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funds down almost 3%
mark baillie
Posted: 16 September 2017 08:26:51(UTC)
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Joined: 16/09/2017(UTC)
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This may be a stupid question:
Why did my global funds i.e japan,india etc go down almost 3% on friday? Is this due to the pound rising as the individual stock markets didn't show anything like this fall.
AJW
Posted: 18 September 2017 14:00:24(UTC)
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Depends what they're invested in in those markets.
Mr Helpful
Posted: 18 September 2017 14:51:38(UTC)
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mark baillie;51158 wrote:
This may be a stupid question:
Why did my global funds i.e japan,india etc go down almost 3% on friday? Is this due to the pound rising as the individual stock markets didn't show anything like this fall.


Probably partly due to :-

- Currency loss
- More general 'risk-off' reaction to BoE comments
- Something else (let us know)

Surprisingly the expected safe haven of Bonds also showed declines.
King Lodos
Posted: 18 September 2017 15:08:20(UTC)
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Strengthening pound on Mark Carney's comments, raising rates sooner, that surprised markets.

It's funny because in dollar terms, US stocks are hitting new highs – they're in a raging bull market .. Over here, the effect of the strengthening pound has taken global funds back down to where they were months ago.

Opposite of 2016, when the weakening pound meant any foreign stocks you held would've seemed to go up >10% .. I moved a bit more into cash over the week – seeing whether the trend continues
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Tim D on 19/09/2017(UTC)
Jay Mi
Posted: 18 September 2017 18:03:18(UTC)
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Mr Helpful;51221 wrote:
[quote=mark baillie;51158]This may be a stupid question:

- Something else (let us know)

Surprisingly the expected safe haven of Bonds also showed declines.


Didn't Korea fire another rocket Thursday night? Plus the train bomb in London.

One of my emerging markets yield bonds fund wiped out all of its profit since April over two days pretty much.
I sliced out all of its previous profit a couple of days before that to invest elsewhere, purely by accident, but i seem to have an accidental habit of selling before a fall and re-buying at the lower price. Mainly by transferring to an isa.
No idea why it fell so much. wasn't;'t expecting to see it as a loss today!

Same thing happened on a tech fund I'm in. I sold out last week, as the platform i'm going to transfer too doesn't offer that fund. I planned on re-buying on the same day on Charles Stanley, that didn't go through the same time as the sale, so hopefully once it goes through, it's being re-bought at the now lower price.
2 users thanked Jay Mi for this post.
Freddy4Skin on 18/09/2017(UTC), dlp6666 on 19/09/2017(UTC)
marcos alexander
Posted: 18 September 2017 18:31:58(UTC)
#6

Joined: 18/09/2017(UTC)
Posts: 2

Across the board.....Didn't seem to matter where or which part of the world, every fund was down this morning.

Baillie Gifford Greater China Fund Class B Accumulation
£3,706.65 £3,668.46 -£38.19 5%

Baillie Gifford Emerging Markets Growth Class B Accumulation
£3,706.65 £3,667.47 -£39.18 5%

Baillie Gifford Japanese Smaller Companies Class B Accumulation
£3,706.65 £3,665.80 -£40.85 5%

Fidelity Japan Smaller Companies Class W Accumulation
£3,706.65 £3,661.63 -£45.02 5%

Old Mutual Asia Pacific Class R Accumulation
£3,706.65 £3,648.84 -£57.81 5%

Legg Mason IF Japan Equity X Accumulation
£3,706.65 £3,644.37 -£62.28 5%

Old Mutual UK Mid Cap Class R Accumulation
£3,706.65 £3,643.61 -£63.04 5%

Aviva Investors Multi-asset Fund V
£3,706.65 £3,637.14 -£69.51 5%

Aberforth UK Small Companies Accumulation
£3,706.65 £3,634.82 -£71.83 5%

Old Mutual North American Equity Class R Accumulation
£3,706.65 £3,607.17 -£99.48 5%

Henderson European Smaller Companies Class I Accumulation
£3,706.65 £3,606.43 -£100.22 5%

AXA Framlington Global Technology Class Z Accumulation
£3,706.65 £3,597.36 -£109.29 5%

