Thursday 30 January 2014
Wednesday 29 January 2014
Brewin Dolphin Welcomes Campaigns to end the 'Pensions rip off'
Discrepancies between the best and worst annuity deals on offer could cost you as much as £100k.
Following Pensions Minister Steve Webb’s recent suggestion that pensioners should be given the power to switch annuities and the campaigns launched recently by the Financial Services Consumer Panel and The Sunday Times – to name only two, wealth manager Brewin Dolphin hugely welcomes all initiatives to find a better deal for savers.
Brewin has underlined the importance of shopping around and seeking professional advice when choosing your annuity. Having spoken to four of the major pension providers, Brewin Dolphin has found considerable disparities between the best and worst annuities quoted for the same typical 65 year old single male.
We surveyed the following Life companies: Canada Life; Legal & General; Standard Life and Prudential, for this study and they all quoted for the same client (see table at the foot of this article).
Life companies rates do change almost daily – hence the need to get good professional advice with deep industry knowledge.
Nicholas Fitzgerald, Head of Financial Planning at Brewin Dolphin, commented: "Anything and everything should be considered in the quest to improve the returns from Annuities or to find an alternative. Since the banking crisis and the advent of QE – Annuity rates have dropped to pitiful levels – and we have advised very few clients to purchase annuities in the last few years, instead recommending drawdown.
"So Steve Webb's idea of a secondary market should not be dismissed out of hand. We must all think hard about improving returns from pensions for an ageing population, and his innovative idea is full of good intentions. Deciding whether to buy an annuity is one of the biggest financial decisions most of us will ever make, and in the meantime it is essential to get professional advice and to shop around, since your annual income from your annuity could vary hugely depending on which provider you choose. The real tragedy in the example above is that you could be over £100k worse off just by accepting the first offer and not seeking advice, which of course is something we can all do something about…”
With regard to the Annuity Directory concept as a way to avoid the cost advice; looking at the differential quotes above from three major annuity providers for the same client – we can’t stress enough the false economy this would be and the need for professional guidance – even if it is the only time you ever pay for it. ‘You wouldn’t perform open heart surgery yourself, and this could be a life and death decision – or certainly the difference between a comfortable or a miserable retirement.”
Tuesday 28 January 2014
Dorset developer is UK runner-up for creating exceptional homes
Dorchester-based
independent developer C G Fry & Son announce Poundbury development site manager
Steve Walker has been revealed as a national runner-up as the house building
industry celebrated its heroes at the NHBC ‘Pride in the Job’ Awards. This is
the only UK competition dedicated to recognising the exceptional people on the
ground who oversee housing projects from start to finish.
 |
| Al Murray – aka. “The Pub Landlord and Mike Quinton, NHBC Chief Executive present Steve Walker of C G Fry & Son with his award |
Steve (54) from the Dorset
village Sydling St Nicholas, was rewarded for achieving the highest standards
in all aspects of house-building, taking pride in everything from the wellbeing
of his team to the satisfaction of new homeowners as well as quality
craftsmanship, judged at every build stage.
He was awarded the Runner-up
title in the Medium Builder category during a glittering gala awards ceremony
in London, hosted by celebrity comedian Al Murray – aka “The Pub Landlord”. The
Awards have been run by NHBC (National House-Building Council) – the UK’s
leading warranty provider and standards setter for new-build homes – for over
three decades, and have been instrumental in driving up standards in new home construction.
Steve
Walker, Site Manager Poundbury – C G Fry & Son says: “I am delighted to have won this award
and accept it on behalf of my loyal team and C G Fry; as I could not have
achieved this recognition without their support. In my work, I enjoy challenging designs and
seeing the end results, of good quality. I bring 37 years of experience, a keen
eye for detail, and treat every property as though it’s my own.”
Steve has worked for C G Fry
& Son for 22 years and won three previous Pride in the Job Awards for his
works at the prestigious Poundbury development in Dorchester for The Duchy of
Cornwall. He was one of five Supreme Winners and five runners-up announced at
the gala event in the competition’s various builder-size categories.
Kevin
Murch Construction - Director C G Fry & Son comments: “As a company we are extremely proud that
Steve has been publicly recognised with this high profile industry accolade which
is well deserved. The ethos of C G Fry & Son is to consistently strive to
build high-quality developments across the South West region with attention to
detail. Each of our site managers, and
their teams share these values which is reflected in the quality of their
work.”
The NHBC comment that new
homes today are built to higher standards than ever before, and are highly
energy efficient, which saves homeowners money.
Mike
Quinton, NHBC Chief Executive, congratulated Steve: “Steve should be incredibly proud. He’s
beaten around 15,000 other site managers to get to this point, putting him in
the top one percent of his profession. It’s a fantastic achievement that proves
that the homes Steve is producing are of an exceptional standard. Prospective homebuyers in the Dorset area can
do little better than to book in a viewing at Steve’s Poundbury site in
Dorchester, which has been judged by NHBC and independent industry experts to
be among the very best in the UK.”
www.cgfry.co.uk
www.cgfry.co.uk
Monday 27 January 2014
Thursday 23 January 2014
Professionals Raise Money Towards New Outdoor Play Equipment For Deaf Academy Students
Local Wealth Management Company Brewin
Dolphin Exeter hands over a cheque for £2,500 to its first ever Charity of the
Year, Exeter Royal Academy for Deaf Education.
