We have now moved into the new tax year 2014/2015 and many clients have already arranged to use up their full ISA allowance of £11,880 with the plan to increase this to the increased maximum of £15,000 from July 2014. Some refer to the investment opportunity presented by this increase in the ISA allowance, along with greater investment flexibility, as the New ISA (NISA). The changes are welcome and some prefer the flexibility of ISAs to save for their retirement, either by using stocks and shares options or cash ISAs or a combination of both, now being able to switch between the two options to suit their needs and attitude to investment risk.
Having recently met with a Bank of England representative, we anticipate the Bank of England base rate (currently 0.5%) to start to rise from around the beginning of 2015.
In past blogs, Chapters Financial has detailed its views on investment allocations and our current preferences. We regularly review our 'house' views on investment areas and classes, maintaining a quarterly Investment Committee to give continuity to our process and client recommendations. You may want to look at our Investment Risk Scale to consider your individual attitude to investment risk.
Current views are as follows:
Positive Allocations
UK Equity Income
UK Equity
US Equity Income
US Equity
Commercial Property
Neutral Allocations
In a change to previous blogs, we continue to watch Europe as an investment area, although are currently not actively recommending this area.*
Corporate Bonds
Negative Allocations
BRICs ( Brazil, Russia, India, China)
* Europe ( see notes above)
Other investment areas are available and will be considered to meet our client requirements.
Past performance is not a guarantee of future performance and changing fund/ asset allocations does not guarantee an increase in performance.
No individual advice has been provided during the course of this blog. If you would like financial advice on the allocation of your funds/ investment strategy, then please contact the Chapters Financial team in Woking (01483 330800) or Guildford (01483 578800).
Keith Churchouse BA Hons FPFS
Director, Chapters Financial Limited
Chartered Financial Planner
Certified Financial Planner
ISO22222 Personal Financial Planner
Chapters Financial Limited is authorised and regulated by the Financial Conduct Authority, number 402899.
Showing posts with label Performance. Show all posts
Showing posts with label Performance. Show all posts
Friday, 2 May 2014
Wednesday, 1 May 2013
Investment Performance & Review 2013
2013 has started with many clients seeing positive returns on their investments, pensions and other holdings. It is always good to report such positive news, with many clients that we have undertaken reviews for being pleased with the progress made. This does not mean that we will not see additional volatility into the future. However is it encouraging to see fund values increasing in many instances.
We gather information on investments from many sources to ensure and maintain a robust advice process. One source is our colleague, Stephen Williams, Managing Director at Cormorant Capital Strategies Ltd, who notes:
Output and employment have sustained a curious push-me-pull-me trend in recent months. The first quarter of 2013 was no different. On the ILO* measure (perhaps the most credible of all the different measures); unemployment has drifted higher from 7.8% of the available workforce to 7.9%. At the same time the year-on-year increase in average earnings continued to slow; it now stands at just 0.8%, a full 2% lower than general inflation. In contrast to this increasingly gloomy backdrop came a surprisingly upbeat initial estimate for economic growth at 0.3% compared with the previous quarter (or 0.6% compared with a year earlier).
According to the Office for National Statistics the first quarter, it seems, was witness to a higher rate of growth than most had come to expect. Sensible observers were expecting a marginal gain (or decline) in the order of 0.1% to 0.2%. Both the Bank of England and the Office for Budget Responsibility were predicting that a triple-dip recession would be narrowly avoided. It was broad-based expansion in the service sector that led the growth, again (0.6% contributing 0.5%). Meanwhile production was flat and construction contracted, again (-2.5% contributing -0.2%).
Of course, that we describe growth in the region of 0.3% as ‘upbeat’ is testament to the duration of the current economic malaise. A full five years on, GDP remains 2.6% below the pre-recession level. Nevertheless, there are positive signs; equity markets are buoyant and eased credit conditions has inflated house prices a little. But both of these will need to be sustained if, in the absence of a sudden and somewhat unlikely rebalanced economy, we are to see any kind of momentum toward a real recovery.
