Financial supplement2014 by Barrister Magazine

the barrister

Personal Finance & Wealth Management Supplement COLOMA_Wilby ad 20/08/2014 8:24am Page 1

By Listening

Based on our experience at OCM Wealth Management we would always recommend that every client needs all three of those services and a Discretionary Asset Manager to ensure your mandate is followed, not that of a Fund Manager. That in itself causes problems because if you bring all of the services together it causes duplication of charges, the different elements not being integrated and sometimes overlapping and conflicting advice.

OCM Wealth Management has over the last ten years specialised in bringing together the services of an IFA, with that of a Tax Adviser and having an integrated Investment Manager with Discretionary Investment powers because we recognised every client needs all of these services together not them individually. We offer a singular team based approach with one single transparent charge for our clients designed to alleviate all of the problems associated with bringing the individual services together. The reduction in charges by having everything together under one roof, but Independent, is significant and in many instances reduces the overall client charge by up to 50% on an annual basis, when compared to the traditional client model of disconnection and individual services provided by the IFA, Platform, Discretionary Fund Manager and Tax Adviser. As an example please refer to the chart below.

Investor Profile Ongoing Charges Comparison Resource Used

DIY

Typical IFA with Platform

OCM

IFA + DFM with Platform

Underlying Portfolio

1.50%

0.60%

0.80%

Platform

0.00%

0.25%

IFA / FA

0.00%

DFM Total

INVESTMENTS

MORTGAGES

CORPORATE SERVICES

INSURANCE

LIFE ASSURANCE

OUTCOME BASED INVESTING IS OUR USP!

Independent Financial Planners | Discretionary Asset Managers | Tax Advisers

For example, how do you know whether you need the individual services of an Independent Financial Adviser (IFA), a Personal Tax Adviser, an Investment Manager, or all three together?

PENSIONS

What Makes OCM Different

Wealth Management

0.75%

1.00%

0.00%

1.00%

1.50%

1.60%

2.05%

3.05%

OCM fee includes IFA, DFA Tax Advice and ongoing advice all in the annual IFA fee - £1m+ client

Over the last 10 years we have listened to what our clients want from Wealth Management and the answer is always simple, “Clarity” in strategy “Value” as regards to charges and “Delivery” on performance. We have answered above the value proposition and once that has been understood the next step is to work with a client to develop “Clarity” by creating a coherent strategy that defines how you will maintain, or achieve financial independence. If you are at the start of your plan then the emphasis is on building wealth as tax efficiently as possible. Later in your plan the emphasis may shift to the transfer of assets tax efficiently to the next generation. Once that plan is developed we provide a single document that provides “Clarity” for you and then work with our integrated Independent Discretionary Investment Managers to “Deliver” the investment strategy or your mandate, using our award winning investment process which we call “Outcome Based Investing”.

Outcome Based Investing (OBI)

BEAUTIFULLY CRAFTED WEALTH MANAGEMENT SOLUTIONS DESIGNED TO FIT YOU PERFECTLY.

The chart below illustrates the performance of the most popular portfolios we manage at OCM and shows the added value that OBI has provided over one of the most volatile periods in recent history, compared to the benchmarks, the FTSE all share, MSCI World and MSCI Emerging Market indices.

I am Edward Wilby, an Independent Financial Adviser with Coloma Wealth Management based in the City of London, offering a truly bespoke and individual service to clients throughout the UK.

Periodic Performance Table - Total Return Bid to Bid over Selected Periods to the 21st August 2014 Period

Annual Target Outcome

OCM OBI Focus 5%

5.00%

1.26%

2.35%

3.72%

6.73%

OCM OBI Focus 6.5%

6.50%

1.41%

2.13%

3.73%

Mixed 0% - 35% Shares

n/a

0.88%

1.19%

2.22%

1 Months

3 Months

6 Months

Since June 2009

Since March 2007

21.06%

63.87%

N/A

8.18%

30.41%

74.77%

N/A

4.91%

16.83%

39.10%

22.81%

12 Months

36 Months

My aim is to provide • Fair and unbiased independent financial advice • Financial products and solutions tailored to the client’s needs • Advice at a fair and reasonable fixed or hourly-rate fee • Client confidence and satisfaction

Model Portfolio & Benchmark & Major Global Indices for Observation

OCM OBI Focus 8%

8.00%

1.56%

1.82%

1.97%

8.48%

28.61%

73.54%

91.07%

Mixed 20% - 60% Shares

n/a

1.05%

1.52%

2.40%

6.05%

24.33%

47.47%

25.74%

OCM OBI Focus 10%

10.00%

2.44%

2.82%

2.04%

10.17%

40.74%

94.06%

113.66%

Mixed 40% - 85% Shares

n/a

1.53%

1.99%

2.07%

6.68%

34.40%

59.96%

30.66%

n/a

0.81%

0.41%

1.43%

8.58%

49.73%

81.19%

40.09%

FTSE 100 MSCI World

n/a

2.20%

5.15%

6.15%

11.13%

62.92%

92.21%

55.75%

MSCI Emerging Markets

n/a

4.81%

7.88%

16.17%

12.40%

20.17%

51.65%

62.82%

Before qualifying as an Independent Financial Adviser, I worked in the City of London as an investment banker. My previous experience and subsequent qualifications enable me to advise on all aspects of regulated financial investments, interface confidently with investment institutions, understand financial products and, where necessary, liaise with the chosen fund providers and discretionary management teams - especially helpful for those clients nearing retirement. I have the experience of providing advice throughout the spectrum of professionals, from advising a £1.5 million

Source: Analytics 20th February 2014 – Performance is total return and net of Fund Managers fees but not advisory fees. Please note that past performance is not an indication of future performance and cannot be guaranteed or relied upon.

Summary

OCM Wealth Management is therefore a modern wealth management firm that brings together individual client services into one Independent client focussed solution designed to not only strategise but deliver your objectives. That is why we say “You Dream We Deliver”.

If you would like any further information on our services, or would like to arrange a no obligation meeting with one of our advisers, please contact us on 0845 338 1971, or email info@ocmwealthmanagement.co.uk. Further information can also be found on our website www.ocmwealthmanagement.co.uk

portfolio of investments of a QC to advising a young criminal barrister seeking her first mortgage. I advise Chambers and Solicitors practices on solutions for individual and group pensions, health and income protection, and, for clients nearing retirement, investment and fund management advice. My clients include self-employed doctors, dentists, and veterinary surgeons who I advise on a variety of investments and group scheme issues. As a self-employed professional in a practice with many similarities to barristers’ chambers, I understand the particular uncertainties and financial issues posed by working for oneself and the real concerns when making lifetime financial decisions. Unlike advisers working for larger financial institutions who are remunerated directly by their employer and can only advise clients to invest in their tied financial products, as a completely independent adviser, I can research and access the whole financial

market. As my practice is not restricted by the ties of an institution, I can recommend the most suitable and competitive options which are available to independent financial advisers. Just as the Independent Bar prides itself on providing unbiased fair advice, as a truly independent financial adviser I do just the same. My remuneration is transparent and fixed by agreement in a signed contract after an initial free consultation. I guide my clients through the labyrinth of available financial products, carefully explaining the advantages and disadvantages of the available mortgages, pensions or investments so that each individual is able to make an educated choice. For further information and a complimentary first meeting, please contact Edward Wilby BSc (Hons), IMC, Cert CII (MP), Dip PFS by e-mail at etw@coloma-wealth.com or by phone on 07887 688156.

Wise investments for clever people Explore forestry investment at honourcapital.com

Coloma Wealth Management, 2nd Floor, Mitre House, 12-14 Mitre Street, London EC3A 5BU

t: 020 3603 5910

f: 020 3603 5911

www.coloma-uk.com

Authorised and regulated by the Financial Conduct Authority. Financial Conduct Authority Register Number 563449

Wealth in a World of Change

AUTO ENROLMENT INTO WORK PLACE PENSIONS HAS ARRIVED ��

•�� •�� •�� •� �� •� �� •� �� •� �� •� �� •� ��

The world is changing faster and more fundamentally than at any time in history. At Kaiser Partner, we believe that with such change comes the need to change the way wealth is managed and created. In our ‘Guide for Wealth Owners’ we have compiled a set of new thoughts and principles to successfully navigate wealth in these unprecedented times. To obtain a copy, or for a more connected conversation about your wealth, please get in touch via our website.

��•��• 0845 127 1444 www.canterholland.com

Trust Company | Private Bank | Asset Management | Family Office Liechtenstein | Switzerland

��

www.kaiserpartner.com

43920 RC The Barrister half page ad V4_Layout 1 18/08/2014 16:48 Page 1

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Award winning investment management team building your wealth over the medium and long term

Gold Investments is a family-owned business, which has been trading gold since 1981. Headed up by Mike Temple, who has over 50 years’ experience and knowledge in the investment markets, the business prides itself in offering a personal service to all its clients, both private and institutional. Moving forward with the Internet era, Gold Investments is the only bullion house who now offer the ability to buy and sell gold online with live prices via their website, backed up with the same professional service.

