Read more in the Autumn 2016 Budget Statement

• Protection through the years
• Achieving your financial goals
• Keeping your heart healthy
• Maximise your ISA allowance 

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Even a seemingly straightforward financial goal can involve numerous decisions and a lot of time and effort getting it right. Whether it’s buying a home, investing for the future or protecting the people and things you cherish, we're here to help you make the right choices for your needs. Here are some of the services we provide, which our clients have told us they value the most.

Protection
When using comparison sites and direct insurers, how can you be sure their “off-the-peg” solutions meet your specific needs? Using our expert product knowledge we can help you find the right solution for you. Whatever your particular need – be it income, family, mortgage or business protection – we can access high quality products from a range of handpicked providers; providers we have selected because they are proud to stand behind claims when it matters the most.

Investment planning
As well as your pension, you may have opportunities to invest lump sums – such as an inheritance or bonus – but are unsure about what strategy is best. As with all areas of financial planning, it pays to have a clear objective or vision. We can talk you through the important things to consider and help you create a balanced and diversified portfolio, taking into account your financial goals, attitude to risk, and any appropriate tax planning.

Retirement planning
The onus to create a comfortable retirement is falling increasingly on the individual, and the new pension regulations, whilst bringing welcome freedoms, introduce additional complexity to your at-retirement choices.

The right financial plan could help secure a more comfortable retirement – not just for you, but also for your loved ones and heirs. We can help you navigate the complexities of the new rules. Knowing what can be achieved and establishing the right strategy as early as possible can help you prepare for the future.

Inheritance planning
Passing our hard-earned wealth to loved ones often forms a big part of our ambitions. The right forward planning can help you maximise your heirs’ inheritance by minimising tax liabilities. We can help you put the right structures in place.

Of course, your needs in any and all of these areas will change over time, and regulatory changes can impact the effectiveness of any structures already in place, so we recommend a regular review to ensure that your plans remain on track and relevant.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

The value of investments and any income from them can fall as well as rise. You may not get back the amount originally invested.

To find out more about how we can help you, please get in touch

Those are precisely the qualities embodied by Chartered status – the reason we are proud to have achieved the title Chartered Financial Planners.

Chartered status is an objective mark of professional standing among all professions. It is awarded to firms who can demonstrate commitment to developing knowledge, enhancing capability and maintaining ethical standards.

The title Chartered Financial Planners is granted by the Chartered Insurance Institute (CII), the professional body for insurance and financial services.

Chartered firms must meet serious obligations To retain our title we must ensure the advice, service and ongoing support we provide to you are of the highest quality.

Our advice must be based solely on your researched needs, and provided by someone competent to discuss products and services that meet your requirements.

• We ensure our technical and professional knowledge and competence through professional qualifications.
• We keep our knowledge and skills up-to-date through continuing professional development.
• And our staff must be members of the Personal Finance Society (the financial planning arm of the CII Group) and comply with its Code of Ethics, which is enforced through disciplinary sanctions.

Our Chartered title means a lot to us. It was not easily achieved, and it takes continuous investment in customer service and commitment to professionalism to maintain.

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There is a noticeable shift in policy direction from both central banks and governments, which will have a real bearing on the near term direction of markets.

This has been most apparent in the US where the US Federal Reserve (Fed) continues to raise interest rates and President Trump looks to fulfil his election promise of large scale tax breaks and spending. Elsewhere, although there has been no actual change in policy, there is a change of tone. European Central Bank President, Mario Draghi’s upbeat take on the broad economic recovery in the region prompted a rise in the Euro as markets interpreted it as a signal – both for scaling back quantitative easing (QE) measures and possible interest rate rises. In the UK, amidst inflation concerns, Bank of England Governor Carney stated that now was not the time to raise rates or change policy.

Central Banks have been calling on governments to help stimulate their respective economies for a while. Now it seems they might be ready to act. President Trump is seeking to introduce large scale tax reform. However, expectations are being tempered somewhat as the Trump administration struggles to get their healthcare reform bill through the Senate. Some tax reform is expected, but not of the scale originally envisaged. There is room for a surprise but markets aren’t holding their breath.

In the UK, the general election was fought more on domestic policy than Brexit with the electorate signalling a desire to end the age of austerity. Having already softened the approach adopted by his predecessor, Chancellor Philip Hammond’s November budget may prove to be the showcase marking the end of austerity politics in the UK.

All this is important for a number of reasons. A tightening of policy from Central Banks will affect both the bond and currency markets as well as impacting the broader economy and so will need to be managed carefully. A loosening of fiscal policy from government is intended to provide a boost to the economy. A combination of loose monetary and fiscal policy, should be highly stimulative for asset prices, at least in the short term.

Market volatility remains relatively subdued, particularly given the geopolitical backdrop. We continue to be cautious given the political uncertainty and room for policy error from both government and central banks. However, the dynamic between loosening fiscal and accommodative monetary policy could provide short-term investment opportunities. Global economic growth is coming through, which is a positive.

Need advice about your investment options? Call us on 0118 9654155.

Past performance is not a guide to future performance. The value of an investment and any income from it can fall as well as rise as a result of market and currency fluctuations. You may not get back the amount you originally invested
 
For information only. Always seek our professional advice before acting.
 
The information contained is correct as at the date of the article. This market bulletin does not constitute investment advice and is not intended to state, indicate or imply that current or past results are indicative of future results or expectations.

Read the Omnis market update »

Watch the videos here »

Past performance is no guide to future performance and may not be repeated.
The value of your investments and any income from them can fall as well as rise so you could get back less than you invested.

Read the full Omnis market update »

The Committee met recently to discuss the Omnis funds and the performance of the external fund managers. This bulletin summarises the principal discussion points from that meeting and is the latest in a series of regular updates from the Committee, which takes seriously its responsibility to ensure the funds are properly managed at all times.

