The fall in the value of Sterling since the referendum has provided a major boost to the large caps in the FTSE 100 index, which on average derive 70% to 80% of their revenues from overseas. UK smaller companies have received less of an advantage as 60% of their business originates in this country, but if the economic outlook improves and the pound recovers it would be the small caps that would be the main beneficiaries.
When choosing a small cap fund it is essential to make sure that the manager has excellent stock selection skills, as the range of possible investment outcomes is enormous. Many of these businesses operate in niche markets and are hugely profitable, whereas those with high debt or that are susceptible to competition are extremely vulnerable and could fail altogether.
by Nick Sudbury | Funds| 2 mins. to read A couple of weeks ago I wrote about the new Supermarket Income REIT (LON:SUPR), which is in the process of buying a portfolio of supermarket freeholds. These sites that are already up and running will then be leased back in order to generate a high and inflation-linked yield for investors.
by Robert Stephens|2 min. to read The world of pensions can be a minefield. There is a wide range of options available to individuals, with different tax implications and flexibility in the long run. However, two of the most common investment vehicles for retirement are ISAs and pensions.
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