The funds raised through a series of events over the last 12 months are being
earmarked for new outdoor play equipment for primary-age students when the
charity moves to its new Exeter site.
 |
Richard Pike Brewin Dolphin Head of Charities South and
South West and Ros Way Principal of Exeter Royal Academy for Deaf Education
with Deaf Academy Primary Students Isaac Wilson and Oliver Elliot-Chorley both
aged ten
|
Exeter Deaf Academy is building an inspiring new Academy, designed with
and for Deaf children with capacity to take up to 180 students in its
pre-school, primary school, secondary school and college. It has full planning permission on the new
site in Ringswell Avenue which is due to open in September 2016.
Richard Pike, Brewin Dolphin Head
of Charities South and South West says: “The Deaf Academy was selected as
our first ever ‘charity of the year’ and commenced in January 2013. The relationship has not only been about
raising much needed funds, but also awareness for this local worthy charity and
all of the Brewin Dolphin staff have got fully involved. We launched the charity of the year by
organising a visit for ten Deaf Academy students to meet the Exeter Chief’s
first team at Sandy Park which included a guided tour and question and answer
session which proved very successful. I am delighted to hand-over a cheque for
£2,500 which will go towards buying outdoor play equipment for the primary
students when they move to their exciting new academy.”
Jonathan Farnhill, Chief Executive
says: “We have been really pleased
with the support from the local business community this year. Brewin Dolphin
has been one of the early supporters of the new Academy and we will be looking
for the support of more local businesses over the next two years as the plans
take shape and we launch our fundraising campaign next year.”
New Exeter Health Screening Company Detect Early Stages Of Breast Cancer
Local woman, Catherine Fraser has
become the first client of new Exeter business Thermalogica to be diagnosed
with breast cancer following abnormalities revealed on her Thermal Imaging
scans. Thermalogica launched earlier this
year, and provides a ground-breaking health screening service to clients at
various venues across the South West. Exeter-based
business partners Terri Bainbridge and Lisa Portman offer revolutionary Digital
Infrared Thermal Imaging (DITI) which detects heat to measure the physiological
activity in the body using a sophisticated camera to create a map or thermal
fingerprint of the infrared patterns within the body.
 |
| Catherine Fraser |
Still relatively new to the UK, Thermal Imaging is widely established
throughout America and some parts of Europe and is supported by 30 years of
research and over 8000 published medical studies. Thermal Imaging is used as an aid for
diagnosis and prognosis for various health issues including strokes, heart
disease and cancers. The thermal scans
also provide an insight for people who have incurred injuries and wish to
monitor their rehabilitation. This non-invasive
procedure is painless and emits no radiation therefore it is safe for use on
children. Images are taken by Terri and
Lisa; both fully trained clinical thermographers before being sent via a
secured server to a professional group of physicians trained in the protocols
of reading thermal images. A full medical report is then produced by the dedicated
team of doctors who are registered Thermologists. The images are archived in a
secure data base and future scans are compared to the earlier images to monitor
any changes over a period of time.
Following a series of breast scans, which showed abnormal activity and
upon the advice of Thermalogica, Catherine aged just 46, took her report and
images to her Doctor and was referred for a mammogram and ultrasound – a biopsy
confirmed she had breast cancer. She comments: “I have agreed to go public with
my story in the hope that more women will contact Thermalogica for thermal
image scans.”
Catherine’s story:
“It seems strange to be writing as being
a success story because of a diagnosis of breast cancer – but thanks to the
early detection of changes happening in my breasts through thermal imaging, I
have become Thermalogica’s first “win”. Thermalogica recently opened in Exeter,
and offers thermography to detect physiological changes (shown up as heat
activity) in the body and is run by Terri Bainbridge and Lisa Portman.
My connection with Terri goes back
a couple of years, when, as a writer for a local newspaper, I did the first
interview with her about her own struggle with breast cancer which was
happening at the same time as she and her husband, Sam, received the
devastating diagnosis that their four-year-old daughter, Billie, had an
inoperable brain tumour. Terri was a
friend of a friend and while the family’s first instinct – understandably - was
to not do an article and to try and raise the money to send her to America for
pioneering treatment themselves, I knew that if we could get the story out
there, people would take this family to their hearts. And boy did they! After the first interview
was published, the story was picked up by other local and then national media
and the ‘Billie Butterfly Fund ‘ took wing and soon raised enough money for her
treatment, even getting people like comedian Peter Kay involved.
There was, sadly, to be no happy
ending for Billie, who died almost a year to the day after her diagnosis, but
Terri, a self-confessed “research geek” continued to battle for more
information on cancer, its early diagnosis and ways to combat it. So when she sent a Facebook invitation to her
friends offering us a special opening offer on a scan, I jumped at the chance.
