July 2021 Investment Review

I am a little late in bringing you my review of the second quarter of 2021.  It is because I decided to change the format somewhat and report the managed portfolio results on a fixed page, which will then be updated each quarter. As always the task took more time than I thought, but hopefully you will find the presentation more comprehensive.

I have shown the long term results for each portfolio that we manage. This gives you the chance to not only see how your portfolio has grown, but you can also see how each portfolio has performed that other clients are invested in. I have included the investment goal of each portfolio that we manage, so you can decide if you would like to invest in any additional portfolios along with your present portfolio.

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Goodhart’s Law

Investment Advisers will soon be mandated to take Environmental, Social and Governance factors into account when recommending investments. I will tell you now, the rules will prove to be as expensive to comply with, as they will be unfit for purpose. The new rules will fall well short of what the legislation is trying to achieve. Currently although there are many ESG measures out there, we have found no ESG benchmarks that we can trust and that are not open to abuse.

When a measure becomes a target, it ceases to be a good measure.

Charles Goodhart

Have you bought an ESG friendly portfolio or fund already? Whoever sold it to you probably has never heard of Goodhart’s Law. They haven’t considered that the measures they apply have been gamed.

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