A number of clients have expressed concern as to the recent market volatility we have seen. I have therefore approached one of Standard Life's leading fund managers for an update as to future prospects in the markets :-
Recent performance
UK stocks were volatile, suffering significant declines through July but recovering most of this fall in August and September. Difficulties in the US housing market raised fears about the health of the US economy and the effect this could have on the UK and overall global economy. High yields bonds were caught up in a credit squeeze in the third quarter and experienced volatility as a result. However, later in the quarter, the Federal Reserve cut interest rates by 0.5% and a degree of confidence started to return to the market. The commercial property market continued to slow over the third quarter, with a further reduction in the level of total returns.
During the period, we took advantage of market volatility and new cash into the Fund to add to favoured stock positions. We started a new position in specialist lender Intermediate Capital. It is taking advantage of the current credit worries by pushing up prices as mainstream banks tighten their lending criteria. We have benefited in recent months from an underweight position in bonds issued by banks and our long duration position in a risk averse market. We bought bonds issued by South African retailer Edgars at a substantial discount to the price at which they were issued two months previously.
We remain positive on the outlook for the UK stock market. Valuations remain low relative to both history and bonds, and are supported by free cashflow, dividend yield and corporate activity. Fundamentals in the high yield market remain sound. Bond investors will continue to monitor US and European economic data for signs that the slowdown in the US housing market, and the associated disruption of credit markets, may be increasing the risks of a recession. While there are short-term concerns over commercial property, the asset class should continue to deliver robust returns over the longer term. Property fundamentals, such as strong tenant demand, strong rental growth and a robust economy, remain in place and will continue to drive the market going forward.
Basically, "don't panic Mr Mainwaring!" Whilst recent ups and downs have been worrying, there has been a lot of bad news in a very short period of time (oil price records, government instability and errors etc) - once this settles down the markets should pick up nicely.
Thursday, 29 November 2007
Tuesday, 13 November 2007
Zen offers support to FSA education initiative
Zen Financial Services has committed its support to a major financial
capability programme from the Financial Services Authority
(FSA). Mike Pendergast, IFA and owner of Zen, will act on a
voluntary basis for the FSA in delivering a seminar
programme to employees throughout the North West and Midlands.
The workplace initiative, Make the Most of Your Money, was
launched last year and is part of the FSA’s commitment to
improve levels of financial capability across the UK.
Other priority areas include work in schools, places of higher
and further education, and with young adults and new and expectant
parents, via their Moneymadeclear website and online tools. By
March 2011 the FSA hopes to have reached 10 million people.
For more information, email workplace.team@fsa.gov.uk or visit
http://www.fsa.gov.uk/financial_capability/story/workplace/index.
html.
capability programme from the Financial Services Authority
(FSA). Mike Pendergast, IFA and owner of Zen, will act on a
voluntary basis for the FSA in delivering a seminar
programme to employees throughout the North West and Midlands.
The workplace initiative, Make the Most of Your Money, was
launched last year and is part of the FSA’s commitment to
improve levels of financial capability across the UK.
Other priority areas include work in schools, places of higher
and further education, and with young adults and new and expectant
parents, via their Moneymadeclear website and online tools. By
March 2011 the FSA hopes to have reached 10 million people.
For more information, email workplace.team@fsa.gov.uk or visit
http://www.fsa.gov.uk/financial_capability/story/workplace/index.
html.
Friday, 9 November 2007
Wednesday, 31 October 2007
We can revive your pension!
We have lost count of the number of clients who have old pensions sitting around in their filing cabinet - they get a statement every year but have no idea where the funds are invested, how they are doing, how much they are being charged or what they can expect to receive in retirement. if this sounds like you, we can help :-
We will give your pension a boost, and ensure you know it is invested correctly and what you can expect from it when you retire using the PENSION REVIVAL PROCESS :-
1 - We obtain all the details of your old pension plan, including fund details, charges and other relevant details.
2 - We complete a risk profiling exercise with you, to pinpoint what combination of risk and reward is right for you.
3 - We match your risk profile to pension funds which are right for your requirements, and also match the time you have left to retirement, giving you the best chance of a good return whilst managing risk. This may be done with your existing provider or, if they are not competitive or do not provide the required choice of funds, we may suggest an alternative provider.
4 - We then review your pension with you regularly, so there are no nasty shocks - you know exactly what you can expect to receive when you retire and can therefore plan ahead in an informed way.
