Exchange Traded Funds
John Lang, managing director of independent financial adviser Tower Hill Associates, points out that both equities and fixed-interest markets can be accessed via ETFs. The client’s attitude to risk and age will determine the proportion in each: then the equity portion can be broken down regionally using broad market trackers. ‘We would put say half into a FTSE All Share ETF; there is a developed countries ex UK product that could be used to get exposure to the US, Europe and Japan with a single fund: and we’d also put maybe 10 per cent into an emerging markets ETF,’ he says. ‘A simple global portfolio of bonds and equities could be constructed with just five of six ETFs.’
Money Observer (Exchange Traded Funds Supplement) May 2010
Insider blows the whistle on fees
“The industry does not want this to get out”, says John Lang, at financial planners Tower Hill Associates. He’s been highlighting hidden charges for several years, and points to a study done for the Financial Services Authority in 2000 by economist Kevin James. It showed that hidden charges added around 1% to the average TER on a unit trust, but just 0.1% – 0.2% to a tracker fund. “So if clients are investing by themselves in a tracker fund, they are probably 2% a year in the money, which is huge”
Money Week 16 October 2009
Shake-up will jingle the cash around
“The good firms out there are the ones that offer a proper financial planning proposition,” claims John Lang, director with Tower Hill Associates. “Whether they are small or niche is almost irrelevant. The RDR is going to force IFAs to be far more transparent.”
Financial Times (Private Client Wealth Management Supplement) 3 October 2009
A portfolio for all seasons
“Rather than speculating on which funds are best to invest in during a recession or as we come out of one, consumers should spread their risk by investing in different asset classes (equities, property, commodities, bonds and cash). This creates not only a “portfolio for all seasons” but also one that gives the client the best chance of achieving their short, medium and long- term financial objectives. Then the important task of selecting the right funds can begin. Our preference is for index trackers with low tracking error and low charges or Exchange traded funds (ETFs), as they reduce the cost drag on investment performance. Finally if timing the markets is of concern then “drip feeding” money back in over the next 6 to 12 months may be a practical solution, albeit a costly one if market sentiment improves soon.”
Telegraph.co.uk 17 July 2009
Savers advised to find better uses for cash
John Lang, adviser at Tower Hill Associates, says customers not wishing to take investment risk should use surplus cash to pay down their mortgage, while keeping at least six months’ net income in cash. This strategy could also come in useful when homeowners come to refinance their properties as the best deals are reserved for those with large amounts of equity in their home.
Financial Times 13 February 2009