Discretionary Management and Stockbroking Services

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International - Independent For a no obligation chat or for more information, please contact our dealing team on:

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For marketing and information purposes by UBS. For Professional Clients only. It is not to be distributed to or relied upon by Retail Clients under any circumstances. This document has been issued by UBS AG, a company registered under the Laws of Switzerland. Issued in the UK by UBS Global Asset Management (UK) Ltd, authorised and regulated by the Financial Conduct Authority. This document is for distribution only under such circumstances as may be permitted by applicable law. The products or securities described herein may not be eligible for sale in all jurisdictions or to certain categories of investors. Source for all data and charts (if not indicated otherwise): UBS Global Asset Management. © UBS 2014. The key symbol and UBS are among the registered and unregistered trademarks of UBS. All rights reserved. E6 UBS_ETF_LONDN_A4_UK.indd 1

18.08.2014 14:18:32

Supplement 2014

Wealth Management

Independent Financial Planners | Discretionary Asset Managers | Tax Advisers

By Listening

WE UNDERSTAND THE WORLD OF WEALTH MANAGEMENT is a complex one, but one that is evolving. On that basis, with so many different organisations, offering different solutions, it can sometimes be difficult to know which way to turn and who to trust. For example, how do you know whether you need the individual services of an Independent Financial Adviser (IFA), a Personal Tax Adviser, an Investment Manager, or all three together? Based on our experience at OCM Wealth Management we would always recommend that every client needs all three of those services and a Discretionary Asset Manager to ensure your mandate is followed, not that of a Fund Manager. That in itself causes problems because if you bring all of the services together it causes duplication of charges, the different elements not being integrated and sometimes overlapping and conflicting advice.

Investor Profile Ongoing Charges Comparison Resource Used

DIY

OCM

Typical IFA with Platform

IFA + DFM with Platform

Underlying Portfolio

1.50%

0.60%

0.80%

Platform

0.00%

0.25%

IFA / FA

0.00%

0.75%

1.00%

DFM

0.00%

1.00%

Total

1.50%

1.60%

2.05%

3.05%

OCM fee includes IFA, DFA Tax Advice and ongoing advice all in the annual IFA fee - ÂŁ1m+ client

What Makes OCM Different

OUTCOME BASED INVESTING IS OUR USP! Over the last 10 years we have listened to what our clients want from Wealth Management and the answer is always simple, “Clarity” in strategy “Value” as regards to charges and “Delivery” on performance. We have answered above the value proposition and once that has been understood the next step is to work with a client to develop “Clarity” by creating a coherent strategy that defines how you will maintain, or achieve financial independence. If you are at the start of your plan then the emphasis is on building wealth as tax efficiently as possible. Later in your plan the emphasis may shift to the transfer of assets tax efficiently to the next generation. Once that plan is developed we provide a single document that provides “Clarity” for you and then work with our integrated Independent Discretionary Investment Managers to “Deliver” the investment strategy or your mandate, using our award winning investment process which we call “Outcome Based Investing”.

Outcome Based Investing (OBI)

OBI focuses on dynamic, cyclically adjusted, portfolio asset management, which prioritises delivering the “Outcome” (annualised return after fees and fund manager charges) and protecting capital against significant market events and cyclical economic downturns for the client, ahead of beating the benchmark and beating the indices. By focussing on the clients’ needs rather than that of trying to beat our peers the client experience is one of significantly less volatility and peace of mind that they know we are putting their interests first. The chart below illustrates the performance of the most popular portfolios we manage at OCM and shows the added value that OBI has provided over one of the most volatile periods in recent history, compared to the benchmarks, the FTSE all share, MSCI World and MSCI Emerging Market indices.

Periodic Performance Table - Total Return Bid to Bid over Selected Periods to the 21st August 2014 Period

Annual Target Outcome

1 Months

3 Months

6 Months

12 Months

36 Months

Since June 2009

Since March 2007

Model Portfolio & Benchmark & Major Global Indices for Observation OCM OBI Focus 5%

5.00%

1.26%

2.35%

3.72%

6.73%

21.06%

63.87%

N/A

OCM OBI Focus 6.5%

6.50%

1.41%

2.13%

3.73%

8.18%

30.41%

74.77%

N/A

Mixed 0% - 35% Shares

n/a

0.88%

1.19%

2.22%

4.91%

16.83%

39.10%

22.81%

OCM OBI Focus 8%

8.00%

1.56%

1.82%

1.97%

8.48%

28.61%

73.54%

91.07%

Mixed 20% - 60% Shares

n/a

1.05%

1.52%

2.40%

6.05%

24.33%

47.47%

25.74%

OCM OBI Focus 10%

10.00%

2.44%

2.82%

2.04%

10.17%

40.74%

94.06%

113.66%

Mixed 40% - 85% Shares

n/a

1.53%

1.99%

2.07%

6.68%

34.40%

59.96%

30.66%

FTSE 100

n/a

0.81%

0.41%

1.43%

8.58%

49.73%

81.19%

40.09%

MSCI World

n/a

2.20%

5.15%

6.15%

11.13%

62.92%

92.21%

55.75%

MSCI Emerging Markets

n/a

4.81%

7.88%

16.17%

12.40%

20.17%

51.65%

62.82%

Summary

Wealth in a World of Change

The world is changing faster and more fundamentally than at any time in history. At Kaiser Partner, we believe that with such change comes the need to change the way wealth is managed and created. In our â&#x20AC;&#x2DC;Guide for Wealth Ownersâ&#x20AC;&#x2122; we have compiled a set of new thoughts and principles to successfully navigate wealth in these unprecedented times. To obtain a copy, or for a more connected conversation about your wealth, please get in touch via our website.

Trust Company | Private Bank | Asset Management | Family Office Liechtenstein | Switzerland

www.kaiserpartner.com

Contents: 6

Join the pensions revolution By Nigel Bolitho

Why investment managers are like the barristers of the financial planning world By Andrew MacLean – Standard Life Wealth

Six wealth insights By Jason Butler

The Perfect Planning Experience By Matthew Aitchison BA (Hons) APFS, Chartered Financial Planner

Why Buy Gold? – A Safe Haven By Oliver Temple

Avoid becoming the taxman’s next victim with tax-efficient planning By Riki Gangola, Partner, RDP Newmans LLP

Change is the law of life ….and of pensions too By Neil Messenger, Partner and Head of Financial Planning, Grant Thornton UK LLP

The Naked Truth: Forestry investment returns in the UK By Edward Anderson-Bickley, Managing Director of Honour Capital and qualified chartered surveyor

Reducing currency risks. Investing with currency protection. Why using currency-hedged ETFs can provide investors with more focused access to equity markets By Andrew Walsh, Head of ETF UK and Ireland at UBS Global Asset Management

Join the pensions revolution By Nigel Bolitho The March 2014 Budget was a revelation. First the main

Of course these new rules don’t help you if you have a large

proposals were not leaked beforehand, secondly they are

pension pot subject to one sort of cap or another. Not only that

revolutionary. One announcement boosted the amount that can

but the Treasury already anticipates a large increase in taxation

be invested in an Individual Savings Account (Isa) and allowed

after April when the freedom rules begin. However it does

100% switching from cash to investments and vice versa; the

throw up lots of possibilities as the Treasury gradually realises

other heralded a pensions revolution.

the implications of pension freedom.

Thanks mainly to a combination of falling and now low interest

One possibility is switching money from defined benefit (DB) or

rates and increasing longevity (Blackrock forecasts that one of

final salary schemes to personal pensions. These switches lose

every six people in your home or office will live to 100!), personal

a lot in terms of giving up (or paying a lot for) annuity escalation

pensions had come to be considered a poor investment. First of

and a widow(er) pension. But if somebody is single and/or

all annuity rates are lousy for most people and you lose control

divorced and/or in poor health it’s not now so clear cut that a

of your of your pension money as a result. Secondly the half

transfer from a DB to a defined contribution (DC) or personal

way house called Capped Income Drawdown (CID) still controls

pension scheme is bad advice. For many years it has been

the maximum income you could take in any 12 months period.

correctly deemed to be bad advice but the number of DB to DC transfers seems to be increasing. Note, however, that specialist

Soon that rule will be swept away for many people. From next

advice must be taken over a DB to DC transfer and preferably

April anybody over the age of 55 will be able to take not only

from a specialist adviser with a G60 qualification.

25% tax free cash from their pension pot(s) but also grab as much taxable income as they wish. Of course income tax comes

So why might a DB to DC transfer be good advice? For starters

into the equation: if you are a higher rate taxpayer paying a top

the personal pension tax free lump sum is likely to be much

rate of tax of 40%, or an additional rate taxpayer on 45% or

bigger than that available from a DB scheme; then there’s

pay an effective marginal rate of tax of 60% between £100,000

complete freedom to take taxed income when one wants it

and £120,000 (when you progressively lose your personal

from next April and assuming you are over the age of 55. Not

allowance), there’s not point taking lots of highly taxed income-

surprisingly perhaps the Government wants to veto transfers

but it does make contributing to a pension fund much more

out from government and other DB schemes that are largely

worthwhile.

funded from general taxation.

But there are plenty of cases where this rule relaxation makes

In August the Government unveiled three possible options under

pension popularity jump from zero to hero. Perhaps the most

which people will be able to access their pension pots in April

obvious case is the barrister or judge’s non-working spouse.

