hsbc

Managers are setting up portfolios for a pull-back in equity markets, looking at put options and moving more defensive as several indicators post sell signals.

A former head of HM Revenue & Customs (HMRC) who stepped down after he was accused by MPs of lying has been hired by HSBC to advise on honesty, according to reports.

Nick Paler talks to Cazenove's Robin Minter-Kemp about the challenges and opportunities ahead as he discusses his plans for growing the business in 2013.

CONTRARIAN

Analysts at HSBC have suggested the popularity of balanced funds towards the end of 2012 was due to advisers attempting to maximise commission income before the implementation of new rules following the Retail Distribution Review (RDR).

Fund managers and strategists have begun reducing exposure to sterling, amid fears rising inflation and the threat of a UK downgrade could derail the pound.

HSBC says sterling will weaken this year as it faces a "triple cocktail" of potentially destructive factors from China, the US and the eurozone.

The final cost to banks of the PPI mis-selling scandal could be as much as £25bn, almost double the figure the banks have estimated so far.

The LIBOR-rigging scandal that engulfed the banks in 2012 further dented their badly tarnished reputation and dealt another blow to public confidence, leaving investors uncertain how to play the sector.

Now we have published our final issue of Investment Week for 2012, we reflect on what has been a rollercoaster year characterised by big changes in the fund management industry.