In my forties, I am still some distance from the age to be invited for
mammograms by the NHS and as I had been going through some cyclical lumpiness
and pain over the preceding couple of months – all part of the winding down
process, I thought - I signed up.
The scan was taken at the relaxing and
comfortable Radiance MediSpa located near Exeter Central. The first scan came back showing some
heightened thermal activity, which the doctors said could be normal fibrocystic
changes, but recommended a repeat in three months. The notes which accompanied
that repeat scan suggested I made a doctor’s appointment for clinical evaluation.
My GP could feel nothing out of the
ordinary, but referred me to the breast clinic at the RD&E to be sure.
Government guidelines mean you get
seen within two weeks, so I turned up expecting to be checked over and sent
home: there is no history of breast cancer in the family, I had no hard,
pea-sized lumps – surely it was just a routine appointment.
A couple of hours’ later, when I
was having a biopsy in the ultrasound department after a mammogram, it began to
dawn on me that this wasn’t routine. I quizzed the radiologist on what he was
looking at on the screen. He told me that it wasn’t easy to see exactly what it
was, but he “wouldn’t fall off his chair” if the biopsy came back as cancer.
And, indeed, it did. In both
breasts, which apparently is quite common in the type of cancer I have, lobular
carcinoma. This type – and who knew there were so many different ones –
accounts for around 10% of all breast cancers and doesn’t present as a hard
lump, just more a feeling of thickening tissue, which is difficult to
differentiate from normal ageing changes.
At the start of next month (note:
Dec) I am going for a double mastectomy, with reconstruction surgery being done
at the same time. The care I am receiving from the RD&E is fantastic: the immediate
mastectomy choice was mine – I didn’t fancy six months of chemo beforehand as I
don’t want to have to live with my cancer for that time, nor lose my hair in
the winter - but I have felt nothing but fully informed and supported in my
choices all the way.
I am also in the fortunate position
of having an extremely supportive employer in Exeter City FC – I work for the
Football in the Community department – and the club have become extremely
interested in the work of Thermalogica and the application of thermal imaging
in the area of sports injuries.
There is a strange sort of symmetry
in my original interview with Terri and the position I find myself in today.
Although the Billie Butterfly campaign didn’t have the happy ending we all so
desperately wanted, that connection I made with Terri which led me to
Thermalogica has made my story a positive one. Not to put too fine a point on
it, it has saved my life - which is a success story in anyone’s book.
Thanks to the early detection of my
breast cancer, my prognosis is extremely good, but had I waited a few years
until I was called for a mammogram, things could have been very different
indeed.
I’m not much of a one for hidden
meanings and symbolism, but the day I got home from the hospital after making my
decision to have the surgery and was brushing my hair at the dressing table, a
butterfly landed on the bedroom window sill.”
www.thermalogica.com
Chartered Accountants Haines Watts Exeter showcases its new branding of
the Crediton Office, formerly known as Ocean Consultancy, following the
practice merger which took place earlier this year.
 |
Terry Brydes / Alex Armstrong / Becky Gibson / Sarah
Chalmers / David Park Partner
|
A national network established over
80 years ago, with more than 50 offices, each Haines Watts office operates
independently offering a wide range of services tailored to the local
market. The local office primarily
focuses on providing accountancy and taxation services to owner-managed small and
medium-sized entities and dealing with private client tax affairs across the
South West.
David Park – Partner Haines Watts
Exeter says: “The strong Haines Watts
brand is very distinctive and we certainly won’t be missed in the square! Being part of this well-respected national group
enables us to continue to give a great local service with access to specialists
across the UK when required. This means
that we are competitively priced because our clients do not pay for the
specialists unless the need arises but the resource brings peace of mind.”
And it’s a double celebration as the expanding Crediton office welcomes newly
appointed professional student, Becky Gibson who is studying for the ACCA
qualification. This increases the small
and friendly team to six members who are all local with over 80 years’ of combined
experience.
David Park – Partner Haines Watts Exeter says: “It has been a very exciting six months following the merger which has
really motivated the team and we are delighted that Becky has joined us. We are a progressive and proactive firm; getting
to know our clients and their business means we get results. Our clients generally run successful
businesses and we are here to build on this with them developing business and
taxation strategy.”
Purchaser In Their New C G Fry & Son Home Within Just Eight Days Of Viewing
C G Fry & Son has completed on
the sale of a detached property at Balidon Place, their award-winning Yeovil
development, within just eight days from the purchaser’s first viewing. The new
owners visited the site on the Tuesday and reserved the detached house the very
next day. Legal completion was achieved
by the following Friday and the family moved in on the same day and are now
looking forward to spending Christmas in their beautiful new home.
The last few remaining properties located
on the desirable West Coker Road which is convenient for the town-centre and
local facilities, range from an apartment at £175,000 to three, four-bedroom
houses at £380,000- and a larger detached house at £430,000.
