As the year draws to a close, Spy and all his colleagues wish our readers a very Merry Christmas and a prosperous New Year. As has become our tradition, this last column of the year highlights the best of the “premiums” we have seen dished out to the industry during the past twelve months. There are myriad choices, as one can see from the picture below.
Voluble debate was held over wine, beer and some dubious pink cocktails at the staff Christmas party as to which was the best, most useful and most likely to keep a brand close to an industry partner’s hand.
For Spy’s vote, (and Spy gets the deciding vote) the tog bag produced by M&G is this year’s winner. M&G ensured the bag was of a decent quality and Spy posits it will be properly used and remembered by those who received them. For the record, Spy also loves a good quality coffee or water holder and there were a few of those on offer.
Spy and his editorial colleagues have been making another collection throughout the year. The team has been cataloguing phrases used most frequently by the industry in interviews, press releases and market updates that are, at best, clichés and, at worst, rather meaningless nonsense. Spy shares these now in the rather vain hope that 2020 will be filled with new and witty explanations for fund and market performance.
Here are the Top Ten:
10. “We are selective”
A wonderfully meaningless phrase that is perpetually among the most used.
9. FMPs
Neither a cliché nor meaningless nonsense, but nonetheless, exceedingly boring products with high net inflows, launched by a multitude of fund groups.
8. “Tactically we’re overweight A (non-risk asset class), strategically we’re overweight B (risk asset class)”
Which means basically almost all in US Treasuries and cash.
7. “Diversification is the key”
Useful. Obvious advice that doesn’t sound like you’re stating obvious advice.
6. “Due to accommodative central bank policies”
Versatile. Can be used either for blame or faint praise.
5. “Safe haven”
This redundancy is often mentioned in the same breath as “defensive”.
4. “The US-China trade war”
The word “war” subsequently fizzling out into “conflict” then “dispute” then “tensions”. Often accompanied by “material escalation” or “we prefer markets/companies/sectors less exposed to trade tensions”
3. ESG
Heard far more in 2019 than in previous years, but more as an assertion of virtue than nuts-and-bolts explanation.
2. “Disruption”
Guaranteed to be mentioned when discussing tech-themed funds – and typically in conjunction with “innovation”.
And in the number one spot…
1.“Uncertainty”
Often prefaced by “market” or “too much”. The most worn-out word in finance. Unlimited utility.
And so, until 2020 when Spy will duel with the vagaries of the market over large quantities of alcohol, all over again…