2015 and in future years. One will allow savers to take income

Every UK resident can invest £3600 gross into a personal

from their existing pension funds; another will allow then to to

pension each tax year and receive 20% tax relief up-front even

use part of their existing pension pots or pots to purchase an

if they are a non-taxpayer. Small stuff perhaps but up until now

annuity. The third way is, imaginatively, called “flexible access

there was not much point because the end result was a small

drawdown” (FAD). Here the pension money goes into one big

annuity. Now pension flexibility combined with a rapidly rising

pot, 25% tax free cash is usually withdrawn and the balance

personal allowance (£10,500 in 2015-16) makes it attractive for

feeds income needs. Such a scheme seems to be very similar to

the spouse to invest in a pension for a year or so and then take

current CID schemes.

the money out as income. That income is likely to be initially taxed at 20% so a tax return will need to be completed: if the

Of course FAD opens up lots of other possibilities: for example

spouse has never worked, the form to reclaim tax is R40.

make pension contributions then withdraw 25% tax free cash and taking the remainder as taxed income. Not surprisingly the

If the spouse is over 60 with a few small pension pots then the

Treasury is worried about hordes of savers “recycling” their

new rules may allow those pots be taken as cash: again 25% tax

money in this way so anybody who takes more income than

free and the rest potentially taxable.

the current maximum under capped drawdown may be limited

personal finance & wealth management supplement the barrister 2014

to how much they can subsequently pay in as new pension

addition both the platform and the adviser’s charges have to be

contributions: one suggestion is that in these circumstances the

clearly displayed.

maximum annual pension contribution may be reduced from £40,000 (excluding certain adjustments) to £10,000.

Most Budgets are boring and all too often major proposals are leaked to friendly newspapers in advance. The Budget in March

But assuming that some form of drawdown because the

was a big exception and in terms of the pension revolution

popular model for accessing pension money, what is the right

there’s more work to be done ahead of liftoff next April. But

form of drawdown? On the one hand you have life companies

if Americans and Australians can manage their pension funds

which sell their own-branded units (with income reinvested)

as freedom funds, most Brits should be able to do the same. I

to produce the saver’s income. That’s fine if markets are going

don’t believe that lots of pensioners will immediately become

up but if they are falling then a lot of units may have to be

spendthrifts or splurge out on a Lamborghini. But they will

sold to produce the required income. On the other hand you

welcome the fact that they can now take personal control of

have the fund platforms or supermarkets. They invest savers

what is usually the main part of their finances. At the moment

money directly into commonly-held unit trusts and usually

at least I cannot think of a situation where an annuity is the

offer much greater fund choice. Within them it is possible to

better pension option unless there are guaranteed annuity

have the “natural” income from the unit trusts paid into a cash

rates attached.

account and it is from the cash account that the saver is paid his or her income. Of course in this case the saver can always

Nigel is also a senior journalist and writer for the Investors

take more income by cashing in units but he or she can clearly

Chronicle (part of the Financial Times group) and other

view the consequences of such action. I am a firm believer

financial periodicals.

in the fund supermarket approach to managing a drawdown contract; that’s particularly so when it is also easy to make

nigel.bolitho@gmail.com

pension contributions at the same time and when nowadays

bolitho@enterprise.net

there should be no upfront, no switch and no exit charges. In

AUTO ENROLMENT INTO WORK PLACE PENSIONS HAS ARRIVED ��

•�� •�� •�� •� �� •� �� •� �� •� �� •� �� •� �� •��• 0845 127 1444 www.canterholland.com ��

personal finance & wealth management supplement the barrister 2014

Why investment managers are like the barristers of the financial planning world By Andrew MacLean – Standard Life Wealth

Many of the differences between solicitors and barristers are

range, depending on the adviser’s qualifications, from investing

probably fairly opaque to the average person.

to tax planning. Management of the client’s investments may

The legal profession isn’t alone in this – differences which are

be undertaken “in-house” by their adviser, or the adviser may

obvious to industry insiders are often not so clear to those outside

“outsource” some of the management to a third party such as

it. Boundaries between roles which change over time further

a discretionary fund manager, effectively acting as a liaison

complicate matters. The world of private client management

between them and the client.

fits neatly into this category. What, if anything, is the difference between an investment adviser, an investment manager, a

Two popular methods of outsourcing used by advisers are

portfolio manager, a financial adviser and a financial planner?

advisory and discretionary management. The choice to use

Again, there isn’t necessarily a clear distinction: different

either option may be taken directly by the client, or they may

companies and finance professionals take on different aspects

be guided as to which option is appropriate by their adviser.

of these roles. With advisory management, the client is contacted by Managing the finances of wealthy clients can be largely divided

the investment manager before investment decisions are

into advisory and discretionary management. Many wealthy

implemented. For investors who are interested in how their

clients have a financial adviser who deals with day-to-day

investments are managed, this is often the right choice.

matters and offers advice on a variety of issues which can

However, it carries potential penalties: investment managers

personal finance & wealth management supplement the barrister 2014

For marketing and information purposes by UBS. For Professional Clients only. It is not to be distributed to or relied upon by Retail Clients under any circumstances. This document has been issued by UBS AG, a company registered under the Laws of Switzerland. Issued in the UK by UBS Global Asset Management (UK) Ltd, authorised and regulated by the Financial Conduct Authority. This document is for distribution only under such circumstances as may be permitted by applicable law. The products or securities described herein may not be eligible for sale in all jurisdictions or to certain categories of investors. Source for all data and charts (if not indicated otherwise): UBS Global Asset Management. ÂŠ UBS 2014. The key symbol and UBS are among the registered and unregistered trademarks of UBS. All rights reserved. E6

can’t make instant decisions when they see an opportunity.

experts in the management of our clients’ assets.

Instead they have to wait until they can contact the client and get their agreement, or otherwise, to make the trade. The nature of

People need different things from their investments at different

the relationship between client and investment manager means

points in their lives. For example, when you’re young and

that decisions can’t be instant, and any time out of contact can

earning, you’re likely to be able to take on more risk and be

lead to missed opportunities.

aiming to grow your portfolio. At the other end of the spectrum, clients in retirement may be taking a regular income from

Discretionary management, on the other hand, tends to be

their portfolio, possibly drawing down from capital. Growth is

‘hands-off’ for the client. If you go down the discretionary

a lower priority than continuing to take a sustainable income

route, you hand decision making more-or-less entirely to an

throughout retirement, and possibly leave an inheritance to pass

investment manager. You’re involved in initial conversations

on. As a result, clients will often need different approaches to

around investment constraints and aims: things like the risk

managing money which seek to meet these two types of needs.

to be taken, whether you’re investing for capital growth or whether an income is needed, and whether there are specific

Perhaps the most important thing we have in common

markets you have a specific interest in or wish to avoid. You’re

with barristers is that we both work with people who are

also involved in regular reviews of your portfolio. However, by

less experienced in our field of expertise than ourselves.

and large, the investment manager makes individual investment

Discretionary managers will

decisions independently. They use their professional knowledge

possible results for clients to meet their diverse and changing

and expertise to make immediate judgments on their clients’

needs.

aim to always deliver the best

behalf. This is Standard Life Wealth’s role. About Standard Life Wealth There is also a third form of management: execution only. Clients who choose this style aren’t looking for any form of

At Standard Life Wealth we work with a huge number of

advice, and are entirely responsible for their own investment

different clients, each of whom has different needs and goals.

decisions.

Experts in the management of our clients’ assets, we manage around £5.8 billion*.

How does this tie into the legal profession? Advisory management, with its advice-based nature, regular client

Advisers and clients turn to us when they want specialists to

interaction and face-to-face contact and dealing with their day-

manage their investments on a day-to-day basis. Our aim is to

to-day concerns, parallels the work of a solicitor. They work

find the investment approach that will best suit each client’s

directly with clients, dealing with their ongoing needs and day-

unique goals and preferences. We can work closely with advisers

to-day concerns.

or directly with clients to ensure that we fully understand their goals. We then manage their portfolio according to these goals.

But, where required, a solicitor will engage a specialist – a barrister. In most cases they don’t work directly for the client but

Standard Life Wealth offers two investment approaches. The

are instructed to act on their behalf. They act as experts in the

first of these is the conventional approach. This may be suitable

area they’re retained for. Similarly, as discretionary managers

for people who are growing their wealth, and who are happy

we’re engaged to act as specialists in the management of our

to see their portfolio fluctuate in line with investment markets.

clients’ investments. Advisers often outsource this specific

Conventional portfolios are fully diversified, investing primarily

area of their clients’ financial management to a discretionary

in traditional asset classes such as equities, bonds and property.

manager – though we can and do work directly with clients too. To this extent we’re the investment equivalent of a barrister:

personal finance & wealth management supplement the barrister 2014

The second investment approach available seeks to deliver

target returns. Many people are investing for particular aims or goals. Outperforming the investment markets doesnâ&#x20AC;&#x2122;t necessarily help meet all client needs, particularly if the client is concerned about the impact of short to medium-term volatility. To help manage this, the target return approach aims to deliver specific, target returns over a three year rolling timeframe, rather than aiming for market-based return.

