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News Archive 2009

Bank of England - Minutes

Adrian Lowcock 24/12/2009

The minutes of the Monetary Policy Committee (MPC) meeting held on the 10th December were published yesterday.

Socially Responsible Investing – Copenhagen

Adrian Lowcock 18/12/2009

With the Copenhagen talks continuing this week, ethical and environmental issues are becoming topical once again. There can be little doubt reducing carbon emissions has become more important and this is now on the agenda of most major governments.

Gartmore European Selected Opportunities fund – Rating suspended

Adrian Lowcock 17/12/2009

We have suspended our 5 star rating of the Gartmore European Selected Opportunities

Absolute Return Sector – Which funds should you choose?

Adrian Lowcock 11/12/2009

2009 has been characterised by the launch of numerous absolute return funds and as the year the draws to a close we see another new fund joining this sector, the Jupiter Absolute Return fund.

Pre-Budget Report - Overview

Adrian Lowcock 10/12/2009

Darling decided to close a loophole created in his last Budget, to reduce tax relief on salary sacrifice schemes for those earning over £130,000.

Pre-Budget Report – Highlights

Adrian Lowcock 09/12/2009

Below are some of the highlights of Alistair Darling’s Pre-Budget Report

Corporate Bonds – Is it time to sell?

Adrian Lowcock 04/12/2009

This week sales statistics for the unit trust sector were released by the Investment Management Association (IMA). Within the figures the corporate bond sector showed a net out flow of £11.8 million, having been the best selling sector for the last 10 months

Savings rates – Searching through the bad deals.

Mark Lane 04/12/2009

Low interest rates and aggressive monetary stimulus might be beneficial to businesses and consumer spending, but savers appear to be the big losers. Instant Access accounts interest rates are at record lows, yet savers, as illustrated in the chart below, are looking to increase their deposits after years of steady declines

Pensions – Pre-Budget threat?

Adrian Lowcock 03/12/2009

There have been numerous rumours and comments in the press suggesting that the Chancellor may further restrict the tax benefits of pensions in his Pre-Budget Report on 9th December.

Fidelity European - Tim McCarron resigns

Adrian Lowcock 02/12/2009

Fidelity has announced that Tim McCarron has resigned from his position in order to take a sabbatical.

Free Switching for Jupiter Financial Opportunities unit holders

Adrian Lowcock 27/11/2009

Jupiter are launching two new funds on the 14th December; Jupiter Absolute Return and Jupiter International Financials. Both funds will be managed by Philip Gibbs.

Dubai defaults –Markets falter

Adrian Lowcock 27/11/2009

On November 25th 2009, the eve of the Muslim Eid al Adha holiday, Nakheel the Dubai Government linked property developer asked creditors for a freeze on debt payments.

Anthony Bolton – To manage new China fund

Adrian Lowcock 26/11/2009

Today, Fidelity announced that their legendary fund manager, Anthony Bolton, will relocate to Hong Kong to manage a new fund dedicated to investing in China and China related opportunities.

Pre-Budget Report - What can we expect?

Graham Frost 25/11/2009

The UK’s national debt is so massive now that room for manoeuvre on election friendly give- aways (this Government has to call an election by May) is virtually non-existent.

Gartmore - Announces listing plans

Adrian Lowcock 23/11/2009

Gartmore, the fund management group, is to seek a stock market listing before Christmas.

Ventus VCT - Top-up offer for existing shareholders

Adrian Lowcock 20/11/2009

This week, Ventus has announced the launch of a top-up offer that is available to their existing VCT shareholders. The top-up will only be available until Friday 18th December (but may close earlier if the maximum subscription is reached).

Commercial property - Is there still time to invest?

Adrian Lowcock 18/11/2009

Lately, there has been an increase in the amount of press the commercial property sector is getting, with professional commentators falling on either side of the debate.

Personal Balance Sheet - relaunched

Adrian Lowcock 13/11/2009

We have recently relaunched our Personal balance sheet tool. It has a new design making it clear and easier for clients to use (for an example see below). Functionality has been increased, enabling investors to see the profit or loss of their investments.

Meeting the Fed

Graham Frost 13/11/2009

This week I was at the Houses of Parliament for a presentation by Eric Rosengren, President of the Federal Reserve Banks of Boston, USA.

Advance Developing Markets - Moving Offshore

Jane Kotchkina 09/11/2009

Venture Capital Trusts in 2009-10

John Davey 06/11/2009

Perhaps unsurprisingly, the total amount raised through new Venture Capital Trusts (VCT) issues in the 2008-09 tax year was severely down, at just £135m versus the £209m raised in 2007-08. During the falling markets of 2008 and the first quarter of 2009, investors sought liquidity and were reluctant to lock capital away in a VCT, where the minimum holding period to qualify for upfront income tax relief is five years.

