Latest from our blog

Sometimes the best value is right on your doorstep – Invest in the UK

Date Published: 18 March 2018

Category: Uncategorized

Since SCM started, we have found considerable opportunities outside the UK by investing in stocks with either lower valuations or higher growth potential, or ideally a combination of the two; rather than in their UK alternative. Since SCM started investing for clients on 8th June 2009, investors would have received 92% extra return in £

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Investment Association's left and right Brain

The IA’s ‘C’ Conundrum – SCM investigates

Date Published: 19 August 2016

Category: Investment, Uncategorized

For years we have suspected that the Investment Association (IA) has been bereft of what we call the 3 C’s — Common sense, Clarity and being Consumer Centric; particularly in the darkest days of the IMA when it found it impossible to logically analyse any set of data, unless it was seriously biased and therefore portrayed their members in a good light.

Snow flakes representing absolute zero. The return made by absolute funds in 2016

Absolute Return Funds Return Absolutely Zero in 2016

Date Published: 4 August 2016

Category: Investment, Uncategorized

As you might naturally expect, we keep a close eye on our competitors and funds that are similar to our various portfolio strategies. For many years, I have been cynical of the performance of many Absolute Return Funds that produce precious little returns for investors.  What is also mystifying is why advisers are sending clients

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Brexit Property

Brexit Hits Property Funds — Compensation Could Hit £140 Million

Date Published: 8 July 2016

Category: Brexit, Investment, Uncategorized

SCM Direct warned the FCA, post-Brexit, on Monday 27th June that large UK physical property funds needed to be urgently re-priced or suspended to protect investors.  Yet the majority of these funds took up to nearly two weeks to materially re-price or suspend dealing. The question is who is culpable for the c. £140m of

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Albert Einstein in black and white

Would even Einstein understand the Standard Life Global Absolute Return Fund (GARS)?

Date Published: 21 June 2016

Category: Investment, Uncategorized

            I have a confession to make — I have never understood GARS – its complex strategies, the risks of these strategies, or how it could possibly achieve its targeted returns, in all market conditions. Objective – according to the factsheet: ‘The Standard Life Investments Global Absolute Return Strategies Fund

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The betting odds of the probability of Brexit

Brexit — The Known Unknowns

Date Published: 14 June 2016

Category: Brexit, Investment, Uncategorized

It is often smart to be contrarian and oppose the herd mentality when fundamentals become mis-priced as a result of excessive fear or greed. Sometimes markets are effectively paying you to act one way as the probabilities are skewed in your favour.  There are not many consistently successful professional sports’ betters but the ones I

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Today’s Great Investment Myths

Date Published: 3 December 2015

Category: Investment, Uncategorized

It is the job of marketing departments to come up with new investment terminology, fads, and revelations.  The problem is that their slick advertising create and then perpetuate investment myths that have no basis in reality, and often take unsuspecting consumers down the wrong investment path. Myth #1 – Index funds always do worse than

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Bricks stacked up

As safe as bricks and mortar? Only if you pay the right price at the beginning.

Date Published: 16 May 2014

Category: Investment, Uncategorized

As safe as bricks and mortar used to be the description given to large property funds before several funds were suspended in 2008 because they could not cope with large redemptions when the underlying commercial property market weakened and liquidity dried up. Now I read that every fund manager is turning bullish and recently I

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Time to Ratchet Up The Market Cap?

Date Published: 13 January 2014

Category: Investment, Uncategorized

Our research shows that the average UK equities fund holds 48% in small/mid-caps vs. an index weighting of just 16%, with the mid-cap FTSE 250 rising by 33% vs. 19% for the blue-chip FTSE 100 in 2013; with many of the best performing UK funds owing their outperformance to their size bias rather than stock

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