*As at 30th June 2014

The articles in this supplement are intended for general information only

Visit www.standardlifewealth.com to find out more.

and should not be construed as advice under the Financial Services and Markets Act

personal finance & wealth management supplement the barrister 2014

Six wealth insights By Jason Butler

Four hundred hours over five months, 800 pages of A4 text, 350 citations, 250 graphics and 10 reviewers later I’m pleased to advise that I’ve now completed the second edition of my book – The Financial Times Guide to Wealth Management – which is due out later this year. Although it’s not quite three years since I wrote the first edition, a lot has happened in the world of investment, pensions, tax and law, particularly over the past six months. I’m particularly pleased with the second edition, because it is more comprehensive, expanded, updated and improved. Here are just six insights, from the many that I’ve included in the book, which you might find of interest. Increasing longevity We are all living longer and the trend is for this to continue. This has massive implications for wealth planning because it means we need to fund a longer level of lifestyle expenditure, with an increased likelihood of requiring long term care. Projected life expectancy at age 65 1982 - 2063

Source: Office for National Statistics: Historical and Projected Mortality Data from the Period and Cohort Life Tables, 2012-based, UK (December 2013)

Long term care costs of £250,000? Despite the imminent introduction of a ‘cap’ on care fees of £72,000 for those in England and Wales (Scottish residents get free social care), I estimate that a typical affluent person can expect to pay about £250,000 in care costs, based on the published definitions and eligibility criteria.

personal finance & wealth management supplement the barrister 2014

Illustrative cumulative care costs

Source: Bloomsbury. Assumptions: Total fees £28,000pa (escalating at 4%pa), eligible fees (for cap) £20,000pa and hotel costs £12,000 pa (both escalating at 2.5%pa), cap is £72,000

Lower investment returns likely A combination of factors suggest that future investment returns are likely to be lower than the long-term historic average. This means that it is even more important to ensure that capital is invested in the most effective way, including having sufficient exposure to compensated risk factors, keeping costs low and using fund managers that adopt clever trading strategies. The equity risk premium in developed markets

personal finance & wealth management supplement the barrister 2014

Inflation is still likely to be a big problem Although inflation has fallen over the past few years, some experts think that the long term impact of loose monetary policies like quantitative easing will be higher inflation. Even at a relatively low inflation rate of 2.5% pa, the purchasing power of your wealth halves every 28 years. At 4% inflation, it halves every 18 years. The erosion of purchasing power of capital by inflation Inflation

2%`

Years to halve capital

Socially responsible and impact investing is on the rise Socially responsible investing (SRI) is rapidly gaining greater prominence as people and companies face up to the various social, environmental and ethical challenges in the world. Two particular areas, sustainable investing and social impact investing, are gaining greater acceptance among the wealth management profession and are likely to become core elements of many clients’ wealth plans.

Source: RBC Wealth Management & Capgemini (2012), 2012 World Wealth Report; EUROSIF (2012), High net worth individuals and sustainable investment 2012, p9

Being a graduate should NOT be the default choice With the full impact of higher tuition fees and less state financial support available for many young people in England, Wales and Northern Ireland, a typical student can expect to graduate with a debt of nearly £50,000. Unless they earn either very little or quite a lot, most can expect to spend most of their working life paying off this debt. Many young people would be better advised to do a modern apprenticeship after A levels and many professions, such as law and accountancy as well as the established trades, are now offering apprenticeships. Jason’s book - The Financial Times Guide to Wealth Management (second edition) - is due out in the autumn.

personal finance & wealth management supplement the barrister 2014

Invest like Buffett – the Low Cost Way Low cost tracker funds are booming as more people move away from actively managed investments. Adam Laird, Hargreaves Lansdown’s Passive Investment Manager looks at the pros and cons of tracker fund investing – and when you should stick with a traditional fund manager Warren Buffett is one name in finance everyone knows. Every

Warren Buffett is himself in the opposing camp – an active fund

year he writes a letter to shareholders in his company, Berkshire

manager who chooses investments to beat the index. So why

Hathaway, which gives valuable insights from this great mind.

are he and many other professionals advocating that investors

This year’s letter included some simple advice on how he wants

shifting to tracker funds? There are three main reasons.

his wife’s inheritance to be managed after his death. He says: “put 10% of the cash in short-term government bonds and 90% in a very low-cost index fund [known in the UK as ‘tracker funds’].”

Performance In theory, active fund managers are full time professionals looking for the investments most likely to outperform. Whilst some, like Buffett himself, have long records of consistently

Tracker funds are simple and often low-cost investments which aim to mirror the performance of a stock market index – like the FTSE 100. They are considered a modern investment, though the concept has been around since the 1970s. They have become mainstream over the last decade and currently more than £1 in every £10 invested in funds in the UK is a tracker.

beating expectations, unfortunately the majority disappoint. It is arguably getting more difficult to run an actively managed fund – a key skill is discovering good investments first. As technology improves and computing speed increases, bargains in the stock market are spotted more quickly. Even for the best managers, it is tougher to find stocks and bonds at the lowest price.

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personal finance & wealth management supplement the barrister 2014

The chart shows the performance of three major fund sectors

Many research organisations compile performance tables but

over the last 10 years (Source: Lipper 1st August 2004 – 1st

assessing the merits of each strategy can be time consuming.

August 2014). The Investment Managers Association calculates an average performance for funds in each sector, which is shown beside a representative market index. In all three cases, the average manager has underperformed.

The returns on an actively managed fund can be very difficult from its benchmark. The fees on tracker funds mean they tend

The approach in Berkshire Hathaway has always been to keep things simple – investors should stick to their “circle of competence”. This is why many people favour tracker funds – it is easy to tell what they will do and to assess their performance.

Cost

to underperform their index too, but there is less risk a tracker

In Buffett’s eyes, low cost means long run outperformance.

fund performance will deviate significantly from its index.

With many things in life you get what you pay for – spending

You cannot predict a good active manager from past performance alone. Studies have shown there is little consistency in fund performance. Vanguard Asset Management looked at actively managed funds in the decade from 2003 to 2013. Of those 335

a little extra means better quality, service or convenience. Unfortunately in investing, the reverse tends to be true. Numerous studies have found management fees are one of the biggest determinants of fund performance.

funds in the top 20% over the first five years, only 43 funds

The fees on tracker funds tend to be much lower than actively

outperformed in the second half. 82 of those funds were in the

managed funds. Their managers do not need to employ teams

bottom 20% and 79 were closed down.

of researchers to look for opportunities – the investment choices

Simplicity

are dictated by an index provider, like FTSE or Standard and

Active managers have different objectives and strategies – each

Poor’s.

will have times when they do well and when they struggle. To

The charges on all investment funds have fallen this year, due

choose the right product you need to look a fund’s portfolio, the

to competition and regulatory change. The ongoing charge

investment process and the manager’s record. There are many

on a typical actively managed fund might be 1% of assets

places investors can find research and recommendations –

whereas UK investors can currently buy tracker funds in all

companies publish lists of top performers, including Hargreaves

major sectors under 0.25%. This might sound like small change

Lansdown’s Wealth 150 list of its favourite active fund managers.

but over time even small differences can be substantial. In 10

personal finance & wealth management supplement the barrister 2014

years, an investment of £10,000 growing by five percent per year will be worth £14,731 after 1% annual charges or £16,127 with a 0.1% fee. In this case, you would earn £1,395 more by

For more information about tracker funds, visit www.HL.co.uk/core

switching to a tracker fund.

Adam Laird

A place for everything and everything in its place

Passive Investment Manager

No one type of investing works for everyone and there are still

Hargreaves Lansdown, 1 College Square South, Anchor Road,

reasons to stick to active managers. Most tracker funds follow

Bristol, BS1 5HL

indices where the largest, most frequently traded investments are the biggest proportion, so active managers are the best way to invest in small companies. Smaller firms are generally less well researched and less frequently traded, so it is an area where a good manager can add real value. Whilst tracker funds can pay income, some actively managed funds are built with the explicit purpose of holding above average yields. For income seeking investors, actively managed funds often pay the most. Finally, tracker fund investors have few options for investing directly in property or cash.

Tel: 0117 980 9884 Web: www.HL.co.uk Risk Warning: The value of any investment can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This article is not personal advice based on your circumstances, if you are unsure about the suitability of an investment please speak to a financial advisor

In Hargreaves Lansdown, we find many of the best investment portfolios blend actively managed funds with trackers to suit the individual. Here are three popular ways to do this: 1.

Core and explore

Tracker funds are a good way to gain low-cost exposure to major markets - therefore some investors use tracker funds as a low-cost core for their portfolio but complement this with actively managed funds or other assets to increase exposure to favoured areas. 2.

Choose the best exposure for each area

Another popular strategy is to build a portfolio of your favourite active managers, but use tracker funds to fill in the gaps. For example, the US is a country where active managers have struggled to add value. Some believe the US is so heavily researched that it is tricky for fund managers to find undervalued stocks. Many investors would use an American tracker fund alongside actively managed funds investing in other regions. 3.

Low fee in conservative assets

There are some types of asset which tend to generate low returns, often because they are less risky. When investing in these assets, charges make a bigger proportional difference to returns and therefore investors often focus on minimising costs. For example the yield on gilts has been at record lows, with the index yielding below 3.5% since 2011. Investors in this type of asset often opt for a low-cost tracker fund rather than pay for active management.

personal finance & wealth management supplement the barrister 2014

The Perfect Planning Experience By Matthew Aitchison BA (Hons) APFS, Chartered Financial Planner

Working with a financial planner can be a hugely rewarding experience, however, at the beginning of a relationship it can be difficult to spot the difference between a REAL financial planner and a traditional product based sales adviser. One of the best ways to tell early on is the planning process you experience initially and on an ongoing basis. In this article I will walk you through my view of the ‘Perfect Planning Experience’…

introductions and drinks being offered, Fred (your financial planner) explains that the purpose of today is for both parties to learn enough to decide whether or not they wish to work together moving forward. The idea of a financial planner not automatically taking you on is an intriguing one! Fred explains that as a company, they have capped the number of client relationships they have so that they can provide a top class service and add significant value to each and every one of their clients. This first meeting is a slightly strange experience in comparison to your previous adviser! Instead of the normal sales pitch, Fred has begun by asking you to talk him through your background story, i.e. how have you ended up in your current situation. He then moves on to finding out what’s important to you. This includes questions about your family and your passions as well as your hopes, dreams, goals and fears for the future. Your money has not even been mentioned up to this point which is refreshing! He finally moves on to finding out a bit about your current financial situation, although Fred stresses that at this point he is only looking for an overview.