All detached houses have double
garages and are built in a traditional style with Georgian proportions and
varying architectural detailing. Balidon
House, the former Yeovil Maternity Hospital has been painstakingly restored to
its former glory and has a spacious ground-floor two-bedroom apartment for sale
with two allocated parking spaces.
C G Fry & Son also offer Fern
Green, Langport - a development of detached, semi-detached and terraced homes
reflecting the character and charm of this rural area of Somerset.
Local firms get into the Christmas spirit for charity
Two local professional firms
joined forces to organise two seminars which raised monies for ‘Stop Abuse For
Everyone’ (SAFE). Haines Watts Forensic,
a national chartered accountancy firm and professional chartered financial
planners and wealth advisers Towry, held the joint seminars in central
Exeter. The events, aimed at family law
barristers and solicitors, focused on financial volatility during the divorce
process and offered solutions to the impact on clients’ financial settlements.
 |
Chris Thorpe, Tax Director - Haines Watts Chartered
Accountants/ Lisa Crockford, Associate Partner Haines Watts Forensic / Chris
Collier, Chair of Trustees SAFE and Eliana Sydes, Wealth Adviser
Towry
|
The
two events helped to raise money for Exeter-based SAFE with donations from
delegates individually match-funded by both Haines Watts and Towry to a total
of £400.00.
Lisa Crockford, Associate
Partner – Haines Watts Forensic says: “Haines Watts Forensic and Towry offer complementary
services during the divorce process and we quickly identified common issues we
face and the benefit of offering a joint seminar to local family lawyers. The seminars were well received and as a
result we are looking to roll out more events across the South West region in
the New Year. As a business we always
look to give something back to the local community and we are delighted to have
raised much needed funds and awareness for this worthy cause.”
The
majority of the monies raised will be utilised to buy Christmas presents for
the women and children accommodated in the Exeter Refuge which offers refuge to
victims fleeing domestic abuse. And part
of the proceeds will fund a special Christmas party for the dedicated charity volunteers
who missed out on a festive celebration last year because of lack of funds.
Mark Wilkins, wealth advice
manager, Towry says: “Given
Towry’s work in the area of financial planning for families, it is a natural
fit to join up with Haines Watts Forensic in providing these seminars,
which proved successful with local
professionals. It is fantastic that the funds raised at the seminars for SAFE
will help abused mothers and children in Exeter and the surrounding region.”
Stop Abuse for Everyone (SAFE) works with all affected by,
and experiencing all forms of domestic violence and abuse in Exeter, East and
Mid-Devon. The work of the charity is part
of a multi-agency strategy and is both effective and independent. 24% of the
total recorded violent crime reported to Devon and Cornwall police is domestic
abuse. It is estimated that every £1
spent on SAFE services, represents a minimum saving of £3.20 to the public
purse. SAFE’s Crisis/Helpline offers free and confidential support and every
year receives about 2,000 calls which increase significantly over Christmas.
Chris Collier, Chair
of Trustees SAFE says: “The charity was established
in Exeter 35 years ago and now has several services. Our Outreach team work in
Exeter, East and Mid Devon offering a range of specialist services while a
smaller team work alongside specialist police with high-risk victims. Our large
and welcoming Refuge has 11 rooms and is available 24/7, 365 days a year. This year, 71 women, 62 children and young
people escaping domestic violence were accommodated there. Christmas is a very
difficult time for these victims and I am so grateful to Haines Watts and Towry
for providing much needed funds and raising awareness of our services. We can now buy the children and the mothers,
who normally put themselves last, Christmas presents and inject some fun and
laughter into their lives.”
HLM Architects Plymouth announce promotion
 |
| Sian of HLM Architects |
Sian was promoted from Architect to Associate
on 1st October 2013, after being with HLM for 7 years and relocating from the
London office to Plymouth in August 2012. Since relocating to
Plymouth, Sian has expanded her experience in education, healthcare, defence,
residential and commercial projects. She is an active member of South West
Women in Construction and attends various regional Building Forum events.
Sian supports Ajay
with the running of the office and is passionate about promoting a Œfamily
ethos¹ within HLM and the industry. She helps develop the next generation by
giving talks at a local school about work experience, offering to help with
mock interviews at Plymouth University as she did at Portsmouth University
before relocating, and mentoring architectural students. She is undertaking the
CMI Level 3 Coaching and Mentoring course.
Now, as an Associate
for HLM, her ambitions for the future is to help
Ajay develop and grow the Plymouth office, building a creative, efficient and
quality team; and gaining recognition for quality architecture in the region.
Rural consultancy hosts Cowsignals training day
A bespoke Cowsignals® workshop organised by
Haines Watts Rural Business LLP attracted 50 dairy farmers from across Devon
and Cornwall. The basis of Cowsignals® is observing the cow’s body language and
translating it to management. It lays a solid foundation for the management of
farms and helps to demonstrate how to monitor and improve management to ensure
that farmers and cows are achieving optimum health, performance and welfare on
farms.
 |
| Lucy Thomas Haines Watts Rural Business / Emily Bates Cornish Mutual / Mike Feneley Haines Watts Rural Business / David Wilde Certified Cowsignals Trainer / Bruce Forshaw Harpers Home Mix |
The special
training day sponsored by Cornish Mutual and Harpers Home Mix Ltd with funding
accessed via Healthy Livestock, was held at Shernick Farm, Bridgerule in
Holsworthy, a family partnership of Husband and wife Trevor and Ingrid Bray and
their son Richard with a total dairy herd of 350 cows.
