The companies agreed the deal last year for an undisclosed sum. (Victoria Jones/PA)
(Picture: PA Wire)Despite global turmoil, shares in big companies appealing. Going upwards, and still cheap, say many.
The FTSE 100 is heading to new highs and seemingly, inexorably, past the 8000 level at some point soon.
A good time then, to be a City fund manager?
Well, not really. Some of our top stock pickers, notably Terry Smith and Nick Train, are having a rough time of it.
Today Ashmore, a huge emerging markets fund group, reported that it is losing money apace.
Profits have halved and nervy investors are taking billions off the table -- $7.6 billion worth in the half year.
Ashmore makes the point that last year was tough for emerging market specialists, and that this year should be better.
Its doubtless sophisticated clients hope so, and no one should worry too much for them. They knew the risks.
Meanwhile, over at Liontrust where the investors tend to be smaller, retail clients – you and me – there is also turbulence.
Robin Geffen, a City legend near enough, is out as part of a shake-up that is surely related to less than stellar performance.
Liontrust is also a good business, it will figure stuff out in time.
But in their different ways, what Ashmore and Liontrust are tyring to do is outwit markets, to do better than the index. In the short run at least, and possibly for much longer, that’s a losing strategy.
Far too much of the City fund management trade is trying to add value and failing.
Index trackers are cheap. Often, they are just better.