Contact us now on 01270 567709, or via info@zenfinancial.net, and give your pension the kiss of life !
We will give your pension a boost, and ensure you know it is invested correctly and what you can expect from it when you retire using the PENSION REVIVAL PROCESS :-
1 - We obtain all the details of your old pension plan, including fund details, charges and other relevant details.
2 - We complete a risk profiling exercise with you, to pinpoint what combination of risk and reward is right for you.
3 - We match your risk profile to pension funds which are right for your requirements, and also match the time you have left to retirement, giving you the best chance of a good return whilst managing risk. This may be done with your existing provider or, if they are not competitive or do not provide the required choice of funds, we may suggest an alternative provider.
4 - We then review your pension with you regularly, so there are no nasty shocks - you know exactly what you can expect to receive when you retire and can therefore plan ahead in an informed way.
Contact us now on 01270 567709, or via info@zenfinancial.net, and give your pension the kiss of life !
Wednesday, 10 October 2007
Zen in the press ! Sep 28 - Oct 1 2007
Shared appreciation mortgages give property ladder boost
Shared appreciation mortgages can give step up says expert
Bad credit mortgages still available
Adverse credit mortgages are rarely refused
SAMS helpful to first time buyers
Bad credit doesn't mean no mortgage offer
Shared appreciation can help struggling buyers
Invest News
Shared appreciation mortgage could give first step on property ladder
Tighter lending could benefit the market
Shared appreciation mortgages can give step up says expert
Bad credit mortgages still available
Adverse credit mortgages are rarely refused
SAMS helpful to first time buyers
Bad credit doesn't mean no mortgage offer
Shared appreciation can help struggling buyers
Invest News
Shared appreciation mortgage could give first step on property ladder
Tighter lending could benefit the market
Tuesday, 18 September 2007
What protection do savers have ?
So the Government have promised all existing Northern Rock savers that their money is safe. But what protection do savers have in any case?
The Financial Services Compensation Scheme covers 100% of the first £30,000 and 90% of the next £20,000 of an investment or savings plan if the firm who provided it is unable to meet its obligations. However 'deposits', i.e bank and building society accounts, are only covered for 100% of the first £2,000 and 90% of the next £33,000.
There are rules though, and some investors/depositors are not covered - the full FAQ is available here : http://www.fscs.org.uk/consumer/faqs/.
So if you have £75,000 in a savings account and the bank goes bump, assuming you meet all the criteria you would be covered but only for £31,700.
Similar protection schemes cover other types of financial products, including the Policyholders Protection Act.
It is very unlikely in any case that the Government would allow Northern Rock to fold - this would destabilise the banking system and cause havoc with the economy. One investor was quoted as saying that he didn;t trust the Government promise, and was therefore withdrawing his funds and reinvesting them into gilts (which are Government stock, and certainly aren't as safe as a bank account!)
To get back to basics, any saver or investor should be aware of the risks involved with any investment - even a savings account can lose you money if it is paying a rate if interest which is less than the rate of inflation (and it's surprising how many are!). If prices are rising by 3% and you are only receiving 2% interest, the net result is that your money is falling in value by 1% per annum. Put it under the bed, and you lose 3% per annum in this scenario!
Our advice is always to assess the level of risk you are prepared to take with funds, via a risk profiling exercise, and then take advice as to an investment which matches this level of risk. We can assess risk, make recommendations and manage funds on an ongoing basis - better than sleepless nights!
The Financial Services Compensation Scheme covers 100% of the first £30,000 and 90% of the next £20,000 of an investment or savings plan if the firm who provided it is unable to meet its obligations. However 'deposits', i.e bank and building society accounts, are only covered for 100% of the first £2,000 and 90% of the next £33,000.
There are rules though, and some investors/depositors are not covered - the full FAQ is available here : http://www.fscs.org.uk/consumer/faqs/.
So if you have £75,000 in a savings account and the bank goes bump, assuming you meet all the criteria you would be covered but only for £31,700.
Similar protection schemes cover other types of financial products, including the Policyholders Protection Act.
It is very unlikely in any case that the Government would allow Northern Rock to fold - this would destabilise the banking system and cause havoc with the economy. One investor was quoted as saying that he didn;t trust the Government promise, and was therefore withdrawing his funds and reinvesting them into gilts (which are Government stock, and certainly aren't as safe as a bank account!)