Read the full update »

Global equity markets fell late in the week in the wake of a terrorist attack in Barcelona, and further concerns about Donald Trump’s presidency.

Read the full update »

Individual Savings Accounts (ISAs) are tax-efficient savings plans that allow you to shelter up to £20,000 in the 2017/18 tax year free from income and capital gains tax. So, if you’ve always been a saver but you’ve never considered an ISA you could be losing out to the tax man.

Make your savings work hard
You have a number of options when it comes to your ISA investment:

• Invest up to £20,000 in a stocks and shares ISA
• Invest up to £20,000 in a cash ISA
• Split the £20,000 between the two

Whichever route you choose, it’s important to take advantage of your ISA allowance every tax year. That way you can shelter more of your savings from tax and make your savings work for you.

Benefits of the ISAs
With a cash ISA, no matter the current interest rate, your savings will be free from income tax and will not count towards your Personal Savings Allowance. Therefore, you can save with a cash ISA and earn up to £1,000 income from any other savings (£500 if you are a higher-rate taxpayer), before having to pay tax.

Furthermore, by taking a stocks and shares ISA, you will not have to pay any Capital Gains Tax (CGT), which is a good option if you are likely to exceed your £11,300 annual CGT allowance.

Important points to consider
The tax efficiency of ISAs is based on current rules. The current tax situation may not be maintained. The benefit of the tax treatment depends on individual circumstances.

Although there is no fixed term, you should consider stocks and shares ISAs to be a medium to long term investment of ideally five years or more.

The value of your investments and any income from them may fall as well as rise and is not guaranteed. You may get back less than you invest.

After a difficult start to the week, the UK’s FTSE 100 index ended Friday at 7,400. However, further fears over North Korea have weighed heavily at the start of this week.

Read the full update »

Download the guide now »

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How to avoid a DIY disaster
Will your home insurance cover you for spilled paint or a foot through the ceiling?

The matter of trusts
Making sure your life cover goes to the right people at the right time in the right way.

Don't crowdfund the cost of your healthcare
A critical illness plan could help you avoid financial hardship when you need it most.

Download our Protection Newsletter - September 2017 now »

Cash ISAs
Are they still worth the investment?

Is your pension tax efficient?
A run-down of the allowances and tax-efficient accounts which reduce your tax liability.

Pension Advice Allowance
A government initiative to get more people access to crucial advice.

Saving for a happy retirement
How much would you need for a comfortable retirement?

Risk vs reward
When it comes to investing, it's a fact that risk and the potential for reward go hand in hand.

Lasting Power of Attorney
Making sure people you trust can look after your affairs if you become mentally or physically unable to.

The State Pension - all you need to know
Do you know what you're entitled to?

Download our Protection Newsletter - September 2017 now »

August’s biggest story was the strength of global economy, which surprised on the upside.

China’s official Purchasing Managers’ Index (PMI) figure was at 51.7 for the month, exceeding expectations (any reading above 50 indicates expansion, while a number below 50 indicates contraction). Business activity also remained robust in the US and the Eurozone, albeit slowing slightly in the latter’s case. This is unusual: since the global financial crisis, there have only been a few occasions when the three major drivers of the global economy have simultaneously shown strong growth momentum.

The apparent robustness of the global economy is particularly interesting given the volatile nature of geopolitics at the moment. Growing anxiety over North Korea’s nuclear capability, which might be expected to unsettle investors, has so far had negligible impact on growth and financial markets. This is probably because large-scale central bank asset purchases have left most investors holding a lot of cash on their balance sheets. At times like these, investors tend to buy quickly at any signs of a slowdown, ensuring sell-offs are short-lived and maintaining macroeconomic stability.

Will it last? We have our doubts. Chinese growth is likely to slow towards the end of the year as the authorities ramp up their efforts to regulate the financial system once the 19th Party Congress has taken place in November. A slowing China will negatively impact the Eurozone, while Federal Reserve tightening and the prospect of policy gridlock could dampen US growth.

Indeed, developments in the US are likely to be the major story of the autumn. The beginning of Federal Reserve balance sheet contraction, although widely-anticipated, will need to managed carefully to avoid a repeat of 2013’s ‘taper tantrum’ (when reports of Fed tapering caused investors to flee bond markets, sending yields soaring and prices plummeting). At the same time, Congress has an enormous September to-do list, including finding agreement over proposed tax reforms, increasing the debt ceiling and passing a new budget plan – while simultaneously channeling aid to the victims of Hurricane Harvey. If negotiations don’t go well, the prospect of a government shutdown and the US defaulting on its debt has the potential to cause widespread panic in markets.

So while the overall growth picture is positive and the markets remain calm – for now – North Korea, internal political developments in China and the US have the potential to cause turbulence over the next few months.

Need advice about your investment options? Please call us on 0118 9654155.

Past performance is not a guide to future performance. The value of an investment and any income from it can fall as well as rise as a result of market and currency fluctuations. You may not get back the amount you originally invested.

For information only. Always seek our professional advice before acting.

The information contained is correct as at the date of the article. This market bulletin does not constitute investment advice and is not intended to state, indicate or imply that current or past results are indicative of future results or expectations.

Politics are not the only risk on the horizon.

As the tenth anniversary of the Global Financial Crisis passed this month, our thoughts turned to the ongoing muted volatility in financial markets. The ‘Goldilocks’ conditions of improving growth without price pressures are something of a surprise, yet appear to be increasingly discounted in analysts’ and investors’ expectations. This situation may appear to be benign, but with valuations across many asset classes appearing full (not to mention negative term premia in bonds) potential risks are mounting.

Among the risks we see on the horizon are geo-politics, changes in central bank leadership, taper tantrums, and the dollar and emerging markets.

Political risk remains elevated in the United States, but had also been rising in Japan with polls indicating Prime Minister Shinzō Abe was falling out of favour with the Japanese electorate. However, improved economic growth data and a less hostile attitude from the public following recent scandals looks to have headed off any political crisis for Abe.

