Our latest commentary - No Chance of Redemption

On June 3rd, one of the UK’s most high-profile Fund Managers, Neil Woodford, was forced to suspend redemptions from his flagship Equity Income fund after a prolonged period of dire performance. The move triggered an avalanche of criticism and concern from investors in the fund and highlighted the vulnerabilities associated with the (commonly used) fund structure that Mr Woodford had adopted.

In this month’s overview we examine what leads to some fund managers have to ‘gate’ (suspending dealing in) their funds. We assess the impact of such a move on the underlying investor and we also consider what can be done to avoid such funds and the associated consequences.

Our latest commentary

Stock markets have started 2019 in excellent fashion, with most of the equity indices that we track generating strong returns over the quarter. However, last week the dreaded ‘inverted yield curve’ raised its ugly head once again. You may recall from some of our previous missives that when US short-dated government bonds start to yield more than long-dated government bonds (an inverted yield curve), this has historically been a precursor to recession in the US economy. It may well be different this time around (as we argued at the time) but this well-regarded technical factor is certainly worthy of consideration because it has persisted into 2019.

Charles Incledon named as one of PAM's 40 under 40


Bowmore would like to congratulate Charles Incledon on being named in the 2019 Private Asset Managers (PAM) Top 40 under 40.  

The PAM Top 40 Under 40 initiative identifies, recognises, introduces and promotes the rising stars of the private client wealth management world in the UK and UK Crown Dependencies. The final list was drawn up based upon the qualities and achievement of the individuals. Other factors taken into account included the reputation or performance of the company that the nominee works for, feedback from the most senior executives, trajectory of promotion/business development success and relative age – younger individuals achieving senior positions at the same time as older peers points to greater future potential.

Charles has had a significant impact on the business since joining Bowmore in early 2018. Bowmore has doubled in size over the past 12 months and Charles has been a major driving force behind the business’s growth. The prestigious accolade of PAM top 40 under 40 2019 is thoroughly deserved.

PAM’s publication on Charles’ achievements over the past 12 months is quoted below:

“Charles joined Bowmore in early 2018 as the firm’s portfolio specialist. Charles is responsible for promoting Bowmore’s discretionary services to the firm’s intermediary partners, as well as meeting with clients directly. Within his first 12 months at Bowmore he played an instrumental role in adding £70 million of assets under management. Charles also played a key role in establishing Bowmore’s managed portfolio service with platform providers such as Standard Life Investment Hub and Parmenion. Prior to joining Bowmore, Charles was a Discretionary Wealth Manager at HSBC Global Asset Management. Charles is also a Chartered Member of the Chartered Institute for Securities and Investment.” PAM Insights – The Wealth Net – 2019

Our latest commentary - Pigs might fly

Whist we, the British public, have been worn down by three years of Brexit debate, we should perhaps have some sympathy for the Chinese who have been confronted with debate that their economy will suffer a hard landing for close to seven years now. 

Back in August 2012 after Wen Jiabao, the then Chinese Premier, had announced that their revised annual growth target for 2012 was a measly 7.5% the Financial Times led with the headline - Economists weigh Chinese ‘hard landing’.  Four years later George Soros, the veteran hedge fund manager, declared - ‘A hard landing is practically unavoidable’.

Yet the Chinese economy has ignored these doom-mongers and has continued to march onwards, albeit with a few faltering steps along the way.