Postal Strike

Adrian Lowcock 05/11/2009

The post office and Communications Workers Union have announced there will be no more strikes in 2009.

NS&I’s increased interest rates and the outlook for depositors

Mark Lane 05/11/2009

This week National Savings and Investments (NS&I) announced a substantial increase in the interest rates that they are offering to depositors.

Asset Allocation - Autumn 2009

Nigel Parsons 02/11/2009

Discussions over the shape of the recovery have started to resemble an episode of Countdown, with Vs, Ws and Ls all put forward to explain the likely scenario. Certainly, over recent months we have seen something of a V shaped bounce, as massive fiscal and monetary stimulus has delivered rising economic indicators and better than expected corporate profits.

Over £13 billion in dog funds

Adrian Lowcock 02/11/2009

Twice a year we ask our analysts to name and shame the worst performing funds in the UK. This Autumn’s report shows a huge rise in ‘dog’ funds – almost doubling from £7.2 billion as at 31st December 2008 to an immense £13.72 billion, up until 30th September, an increase of 89%.

New Star manager moves to Jupiter

Adrian Lowcock 28/10/2009

Guy De Blonay, manager of the New Star Global Financial fund, has decided to leave Henderson New Star and return to Jupiter

Structured Products update - NDF Administration, Defined Returns and Keydata

Adrian Lowcock 22/10/2009

If the experiences of Keydata investors is anything to go by, investors with funds held in NDF Administration and Defined Returns are likely to wait a long time before they find out whether they will get all their money back.

Update from Bestinvest’s CEO

John Spiers 21/10/2009

It has now been one year since I returned to Bestinvest as CEO and I’ve been looking back at what we have achieved over that period.

The Reserve Bank of Australia increases the base rate

Mark Lane 16/10/2009

With cash deposits offering unattractive returns risk averse investors could be forgiven for wanting interest rates to rise.

UK Property - Still time to get exposure

Adrian Lowcock 15/10/2009

We have been positive about the UK property sector for several months, having been attracted by the higher dividend yields and seeing prices starting to stabilise.

ISA rules - how do they affect you?

Adrian Lowcock 08/10/2009

The raising of the ISA limit to £10,200 was one bright spot amidst the bad news within the 2009 Budget and the prospect of further tax rises.

The Cazenove Absolute UK Dynamic - Closed

Adrian Lowcock 15/09/2009

Following a successful pre-launch campaign Cazenove Absolute UK Dynamic fund has closed today.

Retirement planning

Adrian Lowcock 11/09/2009

Pension advertising is usually littered with images of a happily retired couple enjoying an active lifestyle. In today’s climate, the reality for many is not so rosy.

Keydata – an update

Adrian Lowcock 25/08/2009

Pricewaterhouse Coopers LLP (PWC) was appointed administrators of Keydata Investment Services (KIS) on Monday 8th June and is working closely with the HM Revenues and Customs (HMRC) on resolving the outstanding issues

Cazenove Absolute UK Dynamic Fund – new fund launch

Adrian Lowcock 21/08/2009

The Cazenove Absolute UK Dynamic fund is being launched for retail investors from the beginning of September.

Postal Strike

Eskor John 19/08/2009

Royal Mail have announced that postal strikes will be held in London on Friday 7th August and Wednesday 12th August. As a result, regrettably, correspondence via mail between you and us will be disrupted during this period.

Royal Mail Industrial Action

Adrian Lowcock 19/08/2009

Postal services to and from our offices in Chesterfield Gardens continue to be effected by planned industrial action by members of the Communication Workers Union.

Cash ISA rates

Adrian Lowcock 18/08/2009

Cash ISA interest rates have trailed behind what is available in the fixed rate bond market, as seen in a recent survey carried out by Defaqto.

Gartmore European Absolute Return fund - last chance to invest

Adrian Lowcock 18/08/2009

The Gartmore European Absolute Return fund is one of our most highly rated funds.

Is the recession over?

Adrian Lowcock 13/08/2009

Today, France and Germany published data showing that their economies both grew by 0.3% in the last quarter to June 2009, bringing an end to a year long recession in Europe’s two largest economies.

FTSE rally - creates another kind of fear

Adrian Lowcock 04/08/2009

During the latter half of 2008 and the first half of this year, we have seen fear stalk the stock markets.