To get back to basics, any saver or investor should be aware of the risks involved with any investment - even a savings account can lose you money if it is paying a rate if interest which is less than the rate of inflation (and it's surprising how many are!). If prices are rising by 3% and you are only receiving 2% interest, the net result is that your money is falling in value by 1% per annum. Put it under the bed, and you lose 3% per annum in this scenario!
Our advice is always to assess the level of risk you are prepared to take with funds, via a risk profiling exercise, and then take advice as to an investment which matches this level of risk. We can assess risk, make recommendations and manage funds on an ongoing basis - better than sleepless nights!
Monday, 17 September 2007
Northern Rocky!
Current update below! Northern Rock are not a company we have recommended to our clients in the past, mainly due to their tendency to charge high fees and large redemption penalties on mortgages, but it shows what media hype can do to a company, even one as well known as Northern Rock. Realistically, savers are panicking when there is very little reason to do so - Northern Rock are in a similar position to Barclays who also had to go to the Bank Of England for emergency funding just a few weeks ago - but the fact that Northern Rock's situation has been massively overhyped as a sign of impending doom seems to have meant that it will, untimately, be forced to sell up or ship out.
"Britain's fifth largest mortgage lender was today deluged by panicking savers for a third day as they lined up at Northern Rock branches to empty their accounts after the bank opened early to accommodate the anticipated rush. An estimated £1.5 billion to £2 billion was withdrawn by Northern Rock savers on Friday and Saturday after the mortgage lender was forced to go to the Bank of England to seek emergency funding.
The crisis-hit lender's share price plummeted by 36.93 per cent today despite the bank's embattled chief executive, Adam Applegarth, attempting to reassure customers and investors the bank is a "viable" business.
It has also emerged that Northern Rock had asked Lloyds TSB to acquire the bank but that the deal was blocked by the Bank of England and the Financial Services Authority (FSA). There was speculation today that National Australia Bank was another possible rescuer."
"Britain's fifth largest mortgage lender was today deluged by panicking savers for a third day as they lined up at Northern Rock branches to empty their accounts after the bank opened early to accommodate the anticipated rush. An estimated £1.5 billion to £2 billion was withdrawn by Northern Rock savers on Friday and Saturday after the mortgage lender was forced to go to the Bank of England to seek emergency funding.
The crisis-hit lender's share price plummeted by 36.93 per cent today despite the bank's embattled chief executive, Adam Applegarth, attempting to reassure customers and investors the bank is a "viable" business.
It has also emerged that Northern Rock had asked Lloyds TSB to acquire the bank but that the deal was blocked by the Bank of England and the Financial Services Authority (FSA). There was speculation today that National Australia Bank was another possible rescuer."
Tuesday, 11 September 2007
www.pensionadvice.net
Zen are pleased to announce the launch of our new website - http://www.pensionadvice.net/ - designed to allow people to have their pension questions answered easily and quickly by a qualified IFA.
Rather than give bare information which may or may not be relevant to your particular circumstances, pensionadvice.net enables you to get a specific answer to your specific question, from a real life Independent Financial Adviser (IFA) within 24 hours of your query being received.
Our response will give you factual information regarding your query, but we cannot give specific recommendations without further information. If we feel that you would benefit from further specific advice, we will suggest a meeting with one of our Independent Financial Advisers who can go into greater detail regarding your pension arrangements.
Visit http://www.pensionadvice.net/ for more information and ask us a pension question !
Rather than give bare information which may or may not be relevant to your particular circumstances, pensionadvice.net enables you to get a specific answer to your specific question, from a real life Independent Financial Adviser (IFA) within 24 hours of your query being received.
Our response will give you factual information regarding your query, but we cannot give specific recommendations without further information. If we feel that you would benefit from further specific advice, we will suggest a meeting with one of our Independent Financial Advisers who can go into greater detail regarding your pension arrangements.
Visit http://www.pensionadvice.net/ for more information and ask us a pension question !
Stupid Dog!
Well, I spent yesterday evening at the Vets whilst the vetinary surgeon on duty tried valiantly to remove the contents of my dog's stomach before the large bar of Exlax he had eaten not half an hour earlier worked it's magic.
Luckily she managed to complete the task in time and the dog emerged looking very sorry for himself but thankfully avoiding the inevitable consequences which would have ensued had we not got there in time! Thank goodness for slow acting laxative ;-)
Whilst in the waiting room I was intrigued to hear another canine patients 'mummy' (as she referred to herself) list the various treatments she treated her dog to, including Reiki healing to mention but one! I am always amazed by the things people spend money on, and this one must be near the top of the list - the IFA in me wondered whether she had sufficient savings for her retirement whilst she was having her dog's head examined.
