Independent Financial Advisors like Enable acknowledge the fact that with continued equity market volatility many of the traditional ‘safe haven’ investment options like government bonds are offering historically low yields, so many investors are looking for alternatives.
Recent figures from the Investment Management Association for March however showed fixed income was the most popular asset class as a whole for the seventh month in a row with net retail sales of £660m. Also, the IMA Sterling Strategic Bond sector was the best selling of all IMA sectors for the month.
The sector, which contains funds that invest at least 80 per cent of their assets in sterling denominated fixed interest securities - or securities that are hedged back to Sterling - recorded net retail sales of £366m, the highest figure since April 2011, and significantly above the monthly average for the previous 12 months of £211m. Investor inflows into these funds mean it is the second largest fixed income sector at £25.6bn, second only to the £52.8bn Sterling Corporate Bond sector.
Andrew Sutherland, head of credit and aggregate at Standard Life Investments and manager of the £92.1m Standard Life Investments Strategic Bond fund, says most people think of bonds as having very few differences but he adds: “There’s a vast amount of difference in terms of risk and performance in bonds. You’ve got high yield which is very cyclical and high yielding, but you’ve also got your government bonds and things like index-linked and investment grade corporate bonds. So there’s quite a lot of variety and they all do different things at different times.”
Strategic bond management with Enable’s IFA’s could help you make the most of your wealth.
Wednesday, 16 May 2012
Wednesday, 9 May 2012
Enable train for their 5 countries in 5 days challenge
South Asian millionaires increasing - do you need to revise your investment options?
A BRICdata report has recently suggested that the wealth management market for South Asian millionaires living abroad will increase in the next four years. As many as 21.6 million persons of Indian origin (PIO) and non-resident Indians (NRI) are currently living overseas, with the largest proportion of millionaires residing in the US. This is followed by the UK, the United Arab Emirates, Canada and Hong Kong.
The compound annual growth rate (CAGR) of the wealth management market for NRI millionaires living abroad rose to 9.4 per cent over the 2007-2011 study period. BRICdata also expects the total wealth of these individuals to increase by another 6.9 per cent by 2016.
The number of non-resident Pakistanis (NRP) living abroad reached eight million last year, according to the report, with the majority of millionaires living in the UK, followed by United States, the Persian Gulf and Canada. The Persian Gulf counties also hold the largest number of Bangladeshi millionaires, with 5.4 million non-resident Bangladeshis (NRB) currently live away from their home country. With 2.5 million persons of Sri Lankan origin and non-resident Sri Lankans (NRSLs) living abroad last year, Singapore had the highest proportion of millionaires.
It would seem that the South Asian markets are serving their entrepreneur’s well. If your wealth needs managing the Asian markets will probably prove vital for future growth. Enables IFA’s are always happy to talk through your investment options.
It would seem that the South Asian markets are serving their entrepreneur’s well. If your wealth needs managing the Asian markets will probably prove vital for future growth. Enables IFA’s are always happy to talk through your investment options.
Wealth Management - Fit for fulfilling your potential?
Part of any rounded picture in life is your health - key to any Wealth Management strategy is how you want to live your life. In a fit of madness one of our team at Enable decided to join the Isabel Hospice team and cycle 5 Countries in 5 days (500miles!!). The event is taking place from the 12th to the 17th of June 2012 in which time you will be able to witness a middle aged, balding, overweight IFA, passing through the UK, France, Belgium, Germany and ending in Holland.
Providing for the end of your life is vital and Hospices provide the ultimate place of dignity to end your days which is why they are so vital to fund. The Isabel Hospice was founded in 1982 by a number of dedicated people inspired by Isabel Last who herself had cancer. It was registered as a charity in 1983 and works throughout the eastern Herts area covered by Broxbourne Borough Council, East Herts District Council and Welwyn/Hatfield Council. The philosophy of the Hospice has always been to affirm the uniqueness of the individual and to focus on the highest possible quality of life for each patient in our care. Isabel Hospice is an independent body and is supported mainly by donations from the public. All care given by the Hospice is free to their patients. Part of living is giving and Enable are proud to have the opportunity to raise funds for such an important organisation. If you want to support Mike just follow his fundraising link.
Providing for the end of your life is vital and Hospices provide the ultimate place of dignity to end your days which is why they are so vital to fund. The Isabel Hospice was founded in 1982 by a number of dedicated people inspired by Isabel Last who herself had cancer. It was registered as a charity in 1983 and works throughout the eastern Herts area covered by Broxbourne Borough Council, East Herts District Council and Welwyn/Hatfield Council. The philosophy of the Hospice has always been to affirm the uniqueness of the individual and to focus on the highest possible quality of life for each patient in our care. Isabel Hospice is an independent body and is supported mainly by donations from the public. All care given by the Hospice is free to their patients. Part of living is giving and Enable are proud to have the opportunity to raise funds for such an important organisation. If you want to support Mike just follow his fundraising link.
The Secret Of Long-Term Financial Success
As Independent Financial Advisors, Wealth Management is key to our activities at Enable. As with all other IFA’s we are always looking for the best way to make returns over the medium term. At Enable we always advocate diversity and learning form others success and mistakes. One fund manager who also prefers not to put all her eggs in one basket is Margaret Lawson, co-fund manager of the SVM UK Growth Fund, a 12-year-old portfolio.
