Currency risk is often overlooked, but for UK investors with global portfolios, it matters — especially in bonds.

For fixed income, hedging is essential. Currency volatility adds equity-like risk to what should be a stable part of your portfolio. And there’s no long-term reward for taking it.

Equities are different. Currency moves and stock returns are weakly correlated, and equity volatility typically dominates. Hedging equity exposure often adds complexity with little benefit.

Rule of thumb? Hedge your bonds, not your equities.

Strategic and tactical asset allocation may sound sophisticated, but often leads to sub-optimal investment outcomes—particularly when used by in-house investment managers at financial advisory firms. These strategies hinge on predicting market movements—a near impossible task. Worse yet, they can sometimes be a convenient way to justify unnecessary fund switches and rack up extra fees. The smarter approach? Stick to evidence-based strategies like market cap weighting and systematic factor investing. These are methods grounded in research rather than speculation.

Cryptocurrencies are often spoken about as the next big thing in investing, promising revolutionary change and financial freedom. Yet, they lack fundamental value, relying solely on market sentiment. In this post, we explore why Bitcoin and other cryptocurrencies are more like speculative gambles than reliable investments, drawing parallels with traditional assets like stocks, bonds, and commercial property.

Stock and fund picking can be a costly distraction for financial advisers, often leading to suboptimal client outcomes. Instead of fixating on selecting the next outperforming asset, advisers would better serve their clients by dedicating time to comprehensive financial planning. This approach lends itself to financial security and aligns with evidence-based strategies that prioritise long-term success.