A change in central bank leadership could challenge the easy monetary policy conditions that have underpinned risk assets in recent years, threatening the ‘lower for longer’ rate environment. In Europe, Mario Draghi’s term ends in October 2019, while Janet Yellen’s tenure in the US ends in January 19, and Japan governor Haruhiko Kuroda’s term ends in April. Their replacements could potentially accelerate central bank normalisation, which could have serious repercussions for global risk assets.

Taper tantrums are possible in Europe as the European Central Bank turns less accommodative, especially as the strengthening and broadening recovery in the euro area signals further tapering of its QE programme. Ditto with the Fed, where term premia in US rates has turned negative. With share buybacks having slowed dramatically, equities may be vulnerable – although they price in greater risk premia than the likes of corporate bonds.

Need advice about your investment options? Please call us on 0118 9654155.

Past performance is not a guide to future performance. The value of an investment and any income from it can fall as well as rise as a result of market and currency fluctuations. You may not get back the amount you originally invested
 
For information only. Always seek our professional advice before acting.
 
The information contained is correct as at the date of the article. This market bulletin does not constitute investment advice and is not intended to state, indicate or imply that current or past results are indicative of future results or expectations.

Gather all the information
You need to gather information on all your assets, including pensions as well as savings and investments. Don’t forget to include your State Pension. There are ways to boost your State Pension; such as buying top ups - which apply for women born before April 6, 1953 and men before April 6, 1951. These can increase your state pension by up to £25 a week - so is well worth investigating. You can also get a higher monthly pension by delaying when you take the first payments.

Once you have the paperwork together you will need to consider what you expect to live off. Work out your current living expenses and what you expect to spend more or less on as you leave work as well as your long-term plans for the future.

The Bank of England Base Rate has been below 1% for over eight years causing interest rates to be low which in turn makes retirement saving more difficult. If you find the numbers don’t add up, you could consider increasing the amount you pay in to your pension and/or staying in full-time or part-time work longer than you originally planned until you close the gap.

Consider tax
Usually 25% of your pension can be taken tax free and the other 75% is taxed as earned income.

Getting the right tax advice could help you withdraw your cash in the most tax efficient way. For example, you may be able to take a smaller amount of money from your pension and more from your ISA (which can be tax free).

Get advice
With many different types of options available for your retirement it can be an overwhelming decision to make the right choice for your needs. We can help you understand all the options open to you and help you avoid risks such as the impact of poor investment market performance both in the run-up and early in retirement or potentially running out of money in retirement.

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Opt for a dry cut – save on the cost of washing and drying
Check your options - a senior stylist will cost more than a newly qualified or senior stylist
Go on a weekday – Or try and get a cancellation gap. Some salons will offer a lower rate for those who can fill in any last-minute gaps

Go to college – Trainee hairdressers are always looking for volunteers to practise on, but don’t worry they are always well supervised.

Compare – Save money on your hair care products by comparing the costs online to see if it is cheaper to buy in bulk or get bigger bottles.

But what will you do with all that money saved?

The Office for National Statistics (ONS) has said the average retired household now spends £21,770 a year. To earn a pension of at least £20,000 you should be saving at least £246 a month (at 25)

At 5% growth, an annual investment in to an ISA of £751 over those 20 years could give you lump sum of £22,338. Even saving the amount men spend, £364 per year, for 20 years at the same growth of 5% could give you £10,827.

This projection is illustrative only not guaranteed, and such forecasts are not a reliable indicator of future performance. Fees and costs included in the calculations were assumed examples only.

If you don’t want to give up your salon brand for a supermarket one there are plenty of other ways you can save extra money:

• The Energy Saving Trust has a free home energy check tool on its website that can save some households £250 with its personalised advice at hec.est.org.uk
• Make your lunch instead of buying it and you could save up to £5 per day
• Not all companies are listed on Price comparison websites including two of the biggest Zurich and Aviva. It pays to get advice on the most appropriate policy for you.

There are plenty of ways you can curb your everyday spending. And we can help you invest the savings you have made in the most suitable way for your current and future plans.

The value of your investments and any income from them may fall as well as rise and is not guaranteed. You may get back less than you invest.

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It was a quarter for emerging markets and commodities, as a combination of robust economic recovery and low inflation drove the outperformance in these assets.

The trend was helped by a weak dollar with investors responding to signs of strength in activity outside the US, particularly in the eurozone. Overall, risk assets (such as equities) performed well, although sovereign bonds did well until the last month of the quarter when a more hawkish tilt from the US Federal Reserve (Fed) caused yields to rise.

As a house, Schroders’ asset allocation remains biased toward equities and emerging markets and we are generally short duration in our bond portfolios. This is largely based on a continuation of the “goldilocks” macro environment where growth is healthy, but not too strong to trigger inflation. Interest rates are likely to rise further in the US but we believe that the Fed will proceed cautiously and not reach the levels projected in its famous dot-plot of rate forecasts.

On a more cautious note, we do see the liquidity environment shifting significantly in 2018 as the Fed reduces its balance sheet and the European Central Bank (ECB) starts to taper its quantitative easing programme.

Although the Bank of Japan will continue with an ultra-loose monetary stance, we question whether this can be seen as a replacement for Fed or ECB asset purchases.

The recovery in global activity remains intact while inflation appears to have peaked following the stabilisation in energy costs. We continue to forecast global growth at 3% this year after 2.6% in 2016, but have trimmed our inflation forecast to 2.3% from 2.4%. The combination of steady growth and low inflation means we remain in a goldilocks environment where activity is neither too hot nor too cold to cause a significant acceleration in inflation.

On the growth side, the US forecast is unchanged for 2017 while an upgrade to the eurozone is accompanied by a stronger forecast for China and the wider emerging markets. In this respect, Europe is picking up the baton from a cooling US.

