven years back from now that the Federal Reserve has reversed the interest rates to be zero bound and has started to do quantitative easing. But the quantitative easing was brought back by the Federal Reserve in the year 2014 by the month of October. The loose money era has really become a worrying thing for the US economy but it really helped to strengthen it. By this time, the Fed Chair Ms. Janet Yellen wanted to ease up the Quantitative easing. The Auto market of US will get its real strength only when the stimulus of easy money is wear off, said the marketers.

Yellen has commented on the ease of QE

Yellen has recently met the reporters and have discussed on the US economy. She told that she has a great confidence towards the fundamentals of the US economy. She was questioned about the global economy by the reporters. The question was that whether the global economy will have a slower pace to get recovered just like the US economy faces now. During the year 2004-2005, the Fed was tightening and the growth of the global market also got hummed. It was around 5% in the real terms. Get update more information about IPO Visit Here.

In the past 7 years, the total debt all around the world alone has raised from 50 trillion dollars to 240 trillion dollars. This definitely shows how weak the global economy is. The marketers and economists have told that the new policies of economies all around the world now is expected to bring good sign for the world economy soon. The slow down of the growing market and the market emergence will definitely precipitate the economic crisis now, said the economists. Soon there can be some major changes happening in the world market. . For more details on latest IPO happenings, please follow us at https://twitter.com/financetradingn

Shopclues to Raise $200 Million in IPO

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Shopclues is now planning to enter into IPO, said the sources close to the firm. People who were familiar to the matter have told that the company is now seeking for fund and thus the company has planned to raise the fund through IPO. The Shopclues have not made any official announcement yet on their IPO plans. But it is sure that the company is planning for an IPO soon. The marketers have told that the Shopclues will do a better job in the IPO as the market environment is good now. Soon the Shopclues can be seen the market.

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Intertwined System of Risk Management and Financial Institutions

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Managing risk is essential in any trade. Hence it is always been overlooked as a prerequisite for any active trade. A trader who has made substantial profits in many trades all through his life can loose it all in one or two trades, if the risk management is not so effective. This is why risk management is considered as an essential part of trading now. Especially in current market, risk management is must for a trader to safeguard himself from unstable market environments. This article is mainly to discuss on strategies to be used to save you from the market risks.

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Best Practices for Risk Management in Automated Trading – Part 2

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It is well known to world that the automated trading has become a giant in the world market now. The trading cannot be imagined in future without automated systems. The impact of automated trading in the market now is very high. Though the technology is being appreciated for the speed and other features, which are not possible by human actions, the risk involved in this has always created a fear among the marketers. Many marketers still don’t believe in automated trading. Thus the risk management has become a must in every automated system. In order to have a risk free trading, the marketers are advised to follow certain practices. This article is to discuss on those practices to avoid risks and enhance the trading.

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Best Practices for Risk Management in Automated Trading – Part 1

Best Practices for Risk Management in Automated Trading.png

It is well known to world that the automated trading has become a giant in the world market now. The trading cannot be imagined in future without automated systems. The impact of automated trading in the market now is very high. Though the technology is being appreciated for the speed and other features, which are not possible by human actions, the risk involved in this has always created a fear among the marketers. Many marketers still don’t believe in automated trading. Thus the risk management has become a must in every automated system. In order to have a risk free trading, the marketers are advised to follow certain practices. This article is to discuss on those practices to avoid risks and enhance the trading.

Continue reading “Best Practices for Risk Management in Automated Trading – Part 1”

Leading E-Retailer Flipkart Is On Its Way to IPO

Flipkart

The leading e-retailer in the country Flipkart has told that the company will be holding a profitable business in another 2 to 3 years and the firm has also told that they are planning to go for IPO in another 2 to 5 years. There was a talk among the e-retailers and the marketers that the flipkart may not be entering into IPO as it just wanted to remain as a pvt ltd concern. Now the announcement has become contradictory with the talks. It is expected that the marketers would show a great interest in the Flipkart IPO as the firm is leading one in the industry.

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