In recent years the rise in prominence of smaller, typically seed stage focused venture funds has transformed the landscape of early stage investing. At the same time, mobile innovation has spawned new business models that in a short period of time can achieve great scale and reach.
For decades, families seeking advice on how to invest their hard-earned capital were forced to endure “beauty contests” where potential advisors attempted to demonstrate their supposedly-unique skills and/or access to information.
Prior to the Brexit vote on June 23, financial markets were relatively strong. The S&P 500 index was trading just under its all-time high and the British pound was at the highest level of the year.
There were two distinct periods during the quarter divided by sentiment and performance. The start of the year through February 11 was a “risk-off” period of negative sentiment and sharp declines across asset classes and countries.
Bond markets globally were off to a slow start at the beginning of the quarter, but began to drive higher as the Brexit vote approached and eventually jumped on the result as investors sought out safe-haven assets.
The 'leave' campaign, a victory for the pro-Brexit voters, was quite a surprise to markets and the world. The United Kingdom, based on a referendum of all eligible citizens, voted to leave the European Union (EU) and became the first country to do so.
UK’s vote to leave the EU has escorted in what could be a long period of uncertainty and volatility in the market. There is also skepticism about the recent, liquidity-driven bounce in risky assets.
Looking back over the first half of 2016, the FTSE 100 index increased by 6.7 percent when dividend payments are taken into account. However, this positive performance disguises the substantial equity market volatility seen in February, and again following the Brexit decision in June.
Impact investing has gone mainstream. The Employee Retirement Income Security Act of 1974 (ERISA), which regulates single-employer and multi-employer private pension plans, now officially agrees.