The week in words

Adrian Lowcock 31/07/2009

A round up of the latest major economic news and developments

Corporate bonds – bank’s own debt

Adrian Lowcock 31/07/2009

With markets rallying and the global economy seemingly on the road to recovery we look at where the best investment opportunities are for investors in SIPPs and ISAs.

The week in words

Adrian Lowcock 31/07/2009

A round up of the latest major economic news and developments

New Star UK Property Fund – management change

Adrian Lowcock 28/07/2009

Roger Dossett is to leave Henderson New Star to pursue other interests.

The week in words

Adrian Lowcock 24/07/2009

A round up of the latest major economic news and developments

Chinese equities – Will the bull break the China?

Rob Harley 24/07/2009

So far Chinese equities have been the bull market story of 2009.

Bank of England’s view – MPC minutes summary

Adrian Lowcock 23/07/2009

This week, the Bank of England (BoE) published its minutes for the Monetary Policy Committee (MPC) meeting that was held on the 8th- 9th July 2009.

Cash ISAs

Adrian Lowcock 22/07/2009

Following the collapse of Lehman Brothers the flow of lending came to an abrupt halt, interest rates were slashed and the banks offering the best deposit rates disappeared.

Compound Interest - A force to be reckoned with?

Adrian Lowcock 21/07/2009

Compound interest, Albert Einstein is attributed with saying, is the most powerful force in the universe.

Week in words

Adrian Lowcock 17/07/2009

A round up of the latest major economic news and developments.

Decoupling: Could emerging markets lead us out of recession?

Eskor John 15/07/2009

The idea that emerging markets could grow independently from the west was popular in 2007. However, shocks to the financial system in September 2008 sent emerging equity markets tumbling and demand contracted savagely.

Quantitative easing – the Bank pauses for breath

Graham Frost 13/07/2009

Last week, the Monetary Policy Committee (MPC) decided not to increase the programme of quantitative easing (QE) from the current £125 billion to £150 billion, the maximum permitted.

Week in words

Adrian Lowcock 10/07/2009

Nationwide re-introduces 125% mortgage

Government relax conditions on pension rules

Matt Brunwin 07/07/2009

The Government has made a concession on the anti-forestalling measures, increasing the maximum annual contribution allowed from £20,000 to £30,000.

July’s monthly economic and market update - online now

Adrian Lowcock 06/07/2009

The monthly update written by our independent Research Team is now available online in downloadable PDF.

The debt burden – what action to take

Adrian Lowcock 06/07/2009

As mentioned in my article on Friday 3rd July, Government debt will rise to £175 billion by the end of the year.

The UK debt burden

Adrian Lowcock 03/07/2009

UK Government debt is likely to reach £175 billion by the end of this year or approximately 12% of Gross Domestic Product (GDP), a proportion of which not seen outside of wartime.

Bestinvestor online

Adrian Lowcock 03/07/2009

Since March and the last issue of Bestinvestor, we have seen more volatility followed by a strong rally.

Week in words

Adrian Lowcock 03/07/2009

A round up of the latest major economic news and developments.

Improving outlook for savers

Stephen Marriott 30/06/2009

Last week the Federal Reserve announced that it was leaving interest rates unchanged at a range between zero and 0.25%

The week in words

Adrian Lowcock 26/06/2009

A round up of the latest major economic news and developments

Active versus passive management – who do you choose?

Adrian Lowcock 25/06/2009

Last year, many pundits and market commentators were all too ready to announce that active managers have had their day in the sun and the future was all about tracker funds.

Who are the world’s strongest banks?

Adrian Lowcock 24/06/2009

As the fallout of the banking crisis subsides Bankers Magazine, in their June issue, has published a report on the relative strengths of the world’s banks and identified those which lost the most money.

What’s happened this week.

Adrian Lowcock 19/06/2009

A round up of the latest major economic news and developments.

Gartmore European Opportunities Fund

Adrian Lowcock 18/06/2009

Gartmore announced today that Roger Guy and Guillaume Rambourg will be stepping down from the day to day management of their £1.5 billion flagship fund, Gartmore European Select Opportunities (and the sister fund Gartmore Sicav Continental European) and handing the reigns over to John Bennett.

Has the rally run out of steam?

Adrian Lowcock 17/06/2009

The rebound seen since March has been spectacular and indeed many investors have watched it from the sidelines.

Core Venture Capital Trust Merger

John Davey 16/06/2009

The managers of Core Venture Capital Trusts (VCT) have announced they are to merge the CORE I, II and III VCTs. The VCTs are 70% invested in qualifying assets and there is now no need to run three separate funds.

No Meltdown in the Summer Sunshine

Nigel Parsons 12/06/2009

As we move into the traditional summer lull, the fickle nature of investor psychology has once again come to the fore.

