Model returns

Article Abstract:

Benchmarks for UK private-client portfolio management have been developed in the UK. The association of private-client managers or Apcims is introducing a new benchmark service, and WM Company has already introduced a benchmark of its own. FTSE International has collaborated with Apcims to produce benchmarks for three types of portfolio, capital, income and mixed. WM Company's benchmarks are different in a number of ways such as greater detail given for asset allocation.

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Diversification fails yet again

Article Abstract:

A drop in Japanese stock prices from Oct 1997 poses questions about the wisdom of diversification. Diversification is seen as useful because markets may have a low correlation and this gives some protection against a downturn in one market, which may be offset by a better performance in another market. Markets can still fall at the same time for different reasons, or they may fall because of the same reason. A past low correlation will not necessarily persist.

Securities and Commodity Exchanges, Security and commodity exchanges, Securities Exchanges, Japan, Stock-exchange, Stock exchanges, Exchanges

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Keeping tabs on fund managers' performance

Article Abstract:

Investors can assess their portfolio managers' performance using benchmarks from WM Company. There may be differences because the portfolio does not match that of WM Company and stock selection may differ. Investors should not be too concerned over short-term underperformance, but they should ask questions if underperformance persists. They should discus aims and strategies with brokers and consider switching following a prolonged period of underperformance.

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