Lawson has seen the fund endure a difficult 2011, when it fell 8.2 per cent (A share class), falling behind the FTSE All-Share Index of UK stocks by 4.7 per cent, but over the longer term, this is a strong fund. Since its launch in March 2000, the fund has delivered a cumulative performance of 74.8 per cent, beating the index by 44.6 per cent. (Lipper data at 29 February, 2012.)
One of the “unique selling points” of a fund like this is how its managers divide it into three categories: its “core” holdings, “tactical” holdings and “alpha kickers”. A “core” segment holds the low-risk, robust selection of stocks that are rotated infrequently; a “tactical” segment contains stocks that are chosen for their exposure to shorter-term trends, such as changes in the economic cycle, and “alpha kicker” segment, which gets its returns from firms undergoing significant change and where shares often trade at a discount and offer potentially large returns.
Enable can see the benefit of being able to adjust the share that these three segments have of the total fund so that performance can be maintained and losses curbed in different economic conditions: recession, strong growth or sluggish growth, our IFA’s are always available to discuss your Wealth Management strategies.
Lawson has seen the fund endure a difficult 2011, when it fell 8.2 per cent (A share class), falling behind the FTSE All-Share Index of UK stocks by 4.7 per cent, but over the longer term, this is a strong fund. Since its launch in March 2000, the fund has delivered a cumulative performance of 74.8 per cent, beating the index by 44.6 per cent. (Lipper data at 29 February, 2012.)
One of the “unique selling points” of a fund like this is how its managers divide it into three categories: its “core” holdings, “tactical” holdings and “alpha kickers”. A “core” segment holds the low-risk, robust selection of stocks that are rotated infrequently; a “tactical” segment contains stocks that are chosen for their exposure to shorter-term trends, such as changes in the economic cycle, and “alpha kicker” segment, which gets its returns from firms undergoing significant change and where shares often trade at a discount and offer potentially large returns.
Enable can see the benefit of being able to adjust the share that these three segments have of the total fund so that performance can be maintained and losses curbed in different economic conditions: recession, strong growth or sluggish growth, our IFA’s are always available to discuss your Wealth Management strategies.
Thursday, 26 April 2012
Top financial tax tips for Parents
Remember to take full advantage of whatever opportunities you can to make pension contributions, with pension plans the government contributes whenever you do, by rebating the income tax on your contributions, and try to increase your regular pensions savings as and when you can; or pay in a lump sum after a windfall such as a bonus.
At Enable our IFA’s will always suggest you use as much of your £10,680 ISA allowance as possible before the end of the tax year. ISA’s are a great way to save for your child's wedding or fund university fees. A cash ISA can be earmarked as an emergency fund to help you and your children with more immediate concerns. While an ISA in equity funds can be there for a rainy day and you have the chance of greater tax efficient growth over the longer term.
Enables’ Independent Financial Advisors also like to check to see if you can save on tax by you and your spouse taking a team approach to your Personal Allowance. The amount you can earn tax-free each year is currently £7,475 a person. If you shift assets to the one of you with the lower income, you could pay income tax or capital gains at a lower rate.
Think about the whole family and remember that children have tax-free allowances too and Junior ISAs are now available. Our IFA’s like to help parents make the most of their hard earned cash.
At Enable our IFA’s will always suggest you use as much of your £10,680 ISA allowance as possible before the end of the tax year. ISA’s are a great way to save for your child's wedding or fund university fees. A cash ISA can be earmarked as an emergency fund to help you and your children with more immediate concerns. While an ISA in equity funds can be there for a rainy day and you have the chance of greater tax efficient growth over the longer term.
Enables’ Independent Financial Advisors also like to check to see if you can save on tax by you and your spouse taking a team approach to your Personal Allowance. The amount you can earn tax-free each year is currently £7,475 a person. If you shift assets to the one of you with the lower income, you could pay income tax or capital gains at a lower rate.
Think about the whole family and remember that children have tax-free allowances too and Junior ISAs are now available. Our IFA’s like to help parents make the most of their hard earned cash.
The Cost of Parenting
The average parent is apparently forgoing a pension pot of £38,500 in order to financially support each child who is 18 and over, says some recent research by Standard Life. The research finds that parents are supporting their children post 18 for expenses such as university costs, debts, weddings, house deposits and other general finances.
On average, parents estimate they will invest around £15,490 in each adult child. If this sum was invested into a pension instead, it could provide a pension pot of £38,500 in 20 years year's time for a basic rate tax payer. And for a higher rate tax payer, it could provide a pension pot of £51,380.
Standard Life's John Lawson commented:
"A parent's desire to provide for their children even when they become young adults is increasingly coming at a huge cost to their own future financial security. Our research highlights the significant financial challenges facing parents, whether to secure their long term future or meet their family's immediate needs. The high level of unemployment among young people can only be exacerbating the problem. “
Our Independent Financial Advisors at Enable know how parents can feel as if they have very little choice – so we want to make sure that whatever money you have to save for the future is working as hard as it can.
On average, parents estimate they will invest around £15,490 in each adult child. If this sum was invested into a pension instead, it could provide a pension pot of £38,500 in 20 years year's time for a basic rate tax payer. And for a higher rate tax payer, it could provide a pension pot of £51,380.
Standard Life's John Lawson commented:
"A parent's desire to provide for their children even when they become young adults is increasingly coming at a huge cost to their own future financial security. Our research highlights the significant financial challenges facing parents, whether to secure their long term future or meet their family's immediate needs. The high level of unemployment among young people can only be exacerbating the problem. “
Our Independent Financial Advisors at Enable know how parents can feel as if they have very little choice – so we want to make sure that whatever money you have to save for the future is working as hard as it can.
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