Your most memorable comments of the year

Getting our readers to interact with us, as well as with one another, is one of our biggest priorities here at FE Trustnet. It is therefore very satisfying that we’ve seen the number of comments on our stories grow from around an average of 20 in 2011 to an average closer to 100 in 2012.

From data-led studies examining the outperformance of investment trusts over open-ended funds, to the questionable effects of the retail distribution review (RDR) on the IFA industry, our articles have evoked strong views from our readers throughout the year. Here are 10 of the best, chosen by the FE Trustnet Editorial team:


1. "[Liontrust Special Situations has] good Alpha, good Beta, an excellent Sharpe and Information ratio, and it’s in the top 5 of its sector – a belting choice. Just a word of caution – don't put all of your eggs in one basket. I don't know how much you've got to invest but consider what happens if things go pear-shaped for this fund. I would find another equally good fund and go 50/50. Just my own opinion but bear in mind that, 'past performance is no guide to the future.'"

Tiny Clanger thinks FE Trustnet Reporter Alex Paget’s decision to invest in the Liontrust Special Situations fund for his monthly savings plan is a good one, but suggests he spreads his risk across more than on portfolio.


2. "[Anthony] Bolton launched his fund at the peak of the market with high gearing, so it's not surprising that it's lost money. But that can't explain all the underperformance. He's proved himself a very good manager – in the UK stock market. But China is very different, both economically and politically. It's less transparent, there's more political interference and more corruption. The winner of the Derby doesn't win the Grand National."

John Clark provides an interesting insight into the underperformance of Bolton’s Fidelity China Special Situations investment trust, since its launch in April 2010.


3. "I think that the IFA profession will be reduced by more than half. The proposals will throw small investors into the arms of the banks who as we already know are absolute disaster."

MPConnolly thinks the retail distribution review (RDR) will mean that investors with a limited amount of money miss out on effective financial advice.


4. "Harry Nimmo is an exceptional smaller companies fund manager, but in my view you will not get the best of him unless you switch to his similarly named investment trust. The charges are much less than the fund named above and the performance is even better."

Art Tels thinks investors would be better of holding the Standard Life UK Smaller Companies trust, which has an ongoing charges figure of 0.97 per cent, instead of the Standard Life UK Smaller Companies fund, which has a total expense ratio (TER) of 1.69 per cent.


5. "It is not surprising that they are unpopular. They do not pay commission to IFAs, which is why they do not recommend them to their clients who are all the poorer for it."

James Close thinks the lack of retail money in investment trusts is because advisers have no incentive to recommend them – perhaps something that will change next year following the introduction of RDR?


6. "Currency risk is mitigated if you diversify properly. Still, guilty as charged; I hold double the weight in UK funds than in US, so this is food for thought."

Muddy-Mae Suggins believes head of FE Research Rob Gleeson is right to highlight UK investors' obsession with holding UK funds.


7. "I can't disagree with the Buffett maxim, but what is notable is that the bulls seem to be the predominant voice just now. No-one can time the market, obviously, and just as obvious is that there will be a time when equities are attractive. But I can't help but feel slightly concerned when managers cite low [price-to earnings] ratios in the indices as a whole as rationale for bullishness - maybe there's more to it than that, but P/E is nothing more than an indicator of expected earnings growth, and just one at that. These P/E ratios for the market as a whole also fail to take into account for the outliers recording losses, or with very bleak immediate prospects, such as banks."

The aptly named Sceptical isn't convinced by Thomas See's belief that equities present investors with good value at the moment.


8. "The big question is what happens [to the FTSE] in the New Year. I believe the fiscal cliff and European peripheral exits will not be allowed to happen. The FTSE 100 was at nearly 7,000 13 years ago and I believe we could well see a push through 6,000 towards 7,000 and beyond over the next 18 months."

Both FE Alpha Manager Giles Hargreave and FE Trustnet reader David Stephen believe the UK market will go from strength to strength in the coming months. At the time the story was written around a month ago, the FTSE was a touch below 5,800; now it's just under 6,000.


9. "You hit the nail on the head in your second paragraph when you state 'boutique funds do not have the same degree of financial stability of their higher-profile rival.' It's natural that advisers steer clear. The other reason why many, but not all boutique funds are difficult to include, is their lack of join-up with back office software. We have a number of clients with legacy investments with some of the providers you mention, and it's an absolute nightmare trying to tie in real time valuations, from 'boutique' providers."

Phil Shaw highlights some very important reasons why advisers find it difficult to recommend top-performing boutique funds.


10. "[Tom] Dobell's long-term track record is exemplary. I've added to my holding when the fund has had bouts of underperforming in the past and been richly rewarded thanks very much."

Doug Batchelor has no plans to sell out of M&G Recovery, in spite of its recent underperformance.


We hope to further increase our average comments per week figure in 2013, so please keep them coming. The team is always happy to have feedback on their stories, and if there are areas of investment you’d like to see covered in more detail, please don’t hesitate to let us know.