New Star International Property

Adrian Lowcock 12/06/2009

Henderson has announced they are planning to re-open the International Property fund which was closed last year by New Star.

Ireland credit rating is downgraded

Adrian Lowcock 10/06/2009

The credit rating agency Standard & Poor’s, has downgraded the Irish government’s debt from AA+ to AA.

Keydata Investment Services Limited (KIS) – in Administration

Adrian Lowcock 09/06/2009

On Monday 8th June Keydata were placed into administration based on an application to the Royal Court of Justice by the Financial Services Authority (FSA) on the grounds of Insolvency

Cost of credit climbs

Hugo Shaw 05/06/2009

The difference between the Bank of England base rate and the average interest on unsecured personal loans or credit cards has been gaining ground rapidly over the last 18 months.

Deposit protection

Adrian Lowcock 28/05/2009

Yesterday the Spanish banking giant, Santander, announced that they were merging their three banking groups Abbey, Bradford & Bingley and Alliance & Leicester and rebranding them under the parent name of Santander.

Boiler room scams on the rise

Adrian Lowcock 27/05/2009

City of London Police recently reported an increase in boiler room scams. Creative fraudsters prey on millions of people by selling them worthless shares.

Downgrade to UK’s credit outlook

Hugo Shaw 25/05/2009

Last week, Standard and Poor's, the rating agency, warned that the UK is at risk of losing its coveted AAA credit rating unless it can get better control of its finances and cut debt.

Investment Trusts

Adrian Lowcock 20/05/2009

In the UK, there are over 300 investment trusts with combined assets under management of over £70 billion investing in a wide range of assets from UK equities as well as hedge funds and commercial property.

Disappearing dividends

Adrian Lowcock 19/05/2009

As was widely expected, Marks and Spencer cut their dividend today and they are unlikely to be the last company to do so this year.

Cash ISA rates slump to 0.1%

Adrian Lowcock 16/05/2009

This time last year many of the high street banks were offering very good rates for your cash ISA – as much as 7% if you chose a fixed rate for a year.

William Littlewood - Artemis Strategic Assets

Adrian Lowcock 14/05/2009

William Littlewood came to prominence in 1991 working for the investment management group Jupiter Asset Management as the manager of their income fund.

Swine Flu - Another reason to panic?

Eskor John 07/05/2009

Judging from the FTSE’s latest movements, it would appear that UK investors’ purported overreaction to the H1N1 virus (Human swine flu) has abated.

Top tips to save on tax

Adrian Lowcock 01/05/2009

In order to counter the inevitable tax rises, make sure you are not paying too much to tax to begin with.

Fund Watch - Corporate Bonds

Robert Harley 29/04/2009

A few weeks ago we highlighted some of our preferred bond funds across three of the asset class’s sub sectors.

Déjà vu

John Spiers 24/04/2009

Listening to Alistair Darling’s latest Budget brought back memories of Dennis Healey’s performances in the 1970s – a most disagreeable experience.

Budget Summary 2009

Katharine Lindley 24/04/2009

Despite the fact that the Chancellor is forecasting a stronger economic recovery than other forecasters, the public borrowing projections are much worse than expected.

How to invest ethically

Adrian Lowcock 20/04/2009

Early indications have pointed at a Budget with a green agenda, including plans to invest in the electric car infrastructure.

An overview of corporate bonds

Adrian Lowcock 09/04/2009

For many investors, corporate bonds are less familiar territory than equities. There have been hundreds of mentions in the national press, of them as investment opportunities of late, but rarely, if at all, do we hear about movements in the bond market.

Tax allowances and rates for 2009/10

Adrian Lowcock 08/04/2009

Each year there are slight changes to your individual tax rates.

Be first out of the blocks in the new tax year!

Adrian Lowcock 06/04/2009

ISAs are the most accessible tax efficient investment vehicle. Why wait another 12 months before doing your ISA?

Last Minute ISA - don’t worry we can still help

Adrian Lowcock 04/04/2009

Our telephone lines have now closed, however you can still do you ISA and benefit from our market leading discounts.

Nut screws washers and bolts

Graham Frost 03/04/2009

As the G20 met, I was reminded of the old joke about the escapee from an asylum entering a launderette, borrowing laundry money from each of occupants, before running off.

Surge in clients buying ISAs ahead of 5 April deadline

Adrian Lowcock 01/04/2009

The investment industry has long focused on what it affectionately calls the ‘ISASeason’, the period in March and April when investors make a last-minute rush to secure their ISA allowance before the end of the tax year.