The Cowsignals® concept developed by Jan Hulsen and
Joep Drissen of training company Vetvice based in the Netherlands is active in
over 45 countries. The basis of the
training is to observe cow’s body language and translate it to management to
help prevent disease and have happy cows.
Haines Watts Rural Business appointed David Wilde a
Ruminant Nutritionist and Product Manager for Massey Feeds, sister firm to
Harpers Home Mix Ltd, as the trainer for the day.
A Cowsignals® master trainer for over two years David’s
full-day training included both theory and practical exercises for the farmers. The group looked at cows, and David demonstrated
where farmers can learn to pick up the cow’s signals and use them
effectively.
David Wilde, Certified Cowsignals® Trainer says: “The concept was
devised in 1997 by Dutch vets as a tool for dairy farmers to reassess and
revaluate their herds and look at what they are telling us. Over the last 4 – 5 years it has moved at a
rapid pace worldwide and is now in trained in nearly 50 countries. It gives a fascinating insight
into what the cow is telling us and what small changes may make a world of
difference to her. Cows give out signals
all the time about the environment in which they are living and whether they
are happy or discontent. Cows don't know
how to lie and the purpose of the training day was to educate farmers to recognise
the host of signals they give and to recognise how they are feeling. Farmers can then interpret this body language
and act on it. An example is are we
doing the best we can in the housing area during winter to mimic the natural
and healthy outdoor environment? Content
and comfortable cows who are eating well provide better milk and higher
fertility, which is something farmers should take very seriously.”
Haines Watts Rural Business LLP provide a unique
combination of agricultural and financial expertise to rural business in the
South West. The firm offers both personal and business support to managers and
owners to develop and put in place tailored farm strategies, annual plans and
improvement projects together with technical advice.
Lucy Thomas, Farming Consultant – Haines Watts Rural Business LLP says: “We wanted to organise this special event to give
our farming clients the tools they
need to do their job more effectively and help to have a more profitable
business as a result.. The invaluable training
and expertise given by David means that they will have healthier and more
content cows which in turn will increase the milk yield and help them to make
more money and grow the business. It was
also a great way of bringing our farming clients together to share their own
knowledge and experience. The feedback
has been very positive and it has proved to be a very successful and worthwhile
day.”
One of the farmers who took part in the training
was new business owner, Jim Tucker of Larrick Farm based in Launceston. A former dairy farmer he gave up the original
business in 1999 when interest rates were high and has been a part-time farmer and
builder for the last 12 years. Six
months’ ago he set up a new dairy farm business with 60 cows and uses the
revolutionary Robotic Milking System which works 24/7 which means he can monitor
the milking remotely as any problems are texted to him on his mobile phone.
He says: “I
am fortunate in that as a brand new business I have a modern and high-spec farm
and it was reassuring to find that many of the infrastructures and practices I
have put in place were recommended by David Wilde to create the right
environment for a happy herd. I really
enjoyed the training day and to have an expert guide us through what signs we
should be looking for. It was also very beneficial
to come and see a large and successful working farm and share experiences with
other farmers.”
www.hwca.com/agricultural_consultants
Pension Minister’s idea should not be dismissed out of hand as Brewin Dolphin highlights the importance of shopping around for your annuity
Discrepancies between the best and worst annuity deals on offer could
cost you as much as £100k
8.1.14: Following Pensions Minister Steve Webb’s recent suggestion that pensioners should be given the power to switch
annuities, wealth manager Brewin Dolphin has underlined the importance of shopping
around and seeking professional advice when choosing your annuity.
Having
spoken to four of the major pension providers, Brewin Dolphin has found
considerable disparities between the best and worst annuities quoted for a
typical 65 year old single male.
For
example, the difference between the best and worst annuities available to a 65
year old single male with a £300k pension pot and a further 18.3 years
to live is £3391 p.a. (£17,769 vs. £14,378), which equates to £62k in
total.
The
difference between the best and worst annuities available to the same male with
a £500k pension pot is £5652 p.a. (£29,638 vs. £23,986), which equates
to £103k in total.
Note
that no special circumstances have been considered, which could make this
difference considerably greater.
Nicholas
Fitzgerald, Head of Financial Planning for Brewin Dolphin, commented:
"Steve
Webb's idea should not be dismissed out of hand. We must all think hard about
improving returns from pensions for an ageing population, and his innovative
idea is full of good intentions. Deciding whether to buy an annuity is one of
the biggest financial decisions most of us will ever make, and in the meantime
it is essential to get professional advice and to shop around, since your
annual income from your annuity could vary hugely depending on which provider
you choose. The real tragedy in the example above is that you could be over
£100k worse off just by accepting the first offer and not seeking advice, which
of course is something we can all do something about…”.
www.brewin.com
www.brewin.com
Brewin Dolphin’s top 10 Investment thoughts for 2014 and other tips
Brewin Dolphin is one
of the leading wealth managers in the UK with over £28 billion of funds under
management for more than 100,000 clients
“……..our
greatest fear for 2014 is the absence of fear itself!”
