Investors' Chronicle

This week’s reader, Jane, is going through a considerable change. Recently divorced in her fifties, she is now solely in charge of her finances and her future. Her investment journey began in the 1990s and her pension pot is healthy, but can it support an early retirement, helping her adult children onto the property ladder, while satiating her appetite for risk? Our experts lend their advice.

'I'm now in charge of my £860,000 portfolio – can I retire at 60?' Portfolio Clinic: Our reader is now fully 'responsible for her future' and hopes that it involves an early retirement. Dave Baxter assesses the situation

Figuring out if a fund manager is a rising star or just on a lucky streak is tricky. Investors want to make sure fund managers have survived difficult market conditions, or at least have what it takes, before they trust them with their hard-earned cash. To help investors, Holly Mckechnie has been on the hunt for the newbies making their mark. Find out who they are here:

The rising star fund managers to watch We search for the managers making their mark across UK small caps and global portfolios

Debates over who is the ‘greatest of all time’ can sometimes get heated. Pelé, Maradona or Messi? Djokovic, Nadal or Federer? When it comes to the investing world, it’s the likes of Warren Buffett, Jim Simons or Peter Lynch? James Norrington adds four of his favourites to create an investing Mount Rushmore, and ties together their thinking and explains how you can implement their ideas to boost your portfolio. Find our latest Big Read here:

Lessons from the world's greatest investors We pick four famous names for our investing Mount Rushmore, combining their wisdom and expertise into tangible takeaways to boost your portfolio

Buybacks have become increasingly prevalent in the UK market in recent months. They offer a source of returns, though at the cost of London’s market size, and Julian Hofmann believes there are still plenty more to come. Find out the pros and cons of share buybacks and what the professionals make of them here:

Why we should pay more attention to share buybacks They are an increasing source of investor returns, responsible for the shrinking London market, and, there are plenty more to come

Financial markets don’t typically respond to political news. However, in the US, supercharged moments in the past 10 days have created a unique situation. From vastly different outlooks on where corporation tax could go, to a potential deregulation of the oil and gas industry, find out what the candidates’ plans mean for your investments:

What markets are making of America's political drama Kamala Harris vs Donald Trump: who would do more for investors?

Getting your finances in order ahead of retirement takes time and effort, so it’s important to take a good look at your options well ahead of the intended date. From knowing when to begin derisking your investments to choosing between an annuity or a drawdown, Val Cipriani explains everything you need to know to prepare your portfolio.

How to prepare your pension for retirement The transition from saving to spending can feel disorienting – we look at how best to set up your portfolio

Predicting the future can be futile, but making educated guesses forces us to fully analyse any given situation, which can make us better investors. That’s why fund managers love making forecasts, often publishing between two and four every year. We’ve just passed the halfway point of 2024, and the professionals’ latest predictions are out. Dan Jones looks at where they are placing their bets and explores how well the professionals called the first six months of 2024. Find out more:

How fund managers' thinking has changed in 2024 How have asset managers responded to the latest stock market rally?

This week’s readers, Ian and Harriet, hope to retire comfortably when the time comes, but predicting how much they’ll need in their pensions is proving tricky. Their combined income is substantial and over the past 10 years, they’ve built a sizeable pot – but will sticking to the current trajectory be enough? Our experts advise the pair on how they can optimise their investment strategy and use Isas better to avoid tax traps down the road. Find out more here:

'How do I turn my £270,000 pension into £2mn?' Portfolio Clinic: Our reader has an ambitious target but may be prioritising pension contributions at the expense of his Isa

Enthusiasm for the Olympic games might not be at a fever pitch in Paris, but that won’t kill the buzz for the athletes getting ready to battle it out. Behind the scenes, another battle is brewing; that of the sports brands supplying both professionals and consumers. The industry has traditionally been a duopoly, first Adidas versus Puma, and then Nike versus Adidas. But as fashion changes and new entrants gobble up market share, who will come out on top? Michael Fahy and Christopher Akers look at who’s best placed to go for gold:

Who will win the battle of the sports brands? As athletes gather in Paris to compete for the ultimate prize, sportswear brands are pulling out all the stops to be at the top of their game. Michael Fahy and Christopher Akers find out who is most likely to go for gold

Labour has announced plans to ‘get Britain building’ with 300,000 new homes per year. This is no small feat and if it’s to be achieved, the UK’s listed house builders will be in for a win. However, the industry is complex and simply building more is not always a boon for developers, and there are quirks to factor in. Robin Hardy explains why and which companies are best placed to benefit. Read The Analyst here:

