Seminars

The benefits of diversification: lessons from 2008

On Friday 4 December 2009, Fathom Financial Consulting co-hosted a seminar with Gatemore Capital Management to debate 'The benefits of diversification: lessons from 2008'. 

The seminar drew on the insights of a panel of experts to answer the question, has diversification really failed in its objective to protect investors? The panel included:

• Rebecca Driver, Association of British Insurers
• Profesor Andrew Clare, Cass Business School and Fathom Financial Consulting
• Mark Hodgson, Gatemore Capital Management
• Penny Green, SAUL Trustee Company

Published in FT Mandate, Professor Andrew Clare recently argued that "diversification is common sense in that it naturally reduces investment risk, but there is a limit to its benefits". To read the full article, please click here: The best free lunch in town.

Industry stakeholders single out alternative asset classes as their top pick for 2010

• Alternatives set to bounce back: 47% of all respondents said that alternatives – comprising hedge funds and private equity – will be the best performing asset class in 2010. In contrast, 14% of respondents believed that global equities and property would be the best performers next year.

• Inflation a real cause for concern: more than a third (38%) of all respondents judged inflation as being the biggest risk to funding in 2010, compared to 27% who said the equity markets were the biggest menace. Long gilt yields falling (14%) and government intervention (14%) were also considered a hazard.

• The outlook for long gilt yields remains unclear: 22% of all respondents thought that by the end of 2011, long gilt yields will be between 4% and 4.5%; 19% less than 4%; another 19% between 5% and 5.5%. Only 11% said long gilt yields would rise to more than 6%, and 14% believed they will be between 4% and 4.5%, and 14% between 5.5% and 6%.

 The seminar also marked the launch of Fathom Financial Consulting's new advisory service, Fathom Pensions.