First Contact You haven’t heard from your current adviser for a while (not since the last time you wrote a cheque to your pension) so you have decided to look for a potential new adviser. After searching on the internet, you find a company who describe themselves as ‘Financial Planners’. Their website looks different to most other advisers in that they do not really mention products. Instead they talk about “goals”, creating “strategies” and “relationships”. Intrigued you email them and a no obligation, no cost, first meeting is arranged. Prior to the meeting you receive a ‘welcome pack’ through the post. The accompanying letter explains that the purpose of this pack is to introduce the company and service as well as answer some common questions so the first meeting can focus on you, and be as productive as possible.

Once Fred seems satisfied that he knows enough about your situation, he then tells you that he thinks he can help. He runs through the service he can provide and how it relates to the goals and aspirations you have for the future. The focus is on designing a strategy that will enable you to live the life you want, accomplish all your goals as well as lower your tax liabilities. He also runs through the cost of this service. What is intriguing is that he asks for a commitment to a ‘planning fee’ that is payable whether or not any products are bought. You explain to him that traditionally, you have paid your adviser through the sale of a product. Fred explains that his fees are set out the way they are to negate conflict of interest. By charging a fee for the plan, he is not dependent on selling you a product. In fact, it enables him to recommend a course of action other than a product if that is more appropriate for you. Most importantly, it aligns your interests and ensures he works for you, not the product providers. Once explained, it makes you realise why you don’t hear from your adviser unless you are adding money to existing pensions or investments, or setting up something new!

First Meeting The day of your first meeting arrives and after initial

personal finance & wealth management supplement the barrister 2014

At the end of the meeting, Fred runs through the next steps and thanks you for your time. Shortly after you receive a fee

Third Meeting The day of the presentation meeting has arrived. You settle down into the meeting with a mixture of excitement and nervousness. After the initial small talk, Fred begins the meeting by running through your current financial reality including your family balance sheet and current income and tax liabilities. He then overlays a number of prudent assumptions regarding inflation, tax rates, growth rates and other variables to produce a cash flow model of your potential financial future. The outcome is surprising! Even though you are paying into a pension, you are projected to run out of money by the age of 80. You were not aware of this!

proposal in the post that confirms your goals and aspirations, how Fred can help and what he will charge, which you send back promptly. Second Meeting Your second meeting is booked for one weekâ&#x20AC;&#x2122;s time. The day after booking the meeting you receive a confirmation letter as well as a list of requirements that you will need to prepare prior to the meeting. This includes details of your income, expenditure, assets, liabilities, tax returns, policy information and a risk profile questionnaire. Lots of information, but Fred assures you that he needs it to build a complete picture of your current financial situation. The day of the meeting arrives! Fred talks you through the plan for the meeting and reiterates that he needs all of this information in order to create a meaningful financial plan. This meeting is a little dryer than the previous meeting as Fred goes through his questionnaire, but he does sprinkle in some more thoughtful questions where he would like to know more about a certain area. Most importantly, your goals and aspirations are discussed in detail, and documented. At the end of the meeting, you sign letters of authority to allow Fred to write to your existing providers for details of your contracts. He talks you through the next stage of the process which includes analysing and evaluating your current financial situation, establishing the affordability of your goals and designing a strategy that provides the framework to achieve your future goals, reduce your tax liability and make your investments and pensions more efficient. All sounds good to you! Over the course of the next few weeks, you receive regular email correspondence updating you on the progress of the planning process. This is quite an insight into the battles to gain information from providers as well as the work that is going on behind the scenes! Once the analysis is complete, the third meeting is arranged.

After the initial shock, Fred explains that although bad, there is time to rectify this. He explains that there is surplus income after all expenses are paid which could go into a variety of tax wrappers. He also explains that the investment strategy being used is both expensive and inefficient. He has put together an investment strategy that is designed to deliver the personal rate of growth that you need to achieve your goals. Not only this, but there are a number of changes that can be made to reduce the money being lost to tax. Once these changes are modelled, the results are that you do not run out of money. What a lovely sight to see no red on the output screen! Not only that, but the cost savings and tax reductions more than pay for the cost of the planning exercise and the ongoing fee Fred will charge. It feels like the service is free! Fred also runs through what would happen to your family if various disasters (i.e. death, serious illness, etc.) occurred. There are some problem areas as well as some cover that isnâ&#x20AC;&#x2122;t needed. Again, Fred has some suggestions as to how to mitigate this risk in a cost effective way. At the end of the meeting, Fred sums up the financial strategy moving forward and you agree an action plan to move towards this financial strategy. A few days after the meeting you receive a written report detailing everything recommended in the meeting and the next steps. For the first time you feel that you have an adviser who is on your side, who has your best interests at heart and is not trying to sell you something! Not only that, but your future is clearer and you have peace of mind that comes with feeling in control. Youâ&#x20AC;&#x2122;re looking forward to implementing the strategy and working with Fred on an ongoing basis!

Matthew Aitchison BA (Hons) APFS Chartered Financial Planner Clear Vision Financial Planning Limited 01234 851 797 07854 769 815 maitchison@clearvisionfp.co.uk www.clearvisionfp.co.uk

personal finance & wealth management supplement the barrister 2014

Change is the law of life ….and of pensions too By Neil Messenger, Partner and Head of Financial Planning, Grant Thornton UK LLP

In June 1963 John F Kennedy addressed the leading politicians

Obviously, income tax is a consideration too. For the first time

of West Germany in Frankfurt. He said “Change is the law

in their careers, many people will have the ability to decide how

of life and those who only look to the past or the present are

much income to take in a year and, consequently, how much

certain to miss the future” Kennedy was speaking about liberty

income tax they will have to pay. Naturally, this gives scope

and internationalism but the words could just as easily apply to

for managing the income drawdown in ways that minimise the

UK pensions in 2014. The whole landscape both of building up

tax bill.

funds for retirement and of taking an income from those funds

totally free of tax as a ‘pension commencement lump sum’

is changing dramatically.

from defined contribution pension funds, everyone has an

Anyone who ignores the changes

may fail to achieve their plans in later life.

In addition to the first 25% of the total fund being

annual personal allowance for income tax. This means that approximately a further £10,000 a year of income is free of tax.

Changes to pensions have been introduced piecemeal since 2006 and it can be difficult to understand their combined effect. Over the period, restrictions on the amount of money that can

Staying within the band for basic rate tax will also mitigate the tax bill and the timing of when income is taken from the fund can be critical in achieving this.

be invested in the tax-advantaged wrapper of a pension have increased. This bad news, however, is offset by the changes

For many people, the best option will be to retain their capital

in how income from a pension can be taken from April 2015.

within the favourable tax environment of the pension fund

There will be much greater flexibility on access to pension

until it is needed for income purposes. However, the need for

funds but the decisions that have to be taken will be much more

liquidity changes the time horizon for the things in which the

complex.

fund is invested. This means that the long-term, and possibly illiquid, things in which the pension fund was invested while

New freedom In the last Budget Statement, George Osborne introduced a series of proposals that will totally reform the pensions market in the years to come. The old regulations that forced people to buy annuities have been swept away. Limits on pension income have also gone. From April 2015 those with defined contribution pensions and aged 55 or over will have full access to their total pension fund to use in any way they wish. There is a catch. Any withdrawals from the fund in excess of the taxfree pension commencement lump sum will be liable to income tax. This fly in the ointment, however, does not detract from flexibility afforded by the reform. A more serious problem will be managing the pension fund Those drawing down their accumulated pension

it was accumulating, will no longer be appropriate. A new

capital must be wary of outliving their fund. There is a balance

investment strategy will be required and will need careful

to be struck to ensure that the levels of withdrawals are aligned

management if it is to be effective.

efficiently.

with the investment growth within the residual fund, so that capital does not deplete too rapidly.

personal finance & wealth management supplement the barrister 2014

Your current investment strategy may also need an immediate

review. When access to pension funds was restricted it was

cut to just £50,000. It remained at this level for three years but

often prudent to move the fund towards less volatile assets,

for tax year 2014/15 it has been further cut to just £40,000.

such as gilts and bonds, as the date of retirement approached.

More reductions are possible in the years to come.

Such a strategy was designed to mitigate the impact of the

who can afford to contribute the maximum each year should

volatility in the equity market just before the funds were vested

consider the potential cost of not acting immediately.

Those

and an annuity had to be purchased. Under the new regime, there is no cliff edge. If markets fall just before vesting, the investor can just take enough income for immediate needs but the bulk of the capital can remain invested while markets recover.

Many current pension investment plans have an

automatic move towards to bonds built in and this will be triggered notwithstanding the new regime. Now would be a good time to check that your arrangements do not have such automatic investment changes.

The Lifetime Allowance was also imposed on pension funds in tax year 2006/7. This restricted the total amount that can be accumulated across all the registered pension funds a person held to £1.5 million. Like the Annual Allowance, this figure was increased until 2010/11 but since then it has been reduced and for tax year 2014/15 it stands at £1.25 million. Crucially, the Lifetime Allowance is not just the sum of the contributions but also includes any investment growth within the fund. This factor has meant that many high earners have

New restrictions

to stop contributing early just to ensure that future investment Pensions have always enjoyed a number of attractive features.

returns do not carry the fund over the Allowance threshold and

Contributions receive a tax uplift equivalent to the marginal

become subject to punitive taxation. Whilst the £1.25 million

rate of income tax of the investor. Additionally, the fund grows

limit might not sound an alarm for a young barrister with a

free of tax as long as it remains unvested. Up until now, the

pension pot of, say, £700,000, investment growth of just 7%

price for these benefits has been restrictions on accessing fund and the compulsion to buy an annuity at some point. The new regime from April 2015 removes these drawbacks. Pensions have become a whole lot more attractive. Given the tax treatment of contributions, the tax-free growth of investments within a pension and unrestricted access to the fund from the age of 55 onwards, it would seem sensible that everyone should put as much as they can into a pension fund. However, the restrictions on contribution levels have become tighter and tighter over recent years. While contributions used to be limited as a percentage of total relevant earnings, this limitation rarely troubled most people, especially high earners. In 2006 the concepts of an Annual Allowance and a Lifetime Allowance were introduced. The Annual Allowance restricts the total amount that attracts tax relief when contributed to a pension fund in a tax year. The Lifetime Allowance limits the size of the total fund. Punitive taxation rates are applied if either of these allowances are exceeded. Back in tax year 2006/7 the Annual Allowance was £215,000, which wasn’t too restrictive.