Is it finally time to buy back into housebuilders? The Analyst: Robin Hardy assesses the attractions of developers in light of Labour's plan to get 1.5mn new homes built

The wave of activity in recent months suggests commercial real estate market is coming out of the doldrums. Declining rents are turning round and even the London office market is better than it seems. Fund managers are even buying more shopping malls as M&A picks up. Michael Fahy unpacks all the latest action and gives Reit investors reasons to be cheerful. Find out more here:

Why Reits' chunky discounts could soon narrow Valuations in many parts of the commercial real estate market seem to be bottoming out, Michael Fahy reports

Using size as a proxy for success isn’t always a sensible method of sourcing investments. Big isn’t always beautiful and Alex Newman recognises that in his latest stock screen and, by combining other metrics such as earnings growth and cash conversion, he picks out his latest batch of large and solid companies. Find out more here:

Can these 16 'Big Reliable' stocks turn it around? Stock screen: Deciding what is a 'big' company isn't simple but it can be a proxy for scale advantages and economic moats

Student accommodation real estate investment trust, Unite (UTG), recently published what appeared to be a positive trading update. The sector, quantitively, seems robust but behind the figures lies a problem of falling international student applications. Julian Hofmann explores the outlook for the student rental sector, the effect falling applications could have on universities and what the new government could do to help. Find out more here:

Reit investors need to reconsider the 'brutal' student market On the surface, university accommodation looks as robust as ever, but a combination of events could plunge landlords into chaos

This week’s reader, Jessica, made the best of a bad situation during Covid and began her investing journey. Now aged 31, she is starting to think about how she can grow her portfolio to meet the demands of living in London and rising rent all the while saving for her future. Our experts commend her habits and advise her on the best strategies and funds to buy so she can be financially secure.

‘I’m 31 – how should I invest to buy a home and retire?’ Our young reader is making headway having only invested since the pandemic but needs to broaden her fund choices. Taha Lokhandwala takes a look

Managing costs is vital to running a successful portfolio, and the expansion of the exchange traded funds industry has given investors thousands of opportunities to invest in almost every asset going at very reasonable prices. But, navigating your way through, and finding the right funds, is very, very difficult. Fret not, for more than a decade, Investors’ Chronicle has cast its expert eyes over what’s available and picked out the best 50 ETFs across a range of assets, markets and styles. Dave Baxter and his expert panel have refreshed their picks and you can find our updated list here:

IC Top 50 ETFs 2024: the best ETFs to buy Our 2024 list of the best low-cost building blocks for your portfolio

John Rosier is back with his latest Private Investor’s Diary, and he’s got quite a shock for his followers. Just as he’s about to settle down and look forward to a period of political stability, John reveals why he’s had his head turned on cryptocurrency, how much he plans on buying, and how he’s going get exposure given the UK is behind the US in authorising dedicated ETFs. Find out more here:

Private Investor's Diary: Why I'm buying bitcoin and blockchain stocks John Rosier discusses his latest purchases and looks ahead to a period of political stability

The property market remains a mixed bag for buy-to-let landlords with rents rising but prices stagnant. But, more importantly, investors will be hoping Keir Starmer’s Labour pick up where the Conservatives failed. While the direction of travel on renter protections has been clear for many years, a new government means much remains uncertain, including energy regulation and capital gains tax. Val Cipriani lays out what we know so far: https://on.ft.com/4bw0iXe

What the Labour government means for landlords Buy-to-let landlords should expect Keir Starmer's team to pick up where the Conservatives failed, and bring in tenant protections

Those who stand out from the crowd and push for something different tend to be the ones hailed as “great”. But is it great when you apply an alternative way of thinking to investing? In our latest stock screen, Alex Newman explores classic metrics of contrarian investing that, although controversial, can lead to big wins. Find out more here:

Five UK contrarian stocks …and one (er, contrarian) warning against contrarianism

Smaller companies’ performance tends to be a mixed bag, and even professionals can get it wrong sometimes. However, in recent months small caps have been doing pretty well and some industry experts believe things may soon improve further, says Dave Baxter. Find out what the top 16 companies are that feature among the best-performing fund managers' top 10 holdings here:

Professionals' favourite UK small-cap shares Some 16 companies feature regularly among the best-performing fund managers' top 10 holdings

Since going freelance, this week’s reader is looking towards the future. With hopes to draw from his pension when he retires and put money away into his daughter’s Junior Sipp, he needs to think conservatively about his growth-oriented strategy. Find out what our experts advise him on contributions, investing in sustainability and AI, and diversification.