On inflation, we have reduced our forecasts across the board to reflect a lower oil price profile and subdued core readings. Looking ahead to 2018, global growth is expected to remain stable at 3% with modest downgrades to the US, offset by upgrades to the eurozone and emerging markets.

Need advice about your investment options?  Please call us on 0118 9654155.

Past performance is not a guide to future performance. The value of an investment and any income from it can fall as well as rise as a result of market and currency fluctuations. You may not get back the amount you originally invested
 
For information only. Always seek our professional advice before acting.
 
The information contained is correct as at the date of the article. This market bulletin does not constitute investment advice and is not intended to state, indicate or imply that current or past results are indicative of future results or expectations.

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Take control of your investments - The features and benefits of an online Platform.
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Find out more in our Autumn 2017 Budget Bulletin »

These Budget notes are provided for general consideration only. While every care has been taken in its preparation it is essential that no action is taken or refrained from based on its contents alone. Advice is absolutely essential and so no responsibility can be accepted for any loss occasioned as a result of such action or inaction. The contents of this Budget Report are based on the proposals put forward by the Chancellor in his Budget speech. These need to be approached with caution as the details may change during the passage of the Finance Bill through Parliament. For information only. Always seek our professional advice before acting.

With its new higher annual allowance, the tax-saving potential of Individual Savings Accounts (ISAs) is
greater than ever. You can invest up to £20,000 a year in an ISA either in a single lump sum or in stages at any time during the tax year. There is no Income Tax on interest or dividends you receive from investments within your ISA and any profits generated are also free of Capital Gains Tax.

Find out more about ISAs in our handy download »

What's the alternative to a cash ISA?

With its new higher annual allowance, the tax-saving potential of Individual Savings Accounts (ISAs) is
greater than ever. You can invest up to £20,000 a year in an ISA either in a single lump sum or in stages at any time during the tax year. There is no Income Tax on interest or dividends you receive from investments within your ISA and any profits generated are also free of Capital Gains Tax.

Find out more about Stocks and Shares ISAs in our handy download »

The value of investments and any income from them can go down  as well as up and you may not get back the original amount invested. Past performance is not a guide to future performance and should not be relied upon.

The Committee met recently to discuss the Omnis funds and the performance of the external fund managers. This bulletin summarises the principal discussion points from that meeting and is the latest in a series of regular updates from the Committee, which takes seriously its responsibility to ensure the funds are properly managed at all times.

Read the full update »

On 20 January, Donald Trump was inaugurated as the 45th President of the United States. Global stock markets had rallied since the election result on 8 November, with many in corporate America hoping to benefit from promised tax reforms. Not everyone was happy. The day after Trump's inauguration, approximately half a million people protested in the Women's March in Washington DC, making it one of the largest one-day protests in American history.

In Europe, the Dutch were hailed as having “defeated populism” in the 15 March election by denying the Geert Wilders-led Party of Freedom’s bid for power.

On 7 May Emmanuel Macron of En Marche! was declared President of France having won the second-round vote against the Marine Le Pen-led National Front by a decisive margin. Again, the election is billed as a win against populism and Europe’s far-right. World stock markets are at their highest point for the year so far.

Across the Channel, the UK general election on 8 June restored Theresa May as Prime Minister, but only after the Democratic Unionist Party of Northern Ireland agrees to support a Conservative minority government. As the results came in, the prospect of a hung parliament led to an immediate fall in the value of the pound. May’s intention was to seek an overall majority, paving the way for easier Brexit negotiations.

After a relatively quiet end to the summer, aside from ongoing Brexit discussions, the Eurozone’s biggest player Germany held its federal election on 24 September. The result saw the Christian Democratic Union win only 33% of the vote – its lowest share of the vote since 1949 – but enough to see Angela Merkel remain as Chancellor. Markets then rallied for the last week of September and continued to climb in October.

Into autumn and it was the turn of the Japanese to go to the polls on 22 October. Given the dramatic fall in popularity that many world leaders had found themselves in over the year, it was a relief for Prime Minister Shinzo Abe to secure a big election win. The father of ‘Abenomics’ and the ‘three arrows’ policy of monetary easing, fiscal stimulus and structural reform, Abe’s victory was welcomed by a rise in markets.

Elsewhere in Asia, perhaps the most significant global change was happening in China where the hugely powerful Communist party held its five-yearly congress. President Xi Jinping cemented his legacy with his own political philosophy being written into the country’s constitution.

Emerging markets will dominate the electoral calendar in 2018, with votes due in the likes of Russia, Mexico, Brazil and Pakistan.

If you're concerned about how global events could impact your investment portfolio, please get in touch.

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The FTSE 100 ended January at 7,533.55, which was 2.0% lower than the 2017 year end closing figure of 7,687.77. During January, the index climbed to an intra-day high on 12 January of 7,792.56.

In the US, the Dow Jones Industrial Average continued its general upward momentum, closing January at 26,149.39. This was 5.4% above the 2018 opening level of 24,809.35 and was the tenth straight monthly gain, leaving March 2017 as its last losing month.

In terms of £ Sterling, it ended January at 1.41 US Dollars. This was 5.1% higher than the closing figure at the end of December of 1.35 US Dollars, and 15% higher than the closing figure in 2016 of 1.23 US Dollars.

Against the Euro, £ Sterling ended January at 1.14 Euros, which was slightly higher than the year opening rate of 1.13 Euros.

Inflation, as measured by the Consumer Prices Index including owner occupiers’ housing costs (CPIH), was 2.7% in December 2017 (this is December’s data which is reported in January). This was down from the previous month’s rate of 2.8%. The 12-month rate for the Consumer Prices Index (CPI) rate which excludes owner occupied housing costs and council tax was 3.0% in December 2017, which was also down from the 3.1% in November 2017.

The increase in interest rates during November 2017 helped long-suffering deposit savers slightly. However, they continue to lose money in real terms when you consider the rate of savings interest compared to the rate of inflation.