Over the next few years the

Allowance increased steadily until it reached a high point of £250,000 in tax year 2010/11. Then, without warning, it was

personal finance & wealth management supplement the barrister 2014

per annum will take it over the Allowance threshold within ten

count towards both the Annual Allowance and the Lifetime

years, without any further contributions

Allowance.

To mitigate the impact of this for those who had already built

In line with most other public sector schemes, the generosity of

up substantial pension funds before the Lifetime Allowance was

the Judicial Pension Scheme is being reduced. Members have

introduced, several different types of protection were introduced.

been required to make contributions since April 2012 and the

People could select from a number of options that protected the

level of these contributions has risen sharply in the years since.

accrued value of their tax free pension commencement lump

Along with this change, the level of benefits will be drastically

sum entitlements and the accrued value of their total pension

reduced from April 2015. Judges who were within ten years of

fund. However the protections can be easily lost if a range of

retirement in April 2012 are excluded from the changes.

restrictive conditions are breached.

Those who elected for

one of the available protections must take great care not to inadvertently lose the benefits.

One significant impact of the changes is that the scheme will become a tax registered pension scheme and as such the Annual Allowance and Lifetime Allowance will become relevant

The regulations around the various forms of pension protection

for scheme members.

are complex and there are many pitfalls. If you have elected

they remain generous and require a high level of funding. The

for any protections or wish to do so, it is important that you

annual contributions for individual members will, in general,

take professional financial advice to ensure that you retain the

exceed the Annual Allowance and, therefore will give rise to an

benefits.

income tax charge in respect of the excess.

The Judicial Pension Scheme

Increasing your income in retirement

The freedoms to access pension funds that commence in April

The imminent changes to access to pension funds mean that

2015 apply to personal pensions and Self Invested Pension

they have become a much more attractive means of providing

Schemes (SIPPs).

Some barristers may still have Retirement

income in retirement but the restrictions on contributions might

Annuity Contracts (RACs). These were superseded by personal

hamper your plans to fulfil your dreams. Making contributions

pensions in July 1988. RACs were allowed to continue after that

to your own pension, however, is not the only option for funding

date, and existing contracts could be topped up with additional

future plans.

Although the benefits are being cut,

contributions, however no new RACs could be started. When pensions were reformed in the Pensions Act 2006, RACs lost their special privileges and became subject to the same regime as personal pensions.

One option is to make contributions into a pension for your spouse.

Even a non-working spouse can put ÂŁ3,600 per

annum into a pension. This may be only a small uplift on the Annual Allowance but the investment returns in a favourable

Employed barristers often have defined benefit schemes, where

tax environment can produce a significant additional capital

the pension is determined by the rules of the scheme. The

sum in retirement and it might be possible to draw it out of the

Judicial Pension Scheme is a defined benefit scheme but it is

pension, tax-free, using the Tax Free Cash lump sum and the

also changing in April 2015.

annual Personal Allowance of your spouse.

As an employer-financed retirement benefits scheme, the

Another significant option that should be considered is

Judicial Pension Scheme is currently a non-registered pension

contributing into an ISA. Under the new rules introduced in the

scheme. It does not therefore enjoy the income tax benefits that

last Budget Statement, which came into force in July 2014, it is

apply to registered pension schemes and, more significantly for

now possible to invest ÂŁ15,000 annually into an ISA. With an

members, the contributions and benefits do not count towards

Annual Allowance of just ÂŁ40,000, the extra contribution into

the Annual Allowance or the Lifetime Allowance. Contributions

an ISA would have a significant impact upon the size of fund

towards the Judicial Additional Voluntary Contributions

available to you in retirement. Just like a pension, investments

Scheme, however, do attract tax relief and they do, therefore,

inside an ISA enjoy a favourable tax regime. Although there

personal finance & wealth management supplement the barrister 2014

is no uplift on contributions going into an ISA, there is no income tax on any money withdrawn. Using a pension fund and an ISA fund to provide income in retirement provides many opportunities to achieve a tax-efficient outcome. Having a range of different investments, each with different benefits and tax treatments, allows greater scope for tax planning when it comes time to enjoy your retirement. What you need to do now The rules of the pensions game have changed. If you want to protect your hopes and dreams for your retirement, it is important that you review your pension planning immediately. Despite the wish to make pensions simpler that was announced by the government in 2006, they have become more complex. The new regime to be introduced in 2015 makes drastic changes and, although superficially they simplify pensions, they actually introduce many complicated and difficult decisions around investments, tax and capital preservation. The words of JFK, quoted earlier, contain a very explicit threat: â&#x20AC;&#x153;those who only look to the past or the present are certain to miss the futureâ&#x20AC;?. 43920 RC The Barrister half page ad V4_Layout 1 18/08/2014 16:48 Page 1

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personal finance & wealth management supplement the barrister 2014

The Naked Truth: Forestry investment returns in the UK By Edward Anderson-Bickley, Managing Director of Honour Capital and qualified chartered surveyor In 1954 Dylan Thomas wrote “Under Milk Wood: A Play for Voices.” One reason why this particular piece by Thomas is so popular is that each performance reveals something new. Indeed, for the uninitiated, the opening lines are a daunting and relentless rush into an adjective rich scene set that is hard to fully comprehend. Mention forestry investment at a dinner party, and you will invoke your own Play for Voices. From all quarters experts and laymen will opine on the good, the bad, the incorrect and the completely unnecessary. With the above in mind, the purpose of this article is to provide you with a clear understanding of forestry investment, as told by one of only a handful of regulated forestry investment advisory firms in the world today. What is forestry? Forestry is the creation, management and sustainable use of timber resources. In other words, forestry is “growing the correct type of trees, and growing them well.” Forestry investment, particularly in the UK, centres on commercial timber production. For an investor to benefit from the extensive suite of tax reliefs that the government has given to forestry in the UK, (more on this later) successfully demonstrating that your asset is commercial is critical. A woodland containing broadleaf trees can be owned and managed as a commercial asset. However, timber mills in the UK rely on softwood timber. Consequently, forests that are made up of softwood conifer species are more commonly regarded as commercial forests. Trees, timber…..is this really an investment? According to the United Nations, annual global consumption of timber is estimated at 4 billion tonnes. If this is correct, then every person uses roughly three quarters of a tonne of wood every year. With the global population expanding at roughly 3% per year, it is folly to assume that demand for timber will decrease. Britain was the third largest global net importer of timber in 2011 and will never be able to grow enough trees to satisfy its domestic demand for wood. To be clear, the type of wood in question is produced by commercially grown conifer trees. The timber-processing sector in the UK is one of the most technologically advanced in Europe. If your mental image of forestry is set in sepia tones with blurred edges, then it is time to think again. A log can be passed through an automatic system of laser measurement, cut efficiency scan, cleaning, de-barking, cutting and finishing in under five minutes. Who is forestry investment suitable for? Whilst many people are aware of Harvard and Yale University endowment funds holding large forestry investments, not many people know that Essex County Council has just invested £60 million of its pension fund into global forestry, or that the Church Commissioners for England hold £4 million and rising in UK forestry investments. Generally speaking, pension and endowment funds are risk averse. Individuals and families with a similar attitude to risk could benefit from exposure to forestry. Individuals considering forestry ought to have; a high personal net worth, a balanced and established investment portfolio, and the capacity to invest above £500,000. For those not willing to part with over £500,000, Honour Capital provides a Club Investment service that allows small groups of investors to pool funds and gain access to forestry with smaller personal contributions.

personal finance & wealth management supplement the barrister 2014

Wise investments for clever people Explore forestry investment at honourcapital.com

How should I invest in forestry? This article centres on direct investment into forestry. For clarity, this is the purchase of land with trees growing on it. It is possible to invest in forestry through a fund. There are approximately 180 forestry funds in existence today. Of those funds operating in the UK, our view is that they are expensive and present the investor with unnecessary levels of risk. In June 2013, the Financial Conduct Authority (FCA) restricted the marketing of forestry investment funds, limiting their exposure to ordinary investors. If you are tempted to invest in a forestry fund, do make sure the FCA approves the fund and its managers. Financial performance The Investment Property Databank (IPD) provides the only measure of forestry investment performance in the UK. In 2014 the IPD stated that 3 year returns from forestry investment in the UK were 22%. This outstanding performance caught the attention of the UK financial press, but we would argue that it should be ignored because forestry is not suitable for short-term investment. A more reliable indicator of performance is given when we consider the 21 year annualised returns from forestry, which were 8.5%. That’s better than equities and gilts over the same period, and directly comparable to commercial real estate, which has become an accepted staple of most investment portfolios. Income returns from forestry in the UK over the last 21 years were -1%. This means that the financial performance relies entirely on capital growth.