Seriously though, vets fees are rather steep - it cost £50 to vacate the stomach of a Jack Russell (but worth it rather than doing the deed at home!) and, having only recently insured the little fella, it made me regret not covering him earlier via pet insurance, which is after all not that expensive.
Oh, and the drawer containing medicinal items will be kept firmly shut in future....
Luckily she managed to complete the task in time and the dog emerged looking very sorry for himself but thankfully avoiding the inevitable consequences which would have ensued had we not got there in time! Thank goodness for slow acting laxative ;-)
Whilst in the waiting room I was intrigued to hear another canine patients 'mummy' (as she referred to herself) list the various treatments she treated her dog to, including Reiki healing to mention but one! I am always amazed by the things people spend money on, and this one must be near the top of the list - the IFA in me wondered whether she had sufficient savings for her retirement whilst she was having her dog's head examined.
Seriously though, vets fees are rather steep - it cost £50 to vacate the stomach of a Jack Russell (but worth it rather than doing the deed at home!) and, having only recently insured the little fella, it made me regret not covering him earlier via pet insurance, which is after all not that expensive.
Oh, and the drawer containing medicinal items will be kept firmly shut in future....
Monday, 10 September 2007
Market movements and risk profiling
We have had a few comments in the last couple of weeks concerning the recent market volatility and I have thankfully been able to put clients minds at rest. The extent to which you may have been affected by the recent ups and downs really depends upon whether your investment was suitable for you in the first place and whether it is being managed professionally.
We find that many new clients have the odd pension or PEP sitting around, and nine times out of ten the moneys are invested in a ubiquitius 'Managed' fund. 100% of the money in one fund - and this is when clients get hit by market movements.
Any investment should suit a clients' risk profile and be diversified, whether it is a £1 million portfolio or a £20pm personal pension. With all new clients we carry out a full risk profiling exercise and then suggest funds which suit both the results of this exercise and also the clients age and timeline. That way we can be sure that any market 'blips' such as the recent correction do not affect clients more than they would expect to be affected!
We find that many new clients have the odd pension or PEP sitting around, and nine times out of ten the moneys are invested in a ubiquitius 'Managed' fund. 100% of the money in one fund - and this is when clients get hit by market movements.
Any investment should suit a clients' risk profile and be diversified, whether it is a £1 million portfolio or a £20pm personal pension. With all new clients we carry out a full risk profiling exercise and then suggest funds which suit both the results of this exercise and also the clients age and timeline. That way we can be sure that any market 'blips' such as the recent correction do not affect clients more than they would expect to be affected!
Sunday, 9 September 2007
Zen launches 'Complete Financial Security' service
Clients of Zen Financial Services can now rest assured that their finances are in the best possible shape following the launch of Zen's 'Complete Financial Security' service.
The 'CFS' service initially involves a complete and detailed review of clients' existing financial arrangements. Details are taken of all financial plans and products currently in place; these plans are then reviewed and, if necessary, restructured to ensure they are providing the right benefits at the right cost.
A full risk profiling exercise is also carried out to ensure that any investment-based financial arrangements in place are well-suited to the clients individual tolerance of investment risk.
Following the production of a full initial report, further half yearly meetings take place to ensure that the plans and arrangements agreed upon remain suitable.
For more information contact Zen Financial Services at info@zenfinancial.net or visit www.zenfinancial.net.
The 'CFS' service initially involves a complete and detailed review of clients' existing financial arrangements. Details are taken of all financial plans and products currently in place; these plans are then reviewed and, if necessary, restructured to ensure they are providing the right benefits at the right cost.
A full risk profiling exercise is also carried out to ensure that any investment-based financial arrangements in place are well-suited to the clients individual tolerance of investment risk.
Following the production of a full initial report, further half yearly meetings take place to ensure that the plans and arrangements agreed upon remain suitable.
For more information contact Zen Financial Services at info@zenfinancial.net or visit www.zenfinancial.net.
Return of the blog...
Welcome to the resurrected Zen Financial Services blog.
Look forward to lots of information which will help you manage your finances!
Should you any questions re any of our posts, please feel free to get in touch via info@zenfinancial.net.
Look forward to lots of information which will help you manage your finances!
Should you any questions re any of our posts, please feel free to get in touch via info@zenfinancial.net.
Subscribe to:
Posts (Atom)