The Omnis Managed funds, Openwork Graphene Model Portfolios and new Omnis Managed Portfolio Service provide you with a diversified asset allocation in line with your Attitude to Risk, investing in Developed Market Equities, such as UK, US, Europe and Asia Pacific as well as Emerging Market equities. Cautious and Balanced investors will also have significant holdings in UK and Global Bonds, as well as Alternative Strategies.

We believe this multi-asset approach aims to give you the best opportunity for the highest level of return for your stated level of risk.

Past performance is not a guide to future performance. The value of an investment and any income from it can fall as well as rise as a result of market and currency fluctuations. You may not get back the amount you originally invested.

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If you're considering investing in the stock market, one crucial and very personal issue is, quite simply, how you feel about the prospect of putting money at risk and your ability to accommodate any loss in value.

What's your appetite for risk?

It's a fact that risk and the potential for reward go hand in hand: Investments that are low in risk are low in potential reward, whereas the more risk you're willing to take with your money the greater the potential for reward.

Factors in determining risk

As investment advisers, we will consider a range of factors  when assessing your attitude to investment risk:

• Age - how old you are may affect how you would like to invest, particularly the closer you get to retirement.
• The need for emergency cash - you should always keep a certain amount readily accessible (for example, in a deposit account) in the event of an emergency or as a foundation for your longer-term savings and investment.
• Can you afford to take a risk? - if your investments dropped in the short term, do you have the time to wait for them to recover?
• Can you afford not to take a risk? - leaving all your money on deposit may carry minimal risk, but you may miss out on higher potential returns and possibly see the spending power of that money fall due to inflation.
• Are there tax-efficient opportunities available - such as pensions or ISAs?

Devising an appropriate investment strategy

Once you are clear about the risk you need to take to reach your goals and you feel entirely comfortable with your risk profile, you'll need an investment strategy that is finely calibrated to deliver the results you’re looking for.

This is where a number of other key aspects of investment come into play:

1. How to avoid the ‘eggs-in-basket’ principle. We can make sure your portfolio is invested across a range of assets in order that the positive performance of some neutralises the negative performance of others.
2. Making sure that your money is in the hands of some of the best and most consistent investment managers in the business.
3. Making sure you can give your investments time - the longer you can leave your investments in place, the more likely you are to cope with any short-term changes in market value.

Talk to us

As members of Openwork, one of the UK’s largest networks of financial advice businesses, we follow a clear and thorough process designed to clarify exactly what you need from your investments. We also have access to a meticulously researched and managed range of investments specifically designed to meet clients’ different needs.

Taken together, you will know not only that your money is in good hands, but also that given time, there is an increased level of probability that it will perform in line with your expectations.

Need advice?

Good investment advice involves building a clear picture of the results you're looking for, taking into account your current financial position, your future goals and your personal attitude towards the subject of investment risk.

Talk to us for expert advice.

The value of investments and any income from them can fall as well as rise. You may not get back the amount originally invested.

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Globally, all attention has been on China where the coronavirus has now spread to 27 countries and territories worldwide, with 17,488 confirmed cases and 362 deaths (as of 3 February 2020).

The FTSE 100 ended January at 7,286.01 which was 3.4% lower than December’s closing figure.

In the US, the Dow Jones 30 was 1.0% lower ending January at 28,251.47.

In terms of currency, £ Sterling ended January at 1.32 US Dollars.  This was 0.5% lower than the figure at the end of December.

Against the Euro, £ Sterling ended January at 1.19 Euros, which was 0.5% higher than the December closing figure.

Inflation, as measured by the Consumer Prices Index including owner occupiers’ housing costs (CPIH), was 1.4% in December 2019 (this is December’s data which is reported in January).  This was 0.1% lower than the previous month.  The 12-month rate for the Consumer Prices Index (CPI) rate which excludes owner occupied housing costs and council tax was 1.3% in December, down from 1.5% in November.

The Bank of England maintained interest rates at 0.75% in January.  The last change was an increase in August 2018.  This means long-suffering deposit savers are likely to continue to lose money in real terms when you consider the rate of savings interest compared to the rate of inflation. 

The Omnis Managed funds, Openwork Graphene Model Portfolios and Omnis Managed Portfolio Service provide you with a diversified asset allocation in line with your Attitude to Risk, investing in Developed Market Equities, such as UK, US, Europe and Asia Pacific as well as Emerging Market equities.  Cautious and Balanced investors will also have significant holdings in UK and Global Bonds, as well as Alternative Strategies.

We believe this multi-asset approach aims to give you the best opportunity for the highest level of return for your stated level of risk.

Past performance is not a guide to future performance. 
The value of an investment and any income from it can fall as well as rise as a result of market and currency fluctuations. 
You may not get back the amount you originally invested.

Figure 1: The Vix index: Wall Street’s fear gauge

Source: Bloomberg

While the coronavirus poses obvious healthcare threats, the threat to investors might be less clear. In short, efforts to limit the spread of the virus – particularly in China – have caused factories to shut their doors and encouraged consumers to stay at home. This has disrupted global supply chains, leading to a shortage of some key components, and undermined retail sales. Against this backdrop, companies have begun to reduce their profit forecasts for the first quarter of the year. The impact has been most pronounced among airlines, cruise ship operators and commodity (e.g. oil and precious metal) producers. However, as illustrated by Mastercard’s recent profit warning, a wide range of companies are likely to be affected.

So, should we be joining the panic and selling shares where possible? The answer is complicated by the fact that no-one knows exactly how great the pandemic threat really is. While we take some comfort from the response – both in medical and investment terms – to previous outbreaks such as SARS and African Swine Flu, there is little way of knowing how relevant these episodes are to the current situation. Nonetheless, we can argue that, historically, selling shares at this stage would lock in losses and forego future gains.