Negative income returns should not be confused with zero income. Forestry investments will produce income that is often substantial and highly tax efficient. To understand the capital growth aspect of the investment, it is best to keep things simple. As a tree grows it gains height and weight. As it reaches maturity it has the greatest volume and therefore has the greatest monetary value. The value is realised when the tree is felled and sold. At this point, new trees are planted and the capital appreciation process restarts. Currently, it is reasonable for an investor in UK forestry to expect real (without inflation) returns ranging from 3% to 6%. Commercially viable investments in the UK start at around £500,000 – as we mentioned earlier, this doesn’t need to come from one investor. Forestry is not correlated to other investment classes. It is a good portfolio diversification tool and will track inflation.

Tax Advantages For many investors, it is the substantial tax advantages that make commercial forestry ownership in the UK so attractive: •

100% exempt from Inheritance Tax after two years of ownership

•

Receipts from timber sales are 100% exempt from income tax

•

Capital growth in timber is 100% exempt from capital gains tax

Example: Investing in forestry to protect wealth from Inheritance Tax Inheritance tax is charged at 40% on an estate when somebody dies. It is also payable on some lifetime gifts and transfers.

If an estate is valued at less than £325,000 no inheritance tax is payable.*

Let’s assume your estate is worth £1,000,000. The value of your estate exceeds the inheritance tax threshold by £675,000. This is simply calculated as follows:

personal finance & wealth management supplement the barrister 2014

£1,000,000 - £325,000 = £675,000

£675,000 will be subject to a 40% inheritance tax charge of £270,000.

By investing £675,000 in UK timberland at least 2 years prior to death, you will protect all of your estate from inheritance tax and will not have to pay HMRC a £270,000 bill.

In addition, because of the biological growth of trees, your heirs will inherit an asset that will have increased in value from the point at which you invested. This increase in value is exempt from tax. * HMRC Website. 2013/2014

In addition, investors with capital gains to rollover can use the land element of an investment in forestry for capital gains rollover relief. With just 13% forest cover in the UK (compared to an average of around 25% forest cover in the rest of Europe) the UK government is keen to promote forestry. It announced in 2011 that tax reliefs that forestry investors enjoy shall remain untouched.

Matching Future Liabilities An investment in forestry can be flexible and enjoyable. However, we believe that the ability to use an investment in forestry to match a future liability such as school fees or elderly care is often overlooked.

Example: Investing in forestry to cover elderly care costs. A 50 year old investor acquires a 100 hectare forestry plantation containing newly planted commercial conifers. On their 85th birthday, the investor decides to move into a residential nursing home. The forest is now 35 years old, and ready to harvest. The investor harvests 50 hectares. They sell the timber at £30.00 per tonne. Each hectare generates 350 tonnes of timber.** The harvest generates £525,000 There is no tax payable on income from harvesting. According to the Daily Telegraph* the average cost of nursing care is £36,000 per annum. The income from harvesting will cover 14 years of nursing care. 50 hectares of the forest remains available for harvesting, and new trees can be planted on 50 hectares to restart the capital growth cycle. The entire investment is exempt of inheritance tax.

*Daily Telegraph “Long term care: Elderly face long wait for cap on fees” March 2013 ** Figures represent a good quality forest investment in the UK as at January 2014

personal finance & wealth management supplement the barrister 2014

Risk Across the financial press and wealth management sector, forestry investment is commonly presented as a low risk investment. Our opinion is that a small number of risks that do exist, and these are significant. The three main risks are: • Liquidity risk: to exit your investment, you need to sell your forest. This can take weeks or months depending on the quality of your investment and the market sentiment at the time. Selecting the best investments at the point of entry will mitigate liquidity risk. • Natural hazards: trees may be vulnerable to disease or damaged by fire and wind. In some cases fire and wind insurance is available. • Market risk: the price of timber – like any commodity - will rise and fall. Unless you are absolutely reliant on income from your investment at a specific point in time, the risk is substantially mitigated by the fact that trees can be left to grow and gain value when markets fall. At Honour Capital, we believe – and can verify - that diversification and management can substantially minimise risk in forestry investment. In summary, forestry investments ought to generate strong returns. Forestry is excellent for families anticipating inheritance tax issues or those needing to match projected future liabilities. The combination of increasing global demand for timber, improving environmental management and certification, sensible real returns and superb tax efficiency make this a worthwhile investment consideration. Edward Anderson-Bickley MRICS : eab@honourcapital.com Honour Capital advises on investment selection, appraisal and management of forestry assets. Honour Capital operates in the UK and internationally and is regulated by the Royal Institution of Chartered Surveyors. Edward Anderson-Bickley is a qualified chartered surveyor and is Managing Director of Honour Capital.

personal finance & wealth management supplement the barrister 2014

Why Buy Gold? â&#x20AC;&#x201C; A Safe Haven By Oliver Temple

coin has a purity of 99.99% as does the Australian Nugget, both being 24k. Most bullion coins are minted in 1/10oz, 1/4oz, 1/2oz & 1oz form. One ounce gold bullion coins such as Krugerrands or Britannias, as well as the smaller coin, the British Sovereign, are by far the most popular for our clients.

Both small investors and

institutions are attracted to owning legal tender bullion coins and recognise the advantages of the divisibility afforded by them. Some choose to take possession of their coins and others have us store them on their behalf in our bank vaults in the City. Buying investment grade gold bullion for investment is stamp duty free and tax free (VAT exempt) in the UK and EU due to the EU Gold Directive of 2000.The British coins, the Sovereign and the Britannia, are also completely free of Capital Gains Tax. Like most commodities, the price of gold is driven by supply and demand as well as speculation. However, given the substantial quantity of gold stored above-ground compared with the annual production, the price of gold is affected more by changes in sentiment rather than changes in annual production. As gold continues to be regarded as a natural hedge against inflation, currency fluctuations and instability in the financial system, sentiment on any of these issues has a major affect on the gold

UK citizens can, as of April 2006, invest in gold bullion through their SIPPs. SIPPs are designed for people who want to manage their own pension funds by investing in asset classes of their choice. SIPP Investments are topped up in the form of tax relief, whereby individuals can claim up to 40% back depending on their income tax band. Investors should consult their tax advisors

bullion price.

on this matter before proceeding.

Gold has long been considered the most desirable of precious

Modern bullion coins allow investors to own investment grade

metals, and its value has been used as the â&#x20AC;&#x153;gold standardâ&#x20AC;? for many currencies. It is a symbol for purity, value, royalty, and in particular, roles that combine these properties.

gold in a convenient form and to buy and sell them at prices relatively close to spot price of gold. oliver@goldinvestments.co.uk

Modern bullion coins allow investors to own investment grade gold, as coins are at a small premium to the spot price of gold as quoted on the markets. The price of bullion coins and bars is determined primarily by the gold price and handling costs. Bars are available in various sizes such as the 1 kilogram (32 oz), the1oz bar, the 10oz bar, the 5g bar, the 10g bar, the 20g bar, the 50g bar and the 100 g bar. Coins are available in 22ct and 24ct purity. Among the 22ct

bullion coins available for investment are

the American Gold Eagle, the South African Krugerrand, first released in 1967, the Britannia, and the British gold sovereign, as well as the half sovereign. The Canadian Gold Maple Leaf

personal finance & wealth management supplement the barrister 2014

Avoid becoming the taxman’s next victim with taxefficient planning By Riki Gangola, Partner, RDP Newmans LLP

HM Revenue and Customs (HMRC) is cracking down on unpaid

With property prices rising – and the nil rate IHT band frozen

tax payments and is increasingly targeting professionals such

at £325,000 until 2017-18 – the families of many more people

as barristers.

could find themselves vulnerable to inheritance tax liabilities if they fail to take IHT planning measures.

The tax authority recently revealed it had increased its tax take by 15%, up £3.2 billion on last year, bringing in a record £23.9

Making use of lifetime gifts is a good way to reduce your estate

billion from increased activity on unpaid tax.

– although these will still be subject to IHT if you die within seven years of giving the gift, which is why it is crucial to make

The figure is nearly £1 billion higher than the target set by

early plans.

George Osborne in the Autumn Statement in December, and

There are other reliefs available including woodland, heritage,

serves as a reminder of HMRC’s intent to crackdown on tax

farm and business.

avoidance and evasion.

If you have multiple trust funds you could soon see your Inheritance Tax (IHT) bills rise significantly.

Failure to keep your tax affairs up to date could trigger an investigation which could lead to substantial penalty fines,

HMRC has proposed a special “settlement” nil rate band in

interest payments and for serious offences even jail sentences.

order to simplify relevant IHT charges.

In the current climate, HMRC is in no mood to let people and

Taking effect from 6 April 2015, but applying to any settlement

businesses of the hook lightly.

established or property added to a trust after 6 June 2014, the “settlement” nil rate band would last an individual’s lifetime.

However while HMRC is clamping down on tax evasion, this does not mean that you cannot use legal, tax-efficient planning

Currently a nil rate band of £325,000 is available to all

solutions to ensure that as much of your wealth is protected as

individuals before IHT is chargeable. Where individuals give

possible.

away property to trusts during their lifetime the nil-rate band refreshes every seven years. In principle that means that an

Being aware of Inheritance Tax (IHT) rules is particularly

individual could set up a trust up to the value of £325,000 every

important when protecting your finances.

seven years, with no IHT payable by the trustees.

According to recent research more than half of people liable

The new IHT regime will mean that individuals will have to

to IHT on their estates could face unexpected tax bills because

specify how the nil-rate band would be divided between any

they do not know the correct tax threshold.

trusts they establish.