1. David Nicol - Chief Executive foresees
a tight race over Scottish Independence and warns about complacency. There are
a number of critical issues including the currency to be debated and many
questions to be answered. We will be
formally asking the Scottish Government about the reach of their proposed
regulatory institutions for financial services in Scotland and their
implications for clients.
2. Stephen Ford – Group Head of Investment
Management said: Gold is likely
to drift lower and I expect it to trade through $1000 per oz over the next
12-18 months. A reduced level of QE from the US central bank should see longer
dated interest rates rise and raise the opportunity cost associated with
holding the yellow metal. What is more, as the global economy continues to
improve, so the investment community will be less compelled to own safe haven
assets.
Europe remains cheap, unloved and
under owned, and for those with ambition and a huge appetite for risk, you may
want to look at Greek equities in 2014 (Alpha ETF FTSE Athex Large Cap). For a
more measured approach, the enforced consolidation within the banking industry
makes Europe generally look particularly interesting and I am pleased this
opportunity has been recognised by both Neptune European Opportunities and
River & Mercantile World Recovery – two funds our Head of Fund Research is
recommending for next year.
3. Rob Burgeman, Director Investment
Management
“If 2008 was the perfect storm
for investors, with just about every asset class falling, 2014 is shaping up to
be its antithesis – the perfect calm.”
The economic environment looks
stable and improving, central banks seem reluctant to choke off any nascent
recovery, leading to a continuation of the ultra-low interest rate world and
the fifth anniversary of base rates below 0.5%.
With a general election in the UK looming it makes any major negative
fiscal changes unlikely in the short term and providing – at long last – some
welcome stability for longer term investors.
The burgeoning recovery in the US
should continue and the early glow on the European economic horizon might just
be signs of a dawning recovery rather than rioting Athenians. Even the Middle East seems to be slowly defrosting
with the Iranians finally negotiating on the nuclear issue.
The background, then, is
conducive for investors and is reflected in our expectations of decent returns
for equity markets – particularly developed ones – over the year ahead. Perhaps, our greatest fear for 2014 is the absence
of fear itself!
4.
Guy Foster, Head
of Portfolio Strategy – forecasts the FTSE total return could deliver
17%........
FTSE 100 to reach 7,400 which with an average yield of 3.2%
is over 17% from here…. the S&P could make 1,900 and the Nikkei should
breach to 18,000. More - http://www.brewindolphinmedia.co.uk/media/press-releases-andcomment/2013/december/2013-12-13.aspx
5.
Nick Oliver,
Director of Financial Planning – make your grand-children millionaires
“Putting £300 a month into a
(grand) child pension could not only turn them into pension millionaires when
they retire, but during their working careers, they can use their fund for
commercial property, even if it is linked to their business. This will be good
for future entrepreneurs, lawyers, vets, plumbers and farmers – a fantastic
legacy for a potentially debt-laden generation,”
More
- http://www.brewindolphinmedia.co.uk/media/press-releases-andcomment/2013/december/2013-12-12.aspx
6.
Guy Foster -
Emerging markets will have their time - but it is not now. “Rising
transportation costs, deteriorating energy competitiveness and general
institutional malaise, makes the recent events in Thailand and the Ukraine be
likely themes for insecure countries in the new year. The World Cup in Brazil seems sure to be a
national embarrassment, making October’s elections there hugely uncertain – so
steer clear. Investors should focus on
more developed emerging markets where intellectual property rights are
entrenched: markets like Korea should
rebound well following their recent slowdown.
7.
Nick Oliver -
“April 2014 brings another fall in the Life Time Allowance for pensions, from
£1.5 million to £1.25 million,”
It is possible to keep a pension
pot limit at £1.5 million - but careful analysis is necessary to evaluate the
pros and cons of electing for this protection.
8.
Elaine Coverley
- “Capital appreciation – the watch words for
2014” “During times of austerity investors hunker down and focus on income,
but given the more benign global backdrop expected in 2014, investors should
shift their attention to capital appreciation over yield.”
9.
Guy Foster -
Investors should capitalise on Japan’s extraordinary inflationary policies
“The yen is falling to 120 to the
dollar; whether it gets there in 2014 remains to be seen, but we expect these
extraordinary policies pursuing inflation to remain potent forces of value
creation for investors.”
10.
Iain Armstrong -
Oil and Gas Analyst - Time to end four years of hurt “Fuelled by a new
sense of prudence in capital spending plans and supported by relatively strong
oil and gas demand, we think that investor confidence in the sector will return
in 2014.”