Investec Global Gold Class I Accumulation
£3,706.65 £3,387.06 -£319.59 5%

AXA Framlington Biotech Class Z Accumulation
£2,000.00 £1,942.23 -£57.77 3%

Liontrust Sustainable Future Global Growth 2 Acc
£1,000.00 £1,000.00 £0.00 1%

Rathbone Global Opportunities I Class Accumulation
£1,000.00 £995.58 -£4.42 1%

Schroder Small Cap Discovery Class Z Accumulation
£1,000.00 £983.87 -£16.13 1%

Sarasin Food & Agriculture Opportunities Class P Accumulation
£1,000.00 £980.46 -£19.54 1%

Neptune India Class C Accumulation
£1,000.00 £979.33 -£20.67 1%

Invesco Perpetual Latin American Class Z Accumulation
£1,000.00 £978.66 -£21.34 1%

Aberdeen Latin American Equity Class I Accumulation
£1,000.00 £977.93 -£22.07 1%

Troy Trojan Capital Class O Accumulation
£1,000.00 £975.91 -£24.09 1%

Threadneedle Latin America Class Z Accumulation
£1,000.00 £975.68 -£24.32 1%

Neptune Latin America Class C Accumulation
£1,000.00 £975.50 -£24.50 1%

Neptune Russia and Greater Russia Class C Accumulation
£1,000.00 £969.75 -£30.25 1%

Jupiter India Class I Accumulation
£1,000.00 £967.62 -£32.38 1%

Any comments on where I am going wrong would be greatly appreciated, is it possible to hedge against drops like this?
DJLW
Posted: 18 September 2017 18:52:34(UTC)
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Mainly Currency movements - recently the devaluing £ has made our Foreign Assets seem more valuable - now the reverse is happening.

Conventional investment industry wisdom seems to suggest that one should/ can ignore currency movements over time because ultimately it will all sort itself out - I've always thought this was a bit of a cop out and actually more of a "too difficult pile" issue.
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Tim D on 19/09/2017(UTC)
Lemanie
Posted: 18 September 2017 19:20:59(UTC)
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Jay Mi. "Didn't Korea fire another rocket Thursday night? Plus the train bomb in London"

Was President Trump worryingly quiet?

TJL
Posted: 18 September 2017 19:45:28(UTC)
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China and Russia are telling him to stop sabre rattling - perhaps he's listened for once.
Or perhaps he's decided the best policy is just to ignore 'rocket man' (don't think that's going to work).
There was an interesting but not very obvious headline in the Telegraph (I think), to the effect that China would not tolerate North Korea as a nuclear state; very surprised it did not get more coverage - that's what we need don't we (i.e. China to flex its North Korea related muscles)?
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Lemanie on 19/09/2017(UTC)
King Lodos
Posted: 18 September 2017 21:07:13(UTC)
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Well this is what Emerging Mkts have done since the beginning of August (VWO) in dollars.



I bought at the green line, and I'm down about 3% (sterling) .. Since August, Sterling's up nearly 5% against the dollar .. It has been a sharp move .. I usually treat currency moves as part of the share price move .. It's a tricky one, but then everything in markets is relative
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Mickey on 19/09/2017(UTC)
HR Man
Posted: 19 September 2017 08:49:04(UTC)
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On the Bonds issue, Long Term Bonds were down as much as 4% on the day, whilst the Short Duration ones were down less than 1%.

The reasons are clear - CPI Inflation went up to almost 3% whilst the BOE message is that interest rates are much more likely now in the coming months.

This spooks bond investors - if your yield is say 3% on an Investment Grade bond and inflation is 2.9%, what return are you getting in real terms? Equally, if rates are going up, a 3% bond is not that attractive if say cash returns go up to close to 2% with pretty much little risk.

The answer if you hold bonds is probably to ensure that you hold some of your portfolio in short duration bonds-the maturity of the average bond fund is around 12 years when really you should hold stuff that hold most within the 1-5 year range. The yield is low but they are less likely to react when rates and/or inflation spikes. There are also some really good short duration funds out there (Royal London, Axa, M&G and L&G),

Take care out there...................
3 users thanked HR Man for this post.
dlp6666 on 19/09/2017(UTC), Jay Mi on 19/09/2017(UTC), Tim D on 20/09/2017(UTC)
Jay Mi
Posted: 19 September 2017 14:43:53(UTC)
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Lemanie;51234 wrote:
Jay Mi. "Didn't Korea fire another rocket Thursday night? Plus the train bomb in London"

Was President Trump worryingly quiet?



Spoke too soon. Switched to sky news to have a tea break from catch up tv...
Something about "totally destroy North Korea" - He was brewing.
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Lemanie on 20/09/2017(UTC)
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