Recent research revealed that in a survey of more than 1,000

Under the new rules many trusts that were previously IHT

adults with personal assets worth more than £325,000 – the

free would fall into the tax net, increasing the total IHT charge

level at which inheritance tax is levied at 40 % – only 47% knew

payable by trustees.

the correct threshold. A total of 14% thought the threshold was £500,000 or more.

personal finance & wealth management supplement the barrister 2014

In its consultation document, HMRC illustrates the point by

explaining that under existing rules, a couple aged 40 could

There are many ways to keep capital gains tax bills as low as

give away £3.25 million to trust, by the age of 75, with no IHT

possible, including making full use of an individual’s tax-free

cost. Under the new rules, this would drop to £650,000.

allowance. For married couples and civil partners this means up to £22,000 of any gain can be tax-free in 2014/15.

It is also important to consider planning for potential Capital Gains Tax (CGT) liabilities.

CGT is not payable on the sale of you main home, however if you live in more than one property you can nominate one

CGT is levied on the sale of most assets which exceed an individual’s annual exemption. It has major implications for barristers who are thinking of retiring, particularly if they want to sell assets to fund their retirement. For example people will have to pay CGT on assets or trust portfolios they are looking to sell to fund retirement.

property as your main home. However, The Government has proposed that, from April 2015, HMRC will have the power to decide which property will be taxed depending on where you spend most of your time, rather than you being able to elect a home as your principle residence. This follows a reduction in the time period you have to sell a second home before Capital Gains Tax (CGT) is charged,

CGT is currently charged at 18% on total taxable gains for basic

from the final three years of ownership if a second property

rate taxpayers and 28% for higher rate tax payers. A reduced

is declared a main residence, to 18 months. CGT is currently

10% rate may apply in certain circumstances.

charged at 28% for higher rate taxpayers on any gains following the sale of a second home.

The CGT annual exemption limit is £11,000 for 2014/15, while this is being raised by 1% from 2015/16.

Other ways of reducing CGT include investing directly in an ISA

personal finance & wealth management supplement the barrister 2014

or a pension fund, giving shares to charity, or investing in an

qualifying period.

Enterprise Investment Scheme (EIS). Losses from the disposal of shares can be offset against Income Changes to ISAs announced in the Budget in March, mean that

Tax, if Income Tax relief has been given and not withdrawn.

savers can now invest more of their cash tax-free and have more flexibility over their pots with the new “super-ISAs” which

By utilising efficient tax planning measures now you can ensure

came into play on 1 July.

that you keep as much of your wealth as possible, allowing you to live the life you choose, and making any future retirement as

These new ISAs have a more generous annual allowance of

comfortable as possible.

£15,000 that can be held in stocks and shares, cash or any combination of the two.

For more information on Inheritance Tax planning, Capital Gains Tax planning, trusts and estate planning or pensions

Isas became “New ISAs”, also known as NISAs, on 1 July. This

advice, visit RDP Newmans’ Barristers Microsite

applies to all existing ISAs as well as new accounts opened after

www.rdp-barristers.com.

this date. Previously, people have only been allowed to save up to half of their annual Isa allowance in cash and the remainder in stocks and shares. Any money already placed into an Isa during the current tax year, which started on April 6, counts towards the new £15,000 super-Isa subscription limit for 2014-15. Under the new rules, savers can transfer previous years’ Isa savings freely between stocks and shares and cash if they wish. It is important to remember to make sure that any transfers individuals want to make from other ISAs stay within their “tax-free wrapper” rather than simply withdrawing the cash to deposit elsewhere, as the funds will then lose their status of being ring fenced from the taxman. Investing in an Enterprise Investment Scheme (EIS) or Venture Capital Trust (VCT) can lead to substantial income tax and CGT reliefs. Income tax relief is available for investors at 30% of the cost of the share, on a maximum annual investment of £1,000,000. Capital Gains Tax can be deferred if reinvested in EIS shares within a certain amount of time. Any profit on the sale of shares will be exempt from CGT if Income Tax relief is given and the shares are held for a

personal finance & wealth management supplement the barrister 2014

Investors in international equity ETFs are exposed to two

foreign exposed fund (e.g., Japanese yen, Canadian dollars,

main risks: the direction of the equity market in which they

US dollars) were to decline against the pound (GBP) while the

have chosen to invest; and the foreign currency exposure that

investor held the fund. Investors should of course be aware that

is often a by-product of an equity investment, but which has

the opposite is also true. That by buying a fund with currency-

the potential to derail returns. Without any currency hedging in

hedging, they are also forgoing the potential upside which

place at all, investors are taking an implicit bet on the foreign

would occur if the underlying foreign currency rose against

currency strengthening, which may or may not be consistent

GBP during the period the investor was in the fund.

with their macroeconomic view. US equities also provide a good recent example of the benefits To illustrate the extent to which currency movements can impact

of currency hedging. The chart below shows the historic

returns: a local Japanese investor holding the Nikkei 225 from

performance of the MSCI USA index (from 26.08.2014 to

1st January 2012 to 30th June 2013 would have achieved a

31.05.2014), where an annualised return of 21.65% for local

66.9% return in Yen terms, while a US-based investor in the

US dollars (USD) investors falls to 11.16% for a British-based

Nikkei 225 through that same period would have experienced

investor where no currency hedging was in place. By contrast,

considerably less impressive returns of 29.3% due to the steep

if the British investor had opted instead for the MSCI USA GBP-

depreciation of the Yen through that period. (Source: Bloomberg)

hedged index, they would have experienced an annualised return of 21.60%, very close to that of the local US investor.

It is a generally accepted view that currency risks exist primarily in the short to medium term, but less so in the longer term.

Large institutions have little difficulty in accessing the foreign

That is to say, over the long term currency movements do not

exchange market and thus can chose to implement currency

tend to add or subtract from investment returns as they usually

hedging overlays across their entire portfolio. Unfortunately,

average themselves out. In the short run currency movements

this is not often possible for some mid-sized and the great

can be quite dramatic and can have a major impact on the

majority of smaller investors in part due to a lack of solutions

returns of the underlying investment as was exemplified by the

on offer to them. Thus, there has been an increasing demand

Nikkei example highlighted above.

from UK and foreign investors alike to access key international equity markets with currency hedging built into funds such as

However, predicting currency movements is notoriously difficult

ETFs.

and with concerns about currency volatility increasingly on investors’ minds, many want to neutralise this uncertainty on

Ultimately, investors will have an increasing choice of funds

investment returns so as to access the underlying investment as

which offer currency hedging – particularly with ETFs. Where

cleanly as possible.

investors want exposure to a particular country or region’s stock market without having to take any specific call on the direction

Currency hedging acts to neutralise the effects of currency

of that local country or region’s currency, a currency-hedged

fluctuations on the underlying investment. Simply, when an

ETF offers very easy and cost-efficient access to international

investor buys a fund with a currency hedge embedded in the

equity indices.

product, they are trying to protect themselves from potential losses which would occur if the underlying currency of that

Finally, investors should be aware that if a fund has a GBP

personal finance & wealth management supplement the barrister 2014

listing, that does not make it a GBP-hedged ETF. Only a

About UBS ETFs

currency-hedged product can offer protection for an investor from a declining foreign investment currency. Currency hedging in itself cannot guarantee that the value of your investment won’t decline. Chart:

UBS Global Asset Management, a business division of UBS, is a large-scale asset manager with well-diversified businesses across regions, capabilities and distribution channels. Passive capital investments have been a core competence of UBS Global Asset Management for over 30 years. Overall, this business unit, which also includes UBS ETFs, has assets under management amounting to GBP 124.2 billion (31 March 2014). Assets under management in UBS ETFs amount to around GBP 11.2 billion (April 2014). Thus, UBS is one of Europe’s leading ETF providers in terms of assets under management and Europe’s second largest provider of physically replicated ETFs (relating to the ETF offer). UBS ETFs has a broad spectrum of ETFs for all key markets and investment classes. UBS ETFs offer investors over 100 ETFs in the fields of equities, bonds, precious metals, real estate, commodities, alternative investments and multi asset portfolio. UBS ETFs are listed on all of Europe’s leading stock exchanges: on the London Stock Exchange (LSE), Borsa Italiana, the German Stock Exchange (XETRA) and the SIX

Source: Bloomberg, UBS Global Asset Management, as per 3 June 2014

Swiss Exchange.

For more information on UBS ETFs: www.ubs.com/etf

Source: Bloomberg, UBS Global Asset Management, as per 3 June 2014

personal finance & wealth management supplement the barrister 2014

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BEAUTIFULLY CRAFTED WEALTH MANAGEMENT SOLUTIONS DESIGNED TO FIT YOU PERFECTLY. I am Edward Wilby, an Independent Financial Adviser with Coloma Wealth Management based in the City of London, offering a truly bespoke and individual service to clients throughout the UK. My aim is to provide • Fair and unbiased independent financial advice • Financial products and solutions tailored to the client’s needs • Advice at a fair and reasonable fixed or hourly-rate fee • Client confidence and satisfaction Before qualifying as an Independent Financial Adviser, I worked in the City of London as an investment banker. My previous experience and subsequent qualifications enable me to advise on all aspects of regulated financial investments, interface confidently with investment institutions, understand financial products and, where necessary, liaise with the chosen fund providers and discretionary management teams - especially helpful for those clients nearing retirement. I have the experience of providing advice throughout the spectrum of professionals, from advising a £1.5 million

Coloma Wealth Management, 2nd Floor, Mitre House, 12-14 Mitre Street, London EC3A 5BU

t: 020 3603 5910

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