Finally, a possible Christmas
present for banking enthusiasts and which may just come true is The Bankers’ New Clothes’
according to Ed Salvesen, Brewin Dolphin
Banking Analyst– a superb read regarding the impact of increased capital on
economic growth and a true proponent of the higher equity story.
For our Top 12 Stocks and Top 6 Funds – see
below
Brewin
Dolphin’s favourite stocks for 2014
1.
DIRECT LINE –
rescue your income shortfall with Direct Line’s potential 40% dividend growth -
Direct Line could yield 8.9% in 2015 as it cuts costs and can afford to pay out
more of its earnings due to its strong and improving capital position.
Management incentives are aligned with large share options vesting if it hits
its targets. Direct Line IPOed successfully in 2012 and is the largest provider
of motor and home insurance in the UK. (Nik
Stanojevic, equity analyst)
2.
CAIRN –
significant upside potential to net asset value from major exploration
programme in the next year, starting with offshore Morocco. (Iain Armstrong, equity analyst)
3.
NESTLÉ -
After a difficult 2013, we believe things are looking up for Nestlé. Firstly,
the loosening of the Chinese one-child policy is good news for its Infant
Nutrition business. Furthermore, it is undertaking a portfolio restructuring
exercise; it recently sold its 10% stake in Givaudan and in April 2014 it might
decide to sell its 29% stake in L’Oreal back to the company. What will it do
with the money? Further acquisitions in the Nutrition space are likely, but
shareholders could welcome a return of cash. (Nicla Di Palma, equity analyst)
4.
BG GROUP -
Return to positive free cash flow in 2015 due to a more than tripling in
production from Brazil and the completion of the Queensland coal to LNG
project. (Iain Armstrong, equity analyst)
5.
DRAX - As
Drax shifts from coal to biomass it will benefit from rising power prices and
the Government’s renewable subsidies; we expect double digit earnings and
dividend growth in 2014. Ironically Drax was one the UK’s largest carbon
emitters but after refitting its generators will become one of the UK’s largest
renewable generators. (Elaine Coverley,
head of equity research)
6.
PRUDENTIAL -
Life insurance can be a dull sector but we believe that Prudential’s
significant exposure to a rapidly growing middle class in Asia makes it one of
the best placed insurers globally. (Ruairidh
Finlayson, assistant director-equity analyst)
7.
INDITEX - With
tentative signs of recovery among European consumers, a strongly fashionable
offering with good cost control and low markdowns, Inditex is likely to do well
in 2014. The increasingly attractive homeware offering and the incredible
potential coming from the
underpenetrated US market, should drive its revenue and margin growth. (Nicla
Di Palma, equity analyst)
8.
NEXT - 2014
should be another good year for Next. Growth in retail stores remains subdued,
but Directory sales continue to boom.
Homeware should drive sales growth in the year to come and the strong
free cash flow generation is likely to mean further buybacks in 2014. (Nicla Di Palma, equity analyst)
9.
TELECITY - is Europe’s leading provider of premium
carrier-neutral data centres, has underperformed of late due to UK growth
worries and botched interim results but we believe it can turn this around with
the hiring of a “FTSE 100 quality” Finance Director and an improvement in its
markets, driven by the ever increasing need for connectivity in key internet
airports. (Ruairidh Finlayson, assistant
director, equity analyst)
10. G4S - New management and a new
approach, led by a forensic examination of all contract performance, an
increased focus on organic revenue growth and sustainable free cash flow. (Iain Armstrong, equity analyst)
11. INTER CONTINENTAL HOTELS GROUP –we
believe the long term growth story remains very much intact. There have been a
few disappointments in recent results but we would argue that this is a long
term positive as it shows that management has been willing to forgo growth to
protect the brands, which are the most important element of the investment
case. IHG has a 6% market share and a 15% share of the global pipeline of rooms
so we believe that it is reasonable to believe that it can continue to gain
market share. It is already the largest hotel chain in China and has an
impressive pipeline of hotels in Tier 1, 2 and 3 cities. We continue to like
its long term fundamentals with an impressive exposure to both the US and China.
(Ed Salvesen, equity analyst)
12. HAMMERSON shares can be bought on a 12%
discount to forecast net asset value and offer a dividend yield of 3.8%. This
looks a bargain in a January sale! Shopping is moving forward as the malls aim
to become venues for a whole family day out, with eating, entertainment and
free parking some of the additional attractions now being offered. Thus, we
believe that retail is not dead. After all, retail rental values are now
beginning to increase after 25 months of falling values. Hammerson has some
significant developments in hand at Croydon, Leeds and Brent Cross, all of
which are due to start in 2014. Add in its interest in the hugely successful
European Retail Villages (which includes the Bicester designer outlet) and new
large shopping malls in Paris and Marseilles in France and the story gets
rather interesting. (Stephen Williams –
equity analyst)
Brewin Dolphin’s top 5 funds by Ben Gutteridge, Head of Funds Research
Despite an improving growth
outlook, a benign inflationary environment should afford the developed world’s
major central banks the flexibility to maintain accommodative monetary policies
throughout 2014. Though valuations are no longer outstandingly cheap, this is a
very powerful tailwind for higher risk assets such as stocks and lower quality
bonds.