Though some questions remain over the strength of future company profits, we believe that in most scenarios the impact of the virus should prove temporary. Once contained, manufacturing activity should recover while consumers may well make up for the purchases they have recently deferred. Furthermore, to our minds, valuations are all important. The recent sell-off has left the majority of global stock markets at valuation levels we consider reasonable, even against a more uncertain outlook for profits. In short, we are more likely to consider yesterday’s sell-off as an opportunity to top-up share holdings in OMPS portfolios rather than to cut them.

As ever, we will continue to monitor developments closely. Heeding the words of the seminal economist John Maynard Keynes, we must stand ready to change our minds if presented with a change in the facts. For now, however, we believe history, valuations and the economic outlook argue investors will be best served by maintaining their share holdings.

This has prompted sharp movements in global financial markets. As measured by the MSCI All Countries World index, global equities had, by yesterday’s close (27th February) fallen close to 10% from their peak in sterling terms. Thus far, stock markets have continued their downward march today, with Asian markets down c.3% and, at the time of writing, European markets following suit. By some measures, this has been the worst week for global equities since the depths of the financial crisis in 2008.

In market terms, the past week can be characterised as a ‘flight to safety’. Investors have sold riskier assets, such as stocks, and bought ‘safe haven’ assets such as high-quality government debt, including UK gilts.

Figure 1: While stocks have fallen, safe haven assets – such as gilts – have made gain

Omnis firmly believes in the benefits of active investment management. While investors in passive vehicles have no option but to blindly follow the index – buying more of the things that have become more expensive and selling more of those that have become cheaper – active managers have the ability to direct money towards opportunities others appear to have overlooked or misunderstood.

At Omnis, we believe this flexibility is valuable, particularly when we experience the significant market turbulence we have witnessed over the past few weeks. While in times of heightened fear or greed, markets and individual securities may move in lockstep for a while, this ultimately leads to mispricing and opportunities for active managers.

Active Oversight

Omnis’ support of active investment managers gives rise to two important responsibilities.

First, Omnis must ensure that each fund is being managed as expected. This involves detailed assessment of the portfolios and the associated risks, both the regulations and each fund’s policies and objectives.

Second, Omnis aims to ensure that not only are its funds being managed appropriately, they are also being managed well. To the Omnis Investment Team, this means each manager must have a clear understanding of the qualities that define an attractive investment opportunity and a repeatable process that enables them to identify and invest in assets displaying these characteristics.

Oversight of the fund range is very much a ‘business as usual’ activity for Omnis. However, periods of pronounced turbulence in financial markets increase the need for robust and timely governance. Sharp moves in financial markets can uncover previously undetected risks while historic data quickly becomes irrelevant.

The scale and reputation of Omnis helps the Investment Team secure privileged access to our fund managers. This access is always valuable, but never more so than in conditions like those we have seen in recent weeks. In March alone, the Omnis Investment Team had 22 conversations directly with its fund managers and a further 25 or so with various risk, compliance and support functions at the investment houses with whom we partner.

Further valuable insight has been attained through Omnis’ relationship with Fundhouse.

Working with Fundhouse

Fundhouse is an external, independent investment adviser that provides fund manager research, portfolio construction and asset allocation support for Omnis. It is a multi-award-winning firm, known for its methodical approach and high-quality investment research.

“During challenging times like these it is important that Fund Managers remain true to their core investment principles and continue to operate in a disciplined, considered and effective manner. Despite the market volatility, the Omnis Investment and Fundhouse teams work collaboratively to oversee our Fund Managers’ activities and to ensure they continue to justify the faith we have in their ability to deliver long-term value to Investors.” - Rory Maguire, Fundhouse CEO

Figure 1: Fundhouse monthly meetings with Omnis

Fundhouse is an important resource for Omnis at the best of times. However, in times of elevated market stress – such as in February and March this year – this importance is amplified. While global events have been unfolding at breakneck speed, having recourse to the expertise of the Fundhouse team has undoubtedly enabled Omnis to cover each of its funds in greater depth and with greater speed than would otherwise have been possible.

THE Omnis Fund Range

Working together with Fundhouse, the Omnis Investment Team has kept abreast of how each of its funds has been coping with marketplace volatility, and how their managers have been using the flexibility afforded to them as active investors. Excerpts from just a few of these interactions are presented below:

Omnis UK All Companies (Colin Morton, Franklin Templeton)
Colin and the rest of the Franklin UK equity team acknowledge that “things do seem pretty bleak at the moment”. However, they also recognise that the global economy will eventually recover, albeit that the timing of that recovery is uncertain. As ever, the team is taking a patient approach, but opportunities are starting to present themselves:

“Certain companies or sectors such as health care, personal household goods and utilities look to fare better during this time of market turmoil, but indiscriminate selling sprees start to unlock values. From a valuation perspective, UK stocks are so lowly priced now that it won’t take much for share prices to go back up, should we see glimmers of positive news.”

For Colin, the focus is on striking the right balance between acknowledging the uncertainties of the coming months and remaining alive to the opportunities presented by the UK stock market’s falls.

Omnis Income & Growth (Ben Whitmore, Jupiter)
Historically, equity bear markets have typically been more bruising for expensive stocks than they have for cheaper stocks. Ben sees no reason why this time should be any different:

“Our main defence against a global recession is very low starting valuations, strong balance sheets and a very widely spread portfolio that has exposure to a wide range of industries... It is fair to say that this is providing little protection in the stock market’s eyes at the moment, but we find it hard to imagine that it can carry on in this manner for an extended period of time as otherwise financial market history will be turned on its head.”

Ben has added to positions that have fallen sharply, but where the companies have strong balance sheets. Conversely, he has sold positions in companies such as Capita and ITV which appear less well able to weather current conditions. Despite this shift towards higher quality companies, Ben notes that, as measured by the Graham & Dodd P/E multiple (a commonly used indicator of value), his portfolio has never before been as attractively valued as it is now.

