Bumper year MAX60%

was first announced by Socialist Party Prime Minister Pedro Sanchez in March, ahead of International Women’s Day.

Ministers have now announced further details that had been approved, which will affect panels in the judiciary, such as the Constitutional Court, the Audit Court and the CGPJ legal watchdog. These bodies will also have to ensure that women account for at least 40% of members. Another of the modifications announced include a more flexible timetable to introduce the changes in the workforce.

Companies listed on Spain’s Ibex 35 stock exchange, for example, will have to have a minimum of 40% female board members by June 2024.

“With this law we are taking a major step toward effective equality without establishing disproportionate demands on large companies,” said Economy Minister Nadia Calviño.

She added that the legislation, which will now be sent to Congress for debate and approval, will put Spain ‘on the cutting edge in terms of equality and in terms of the breaking of the glass ceiling’.

WHY HAVE DISCRETIONARY FUND MANAGERS (DFM’s) AND MODEL PORTFOLIOS (MPS’s) PRODUCED NEGATIVE RETURNS IN 2022?

WITH COVID-19 restrictions now a distant memory, the tourism sector in Spain is enjoying a bumper 2023. According to figures from the National Statistics Institute (INE), hotel stays were up 21% on the year before to 80.9 million during the first four months of the year.

This exceeded the level seen in 2019, before the coronavirus pandemic hit.

The INE figures show that there were 28 million hotel stays in Spain in April, which is an 11.5% rise on the year before.

For January to April of this year, there were a total of 80.9 million hotel stays.

Foreign

The major increase was thanks to foreign visits, which were up 16% in April compared to the year before for a total of 17.3 million.

The INE also reported that the preferred destinations for foreign visitors were the Canary and Balearic Islands as well as Catalunya, while the domestic market preferred Andalucia, Catalunya and the Valencia region.

IF you have placed your pensions, savings and investments with a financial adviser there is a strong possibility you are invested in a model portfolio service (MPS) whereby you delegate the execution of an agreed investment strategy to an investment house.

The 60/40 model portfolio, which consists of 60% equities and 40% bonds, has been a popular and successful investment strategy for well for over 50 years. A combination of growth and income providing a safe way for investors to grow their investments without taking excessive risk. However, in recent years, experts have questioned whether these models can continue to deliver risk adjusted positive returns moving forward. The criticism centres around a lack of diversification to mitigate risk.

There have only been a handful of occasions in 100 years, generally considered as ‘Blackswan Events,’ (abandonment of the gold standard and World War II) where bond prices haven’t gone up in value when equity prices have fallen.

Interestingly, the current macro-economic environment is frighteningly similar to stagflation in the 1970’s; where the strategy also proved ineffective!

The 60/40 model worked well in the past because shares and bonds were negatively

 Understanding domicile, avoiding UK inheritance tax, and positioning your assets.

 Andalucía’s improved succession tax rates and the benefit to your family.

 Ensuring your wills are correctly scripted to achieve your wishes.

Small group sessions, held in our local offices correlated delivering a diversification effect. The equity element performed well in good times, with safer assets like bonds appreciating in value and providing a yield during bad times.

We may hold more sessions, depending on demand.

Keeping interest rates artificially anchored at zero has destroyed that inverse relationship. In recent years equities and bonds have become more positively correlated resulting in both asset classes moving in the same direction more often, which has made these portfolios more susceptible to market downturns.

In conclusion, while the 60/40 model portfolio may have been a reliable investment strategy in the past, its relevance in today’s market is being questioned. As a result, you may need to explore alternative investment strategies to achieve your investment objectives. An actively managed portfolio which invests in a broader range of asset classes may offer potential benefits and may be worth considering for investors seeking better returns and more effective risk management in a debt ridden, slow growth, inflationary environment.

We are in the Costa del Sol fully available for meetings throughout the week from Sotogrande to