For that reason we are
recommending an equity fund in the UK, US, Europe, and Japan. We are also
recommending a sector specific bond fund that should be able to enjoy absolute
returns, despite the headwinds of rising bond yields.
We are not making a
recommendation in Emerging Markets. Though this asset class may well be pulled
along by the better performance from developed markets, the region still faces
many challenges. Issues the asset class must contend with include the
adjustment to a less commodity intensive growth path for China, as well as the
initiation of US monetary policy normalisation; the former impacting national
revenues, and the latter increasing the cost of funding.
6M
|
1 Year
|
3 Years
|
|
River and Mercantile UK Equity Smaller
Companies
|
28.19%
|
59.23%
|
114.25%
|
FTSE Small Cap TR
|
10.85%
|
35.55%
|
56.58%
|
Neptune European Opportunities
|
8.19%
|
24.44%
|
29.22%
|
FTSE World Europe ex UK TR
|
6.83%
|
26.87%
|
35.83%
|
Old Mutual US Dividend*
|
0.55%
|
N/A
|
N/A
|
S&P 500 TR
|
3.58%
|
27.48%
|
55.13%
|
Schroder Tokyo Hedged**
|
N/A
|
N/A
|
N/A
|
Topix TR
|
11.78%
|
64.16%
|
56.24%
|
Invesco Perpetual Global Financial
Capital***
|
5.61%
|
19.83%
|
N/A
|
Markit iBoxx Sterling Corporates TR
|
‐0.51%
|
3.07%
|
25.47%
|
River and Mercantile World Recovery****
|
20.62%
|
N/A
|
N/A
|
MSCI World TR
|
2.87%
|
22.52%
|
37.03%
|
*New management began in April 2013
**GBP Hedged share class launched in July 2013.
Original fund launched in 1981
*** Fund launched in November 2012
**** New management began in April 2013
1. UK – River & Mercantile UK Smaller
Companies
This fund is managed by Daniel
Hanbury who uses the firm’s PVT (Potential, Valuation and Timing) philosophy to
manage assets. We are quite surprised that this fund, at around £50 million (at
September 2013), has not attracted more assets. This is all the more so as its
impressive performance has been underpinned by strong stock selection and
sector allocation, which stands testament to River & Mercantile’s robust
investment process.
2. US – Old Mutual US Dividend
This fund is managed with a value
bias and, therefore, invests more heavily in areas such as industrials and
financials. These sectors trade more cheaply due to their volatile earnings
stream, however, as confidence in the recovery becomes more entrenched, we
expect them to outperform.
3. Europe – Neptune European Opportunities
Though we do not expect much in
the way of GDP expansion next year from Europe, even a modest improvement in
revenues would translate into meaningful earnings growth. This is a result of
lean workforces significantly dampening operating costs. The Neptune fund,
managed by Rob Burnett, has had a challenging couple of years as European
economic performance disappointed, however, given our marginally more positive
outlook, is well placed to benefit in 2014.
4. Japan – Schroder Tokyo GBP Hedged
As Japan continues to make modest
strides towards meeting its inflation target, we believe the Japanese
authorities will continue, unrelenting, with their current course. This means
further reform efforts from Prime Minister Shinzo Abe, but also more
(offsetting) accommodation from the central bank. This combination should prove
supportive for Japanese risk assets, however, it is not likely to be a
favourable one for the yen. As a result we would recommend Schroder Tokyo GBP Hedged.
Managed by the vastly experienced Andrew Rose, this fund is currency hedged and
exhibits a marginal value bias, investing in the parts of the market most
sensitive to broad economic recovery.
5. Bonds – Invesco Perpetual Global Financial
Capital
We suspect next year will be a
challenging one for generic bond funds as longer dated interest rates continue
to creep upwards. As a result, our top pick within the bond fund universe is
structurally positioned to cope in this environment. The Invesco Perpetual
Global Financial Capital fund invests across the capital structure within the
Financial sector, including senior bonds, subordinated debt, and even
equity.
There are a number of variables
that should allow this fund to deliver next year. If, as we believe, longer
dated interest rates are rising due to better economic growth, the asset
quality of Financials’ balance sheets should also improve. Furthermore, the
improved margin from making additional loans, whilst deposit rates remain
firmly anchored, will be earnings enhancing.
We must point out, however, that this bond fund will perform poorly if
economies experience a negative, or deflationary, shock. All five of these
funds, therefore, are firmly risk on and do not constitute the makeup of a
‘balanced portfolio’.
6. Spicing up 2014 Portfolios
For those seeking to add even
more risk into portfolios, we would suggest investors consider the River &
Mercantile World Recovery fund. This fund is as purer play on global recovery
as one is likely to find, with Europe and Japan dominating the exposure. More
broadly this strategy invests in out of favour areas within the market, and
that stand to benefit the most from an improved global environment. Companies
are not selected on valuation grounds alone, however. A catalyst for a rerating
must also exist, such as management change or industry consolidation.
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