Omnis US Equity Leaders (Jeff Rottinghaus, T.Rowe Price)
Jeff aims to invest in high quality, market-leading companies. This approach has stood the fund in good stead over recent weeks, because such companies are deemed more likely to cope with the economic consequences of the coronavirus. Of course, share prices for these companies have still fallen – but Jeff believes this presents some interesting opportunities for active stock pickers.

“While the coronavirus will likely take a toll on economic activity in the first half of the year, abundant global liquidity and a forceful global policy response mean that there is a chance that growth could reaccelerate later in the year. We are also mindful that past periods of market upheaval have presented opportunities for those willing to focus on the long-term potential of well-positioned companies.”

For Jeff, well-positioned companies include a number of names in the technology sector – among the few beneficiaries of the global shift to working from home. Elsewhere, Jeff has increased allocations to the healthcare sector and decreased those to the financial and energy sectors, both of which tend to be closely linked to the outlook for economic growth.

Omnis European Equity Leaders (Cedric de Fonclare, Jupiter)
Market dynamics in Europe have been very interesting. The initial response to the threat of the coronavirus was a sharp, all-encompassing sell off. This was followed by signs of discrimination among investors as higher quality companies and those less directly affected by efforts to contain the virus held up relatively well. However, Cedric notes that, towards the end of March, activity in European stock markets became disordered – historically a sign of ‘capitulation’ as fear peaks among investors.

“European equity markets are still very volatile, but we would tentatively suggest that the recent monetary and fiscal stimulus packages announced across Europe have helped to avert the worst possible outcome of the current crisis. In essence, the existential risk for many listed companies has likely been greatly reduced."

Despite some tentative optimism, Cedric is not getting carried away. The fund remains focused on the long-term prospects of good businesses, some of which are now trading at valuations that are as low as they have been in years.

Omnis Global Emerging Market Equity Leaders (Alex Duffy, Fidelity)
Alex has been focusing on investing only in companies with high quality balance sheets and maintaining ample liquidity in the portfolio.

“At this juncture, we do not want to make short-term decisions that impair long-term value creation potential… We want to be buying more of the best businesses in emerging markets that take market share while competitors are retrenching.”

The sell-off in equity markets has enabled Alex to buy into some high-quality businesses he has been watching for some time, but where valuations have previously been too demanding.

Omnis Sterling Corporate Bond (Alasdair Ross, Threadneedle)
Though the falls have been less eye-catching than those in stock markets, global bond markets have been at the epicentre of the recent market turbulence. Investors worldwide have sold all types of risky assets, including bonds issued by companies, which in most cases are seen as higher risk than those issued by governments. This rush for the exit has raised fears over liquidity (the ease of buying and selling assets at prices close to their ‘fair’ market value) in corporate bond markets. Following the intervention of major central banks, Alasdair believes this pressure is now fading.

Wary of high valuations and the marked increase in corporate indebtedness in recent years, Alasdair has been prioritising portfolio liquidity for some time, favouring ‘defensive’ sectors, such as utilities, which tend to be less sensitive to the economic cycle. As a result, the fund is well-positioned to take advantage of the opportunities presented by forced selling from other market participants.

Omnis Diversified Returns (Suhail Shaikh & Nabeel Adboula, Fulcrum)
Omnis has been in daily communication with the team at Fulcrum throughout the duration of the market turbulence. The investment approach that Suhail and Nabeel oversee is incredibly research intensive and Omnis has benefited from its access to Fulcrum’s comprehensive and up-to-date analysis of the coronavirus pandemic.

Once it became clear that the virus would spread beyond China, Suhail and Nabeel acted swiftly to reduce the fund’s exposure to equities and to other ‘risk on’ strategies involving commodities and inflation. As a result, the fund has held up admirably in this most challenging of investment environments. Importantly, the fund’s returns have differed from those delivered by equity and bond funds, offering diversification benefits when held as part of a portfolio.

“Many investors (and, privately, some policy makers) are asking whether this degree of stimulus in the US and most other major economies can be “afforded”, or whether it will cause government debt crises and, later, rising inflation. If the answer to either of these questions is positive, markets could lose confidence in the ability of the authorities to cope with the coming recession and the results for asset prices could be gruesome. Fortunately, this is unlikely to be the case.”

In Summary

While active oversight of its funds is very much a ‘business as usual’ activity for Omnis, the pace and scale of recent global developments has highlighted the importance of this function. Omnis has worked hard throughout the period of market turbulence to ensure not only that the Omnis funds are being managed prudently and in accordance with the rules and regulations, but also that they are being managed well.

Omnis has undoubtedly benefited from its access to the expertise, rigour and independence of Fundhouse. Though working collaboratively, discussions between Fundhouse and the Omnis Investment Team are typically robust: neither Omnis nor Fundhouse would want it otherwise. Omnis – and investors – can take some comfort in Fundhouse’s opinion of the Omnis fund range:

“The Omnis Funds have generally performed well against their peers during the recent market volatility. This is testament to the quality of the fund manager selection process and the ongoing monitoring programmes. There can be no guarantees that a problem will not occur with any given fund manager, but Fundhouse prides itself on having independent, close and effective relationships with those used by Omnis. The insights provided by these relationships, combined with Fundhouse’s own independent market assessments, are widely shared with the Omnis Investment Team and the Investment Committees of both Omnis and Openwork." - Rory Maguire, Fundhouse CEO

Omnis believes its funds are well-positioned to weather the current market turbulence and, furthermore, to take advantage of the opportunities these conditions resent to disciplined investors. The governance structures and research processes at Omnis are designed to ensure this remains the case throughout this period of heightened volatility and beyond.

Colin Gellatly
Deputy Chief Investment Officer, Omnis Investments

Rishi Sunak announced that the tapered annual allowance limits will be altered. The Threshold and Adjusted Income limits will move from £110,000 and £150,000 respectively to £200,000 and £240,000*.

Further to this the minimum Annual Allowance for those who are fully tapered will reduce from £10,000 to £4,000.