Stephen Williams
Managing Director
Cormorant Capital Strategies Ltd
*International Labour Organization
The team at Chapters Financial has spent much time over the last years with existing clients and new enquirers viewing existing holdings and making changes where appropriate to meet both their attitude to investment risk and the objective of their plan, such as capital growth or income.
If you would welcome a review then please let us know and we can arrange to meet at a suitable time to undertake any agreed changes that may be appropriate in your circumstances.
Past performance is not a guarantee of future performance. Fund values can fall as well as rise.
This Blog provides general information and should not be used as individual advice.
If you, your business or charity would like to receive individual advice on the issues of investment or pension planning , then please contact the team at Chapters Financial Limited on 01483 578800.
Keith G. Churchouse FPFS
ISO22222 Certified Financial Planner
Director and Financial Planner
Chapters Financial Limited is authorised and regulated by the Financial Conduct Authority, number 402899.
The Financial Conduct Authority does not regulate Tax advice
We gather information on investments from many sources to ensure and maintain a robust advice process. One source is our colleague, Stephen Williams, Managing Director at Cormorant Capital Strategies Ltd, who notes:
Output and employment have sustained a curious push-me-pull-me trend in recent months. The first quarter of 2013 was no different. On the ILO* measure (perhaps the most credible of all the different measures); unemployment has drifted higher from 7.8% of the available workforce to 7.9%. At the same time the year-on-year increase in average earnings continued to slow; it now stands at just 0.8%, a full 2% lower than general inflation. In contrast to this increasingly gloomy backdrop came a surprisingly upbeat initial estimate for economic growth at 0.3% compared with the previous quarter (or 0.6% compared with a year earlier).
According to the Office for National Statistics the first quarter, it seems, was witness to a higher rate of growth than most had come to expect. Sensible observers were expecting a marginal gain (or decline) in the order of 0.1% to 0.2%. Both the Bank of England and the Office for Budget Responsibility were predicting that a triple-dip recession would be narrowly avoided. It was broad-based expansion in the service sector that led the growth, again (0.6% contributing 0.5%). Meanwhile production was flat and construction contracted, again (-2.5% contributing -0.2%).
Of course, that we describe growth in the region of 0.3% as ‘upbeat’ is testament to the duration of the current economic malaise. A full five years on, GDP remains 2.6% below the pre-recession level. Nevertheless, there are positive signs; equity markets are buoyant and eased credit conditions has inflated house prices a little. But both of these will need to be sustained if, in the absence of a sudden and somewhat unlikely rebalanced economy, we are to see any kind of momentum toward a real recovery.
Stephen Williams
Managing Director
Cormorant Capital Strategies Ltd
*International Labour Organization
The team at Chapters Financial has spent much time over the last years with existing clients and new enquirers viewing existing holdings and making changes where appropriate to meet both their attitude to investment risk and the objective of their plan, such as capital growth or income.
If you would welcome a review then please let us know and we can arrange to meet at a suitable time to undertake any agreed changes that may be appropriate in your circumstances.
Past performance is not a guarantee of future performance. Fund values can fall as well as rise.
This Blog provides general information and should not be used as individual advice.
If you, your business or charity would like to receive individual advice on the issues of investment or pension planning , then please contact the team at Chapters Financial Limited on 01483 578800.
Keith G. Churchouse FPFS
ISO22222 Certified Financial Planner
Director and Financial Planner
Chapters Financial Limited is authorised and regulated by the Financial Conduct Authority, number 402899.
The Financial Conduct Authority does not regulate Tax advice
Thursday, 15 November 2012
Where it stops, nobody knows!
It's been an interesting few weeks in various investment markets. With much optimism in the lead up to the American election and with President Obama safely re-installed into the White House, the hangover from the party seems to have set in. With various hopes and fears once again emerging from Europe, there seem to be many 'jitters' in a few of the major financial indexes. Overall, the markets have remained relatively constant over the last 6 months, and using the example of the FTSE 100 (not always the best measure) as a reasonable UK local market equity index, we can see the results.