Investing for Income, tax free or not, can still beat cash

Stephen Marriott 31/03/2009

With base rates at 0.5%, those who rely on income from assets are finding it unrewarding to hold cash or government bonds.

Government debt gets interesting

Adrian Lowcock 27/03/2009

A week is a long time in politics and a very long time in finance.

IFSL Bestinvest Income & Growth - changes to charging basis

Stephen Marriott 23/03/2009

Fidelity Special Situations - rating upgraded

Marcel Porcheron 19/03/2009

Sanjeev Shah has had a good first year at the helm of Fidelity Special Situations beating the FTSE All Share index by 5% during 2008.

Why everyone should use their ISA allowance

Adrian Lowcock 17/03/2009

It is not surprising that when an economy lies in tatters the last thing on peoples’ minds is whether or not to use their ISA allowance.

Earn 2.4% fixed rate inside FundsNetwork SIPP

Adrian Lowcock 16/03/2009

Fixed rate accounts can be a good way to gain an element of protection and growth for your money, especially when markets are volatile and investors are looking for security.

Quantitative easing

Graham Frost 12/03/2009

The Bank of England announced recently that it would resort to unusual measures to resolve the banking crisis. As interest rates approach zero, this is all that’s left in its armoury to get banks lending again and the economy moving.

Inflation or deflation?

Graham Frost 09/03/2009

The trend in inflation will be a decisive factor in determining how investors construct portfolios over the next few years. In fact, the degree to which you are a deflation or inflation advocate will influence what assets you will be willing to hold.

Investor behaviour

Adrian Lowcock 26/02/2009

Investment decisions are frequently made in situations of high uncertainty that preclude dependence on fixed rules and compel the decision-maker to rely on intuition, indeed intuition plays a crucial role in many decisions. Adrian Lowcock considers some of the unconscious biases that can cause investors to make irrational investment decisions.

Fund rating review

Adrian Lowcock 24/02/2009

For over 10 years Bestinvest has used a star system to reflect the findings of its detailed analysis of funds and their managers. Historically, the system tended to generate only a very small number of 5 Star funds, often in quite specialised areas.

The Funds that fell to Earth

Tom White 23/02/2009

Every bull market sees the rise of a group of previously unknown funds that soar to the top of the performance charts, sucking in investors’ money in the process. Here we look at some of the high flying funds of 2003-2007 that faltered in 2008.

New Star lose Heart

Adrian Lowcock 11/02/2009

Another day barely passes before there is a further announcement regarding a fund management group, so it is with New Star. Whilst in the background the merger story continues, New Star have announced they are to close their Heart of Africa fund, two months after they suspended trading in it.

Fund managers fight back!

Marcel Porcheron 30/01/2009

A number of fund managers found the record levels of volatility in 2008 intolerable, as tried and tested investment techniques stopped working and reputations were dashed upon the rocks of uncertainty. However, 2008 may also be remembered as the year that a new breed of manager emerged.

Fund Watch

Adrian Lowcock 22/01/2009

Whilst the credit markets remain mired and banks are busy resolving their own problems before being concerned by the lives of others, we see more turbulence in the fund management world. As we’ve said before, we expect to see greater consolidation in this sector with the big players flexing their financial muscles and increasing their presence. In the last week we have seen further developments.

Impact of interest rates on currencies

Graham Frost 13/01/2009

Events in recent months have highlighted the potential impact of currency movements on investor returns. Bestinvest’s CIO looks at how changes in interest rates and other factors can affect exchange rates.

Heroes of 2008

Tom White 09/01/2009

In a world of plunging stockmarkets and unprecedented volatility even some big name fund managers found it tough last year. However, it wasn’t all doom and gloom - here we focus on the managers who got it right in 2008.

New Star - To utilise FSA rule change on suspensions

Adrian Lowcock 07/01/2009

New Star are to exploit changes to FSA rules which allow firms to suspend dealings in funds for indefinite periods. This is a significant change to the old rules where previously they were only allowed to suspend dealing for 28 days and then would have to approach the FSA to request an extension.

Asset Management Consolidation

Adrian Lowcock 05/01/2009

Following the unsettling events of 2008 we are starting to see consolidation in the Fund Management sector with Aberdeen agreeing to purchase Credit Suisse’s funds in exchange for a 24.9% stake in the business, valued at £250 million. The total funds under management with Credit Suisse is £40 billion. Before this announcement Aberdeen were recently tipped as a potential buyer of New Star.

2008 - A year of records

Graham Frost 02/01/2009

Last year was a year of records, most of them bad. Graham Frost looks back at a year many in the financial markets would like to forget.

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