'Can my £130,000 portfolio make 8% a year?' Portfolio Clinic: Our reader has an ambitious returns target but his investment strategy doesn’t quite match his goals

The new government with a five-year mandate raises the prospect of major changes to the way the nation is governed. Investors’ Chronicle looks at what happens next:

What investors can expect from Keir Starmer’s Labour A new government with a five-year mandate raises the prospect of major changes to the way the nation is governed. IC reporters look at what happens next

As interest rates started to rise around the world, plenty of housing markets started to suffer. But the UK was one of a handful of nations where house prices rose, despite the Bank of England ramping up the cost of borrowing and mortgage providers spooked by Liz Truss’s chaotic Budget. The UK’s somewhat unique approach to buying property insulated it as rates rose, but this same feature could have the opposite effect as rates come down: hence why hopes of a house price resurgence are misplaced, writes Hermione Taylor. Find out what’s going on here:

Why interest rate cuts won't boost house prices Fixed-rate mortgages are insulating homeowners – but not for long

Attention investors! Rate your favourite and least favourite investment services based on factors such as performance and customer care. Your vote influences the winners.
🗳️ Vote here: https://www.ftfeedbackforum.ft.com/c/a/6VEZ7BE5s2zDv5zDemGeij?utm_medium=social&utm_source=linkedin&utm_campaign=icawards

One of the key components of Big Tech’s success is the companies’ ability to grow while keeping huge capital investment low. Unlike legacy businesses such as oil stocks or retailers, tech firms have managed to contain the cost bases by investing only in people rather than big physical infrastructure. But now, AI is changing all of that. Spending on computing power and AI hardware has gone through the roof, and this could, and maybe should, fundamentally shift how we view and analyse Big Tech stocks. Arthur Sants explains more about what this means for investors here:

The hidden problems behind Big Tech's big splurge Huge AI spending means the stocks are no longer capital light, which will eventually impact what made them successful

Is it time to change your pension provider?
Moving to a new platform is becoming easier, but finding out what they charge – and what they offer in return – is becoming more complex. So fret not, Holly McKechnie runs through the UK’s largest providers, breaking down costs and the services they provide, so you can find the best pension for you. Find out more here:

How to choose the best pension provider We look at the most recent changes in the land of pension platforms and help you pick the most suitable Sipp for your needs

In this week’s Portfolio Clinic, our reader has taken charge of his investments but now needs to turn a large and unwieldy portfolio into something that can support his grandson for years to come. There’s a lot to do; he has more than 60 holdings and one huge £1.1mn investment, leaving our advisers with a lot to deal with. Find out what they have to say here:

‘I’ve sacked my adviser – how do I invest my £9mn portfolio?’ Portfolio Clinic: Our reader wants to set up a large portfolio so it can provide income for his grandson for years to come

There are numerous ways to run one’s finances, but often when coupling up with another, joint bank accounts are opened, costs are split and Isa accounts are shared. But what is the best way? There is of course no simple answer to that question. And, while chatting Nvidia’s valuation does not make for romantic pillow talk, keeping things secret or handling money poorly can break up a relationship. Val Cipriani looks at the best ways to merge finances and the pitfalls to avoid. Find our latest Big Read here:

The pros and cons of investing as a couple Poor planning can break a relationship but merging finances is not a simple solution. Here are the best ways to make it work and the pitfalls to avoid

The prospective Prime Minister, Keir Starmer, has said the party hopes to raise more than £5bn through chasing tax avoiders and evaders if they get into power. The beneficiaries, the NHS and HMRC, are certainly worthy of support but experts are weighing in on whether much more remains to be squeezed out of the ‘tax gap’. Find out more:

Tax experts question Labour’s £5.2bn tax avoidance crackdown The party should not ‘spend the money before it’s been collected’

Our reader is based in the Netherlands and has been granted non-dom status in the UK. After selling a UK flat in 2023, they are curious if they should have paid capital gains tax and if so, what the consequences are of a late payment. Our experts advise them on how and when they should declare it to HMRC, as well as the changes in the UK’s rules for non-doms. Find out more here:

'I'm a non-dom – do I have to pay capital gains tax?' Tax & Pensions Clinic: Our reader has sold a property and made a profit but isn't sure how, when and if he should declare it to HMRC