We can see that from 01 May 2012, the index stood at 5,812.20 and by 10 November 2012 this had moved to 5,769.70. For additional past reference, the FTSE 100 stood at:
Approximate Figures (Source uk.finance.yahoo.com)
You will note from these results that past performance is no guarantee of future performance and that fund values can fall as well as rise.
I am sure that within the next 4-6 weeks we will see the usual seasonal speculation as to where the FTSE 100 index will be at the end of 2013. I have to admit that I think that 'UK Plc' looks in far better condition, with its various austere fiscal policies, to face the significant and continuing challenges that I believe the global economy has to share with its many contributors over 2013 and beyond. Bearing in mind that the highest peak of the FTSE100 (on 30 December 1999/ 6,930.20 points) was now some 13 years ago (although it got close again to this level in late 2007), it does raise the question as to when the current Index 'value' mould that we have become very accustomed too will be broken, if at all.
Only time will tell, however, it is interesting to note (although not a direct comparison) that the American Dow Jones Index's highest point in past years was 14,164.53 points (09 October 2007) and this was nearly reached again in 2012 (13,610.15 points at 13 October 2012). With the fears of a post-election 'Fiscal Cliff' looming (seems to be the latest buzz phrase) I am pleased to see that this past index high milestone has been approached again in such an economic climate.
Is it time for the UK and its various Indices to do the same. As the title suggests, 'Where it stops.........'
Past performance is not a guarantee of future performance. Fund values can fall as well as rise and are not guaranteed. No individual advice or fund recommendation has been provided in the content of this Blog.
Chapters Financial Limited can help you with your savings and investment allocation and planning.
Keith G Churchouse, Director
Chartered Financial Planner
ISO 22222 Certified Financial Planner
Chapters Financial Limited is authorised and regulated by the Financial Services Authority, number 402899.
We can see that from 01 May 2012, the index stood at 5,812.20 and by 10 November 2012 this had moved to 5,769.70. For additional past reference, the FTSE 100 stood at:
Date |
FTSE 100 Index Value
|
10 November 2011
|
5,444.80
|
10 November 2010
|
5,816.90
|
10 November 2009
|
5,230.50
|
10 November 2008
|
4,403.90
|
You will note from these results that past performance is no guarantee of future performance and that fund values can fall as well as rise.
I am sure that within the next 4-6 weeks we will see the usual seasonal speculation as to where the FTSE 100 index will be at the end of 2013. I have to admit that I think that 'UK Plc' looks in far better condition, with its various austere fiscal policies, to face the significant and continuing challenges that I believe the global economy has to share with its many contributors over 2013 and beyond. Bearing in mind that the highest peak of the FTSE100 (on 30 December 1999/ 6,930.20 points) was now some 13 years ago (although it got close again to this level in late 2007), it does raise the question as to when the current Index 'value' mould that we have become very accustomed too will be broken, if at all.
Only time will tell, however, it is interesting to note (although not a direct comparison) that the American Dow Jones Index's highest point in past years was 14,164.53 points (09 October 2007) and this was nearly reached again in 2012 (13,610.15 points at 13 October 2012). With the fears of a post-election 'Fiscal Cliff' looming (seems to be the latest buzz phrase) I am pleased to see that this past index high milestone has been approached again in such an economic climate.
Is it time for the UK and its various Indices to do the same. As the title suggests, 'Where it stops.........'
Past performance is not a guarantee of future performance. Fund values can fall as well as rise and are not guaranteed. No individual advice or fund recommendation has been provided in the content of this Blog.
Chapters Financial Limited can help you with your savings and investment allocation and planning.
Keith G Churchouse, Director
Chartered Financial Planner
ISO 22222 Certified Financial Planner
Chapters Financial Limited is authorised and regulated by the Financial Services Authority, number 402899.
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