Winter 2009
Helping you to realise your financial goals.
Overall, we can draw encouragement that we are an island race that has
historically proved adaptable to adverse conditions. Already there are signs of
some new opportunities arising out of the wreckage and here at Bestinvest you can
be assured that we are striving to help you rebuild your wealth. Read more »
John Spiers, CEO
Articles
By John Spiers
Although we correctly predicted in October 2006 that securitised debt would lead to large losses for banks and hedge funds, the impact was far greater than I had envisaged.
Market Review
The roots of last year’s extraordinary events stretch back almost a decade; grounded in the lax lending that followed the last bear market of 2000-03 and the repeal of the Glass-Steagall Act in 1999.
Alternative investments
2008 was the worst year in history for the hedge fund industry. Despite promises of generating absolute returns in all market scenarios, the average return was a loss of more than 18%.
Emerging markets
Chinese and Indian equity markets have deteriorated rapidly since their 2007 peak. Despite the credit crunch’s impact on growth and the potential increased political risks, there is a
long-term growth story for both countries.
Market views
The main impacts of a tumultuous 2008 will be felt throughout 2009. Consumers and businesses are building savings as a precaution in these uncertain times.
Fund research
There is no hiding the fact that market conditions over the last 18 months have proved difficult for actively managed funds.
Home watch
With the base rate at a record low, it seems like good news for borrowers,but the mortgage market is dominated by four lenders. This lack of competition may prevent actual mortgage rates reaching the same low point.
Retirement planning
The announcement in the Pre-Budget Report that both the Lifetime Allowance (LTA) and the Annual Allowance (AA) will be frozen at 2010/2011 levels for five years until April 2016
represents a further snipping away at the pension benefits of individuals who the Government considers to be ‘fat cats’.
Fund manager news
Recent fund news has been dominated by uncertainty over New Star Asset Management’s future. Already suffering from investor outflows following poor performance on some funds, 2008’s stock market falls led to failure servicing its large debt obligations.
ISA review
As always, tax efficiency remains an important weapon in the fight for higher returns, but the recent volatility of equity markets means more people
will be turning to Cash ISAs before the end of the 2008/2009 tax year.
ISA review
ISA investment is more relevant than ever these days because, with the UK Government having borrowed billions to reflate the UK economy, we will be paying more tax in future.