Threshold Income
Threshold income is:

• Taxable income for the tax year less
• Any taxable lump sum pension death benefits accruing in the tax year plus
• Employment income given up for pension contributions (i.e. salary sacrifice) under an arrangement made on or after 9 July 2015 less
• The gross amount of any relief at source pension contributions.
• Money Purchase = value of contributions
• Defined Benefit = Pension Input Amount minus member contributions

Adjusted Income
Adjusted Income is essentially Threshold Income plus the value of employer contributions, which are:

If you have Threshold Income below £200,000
Your pension annual allowance will not be restricted by tapering and you have a potential pension annual allowance of £40,000.

Previously, you may have been restricted by the tapered annual allowance and so you should review your pension arrangements and increase your contributions as appropriate.

If you have Threshold Income above £200,000 but Adjusted Income below £240,000
Your pension annual allowance will not be restricted by tapering and you have a potential pension annual allowance of £40,000.

Previously, you may have been restricted by the tapered annual allowance and so you should review your pension arrangements and increase your contributions as appropriate.

If you have Adjusted Income above £240,000 and below £300,000
Your pension annual allowance will be restricted by tapering. Your allowance will reduce by £1 for every £2 that your Adjusted Income exceeds £240,000 down to a pension annual allowance of £10,000.

If you have Adjusted Income between £300,000 and £312,000
Your pension annual allowance will be further restricted by tapering. Your allowance will reduce by £1 for every £2 that your Adjusted Income exceeds £240,000 down to a pension annual allowance of £4,000.

Previously, the minimum pension annual allowance was £10,000. This means that you should review your pension arrangements and decrease your contributions as appropriate to avoid an Annual Allowance Tax Charge.

If you have Adjusted Income above £312,000
Your pension annual allowance will be completely restricted by tapering and you will have a maximum pension annual allowance of £4,000.

Previously, the minimum pension annual allowance was £10,000. This means that you should review your pension arrangements and decrease your contributions as appropriate to avoid an Annual Allowance Tax Charge.

*This information is based on our current understanding of the rules for the 2020/21 tax year.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

The value of investments and any income from them can go down as well as up and you may not get back the original amount invested.

If you would prefer not to be contacted about the products and services we offer advice on, please let us know so we can update our records accordingly.

Am I still covered?
Providing you have paid your monthly premiums with your insurer, the cover we arranged remains in place and the terms of it are unaffected by the Coronavirus outbreak. If you have missed any recent payments, give us a call and we’ll do what we can to get you protected again.

If you have cancelled your policy in the recent weeks, it may be possible to have the policy re-instated. The exact terms for re-instatement vary by insurer, so please get in touch and we'll explore what is possible.

Can I take a premium holiday?
At the moment, insurers are not offering this same facility as lenders are doing - allowing you to defer premium payments. However, I am a member of the Openwork advisory network and they are currently in discussions with the major insurers on this issue. So it's possible that the position may change, but there is no guarantee that it will.

If you are in a position where you are worried about being able to afford your premiums, then please get in touch with with us as soon as you can so that we can explore what options may be available to you. I cannot, however, stress enough that whatever you do, you should keep your existing plan(s) in place and take advice before taking any further steps!

For obvious reasons, now is NOT the right time to be without cover. Cancelling your policy, with the expectation of reinstating it in a few months’ time when your income position is more stable, not only leaves you without cover at this critical time but would also mean you need to go through medical underwriting all over again. It is possible that insurer terms and conditions will also be tightened up in future, so you could also end up with an inferior policy to the one you currently have.

Will my insurer pay out if I die from Coronavirus?
The good news is that the vast majority of people who catch the virus go on to make a full recovery. If you were to die, then assuming the medical information you provided at the inception of the policy was correct, then the answer would be yes. Your insurer would, however, need to go through their normal claims process to confirm the claim is valid.

Will my insurer pay out for Critical Illness if I get Coronavirus?
Coronavirus is not a specified illness on Critical Illness policies and the view from most insurers is that the virus is unlikely to produce the permanent symptoms or impact on lung function required to meet the definitions evident on policies.

As stated above, the evidence from around the world is that the vast majority of people recover fully from the virus, therefore it is not an on-going critical illness. If you were unfortunate enough to die, then you would be covered. Insurers will, however, assess individual cases on their merit and will always seek to be fair in their assessment.

Will my insurer pay out on my Income Protection policy if I cannot work as a result of Coronavirus?
If the definition of disability is met as a consequence of the Coronavirus, or its impact on underlying or existing conditions, then we would expect the income protection claim to be paid. Most policies do have deferred periods (i.e. a period, usually 1, 3 or 6 months) before which a payment is made.

Will the redundancy cover in my Mortgage Payment Protection policy pay out if I cannot work as a result of Coronavirus?
We would expect that any claims for unemployment will be paid for existing customers. However, temporary or voluntary redundancy or a reduction in working hours by your current employer, is unlikely to be covered.

Can I take out a new policy or increase my Cover?
If you're looking to take out cover or increase your cover levels, please do make contact at the earliest opportunity. Many insurers are tightening their medical underwriting to reflect the additional risk associated with the Coronavirus. However, all the insurers we deal with are still accepting new life, critical illness and income protection cases.

It is also worth pointing out that many existing policies will also allow cover levels to be increased without the need for additional underwriting.

The insurers we recommend have been carefully selected because we believe they are the very best in the UK market. Included in our assessment is the proportion of claims they pay out every year – which for all the insurers I recommend is very high. You can, therefore, be confident that they would deal with all claims fairly and pay all valid claims.

Can I also remind you of the Support Services available on many protection policies, including in many cases remote access to GP services. Please refer to your policy booklet to check exactly what services you have and how to access them.

I know that for many people these are worrying and uncertain times, so I hope that the information I've provided here is helpful and may answer at least some, if not all of the queries and concerns you may have. However, if it raises any additional questions or you are still worried, then please don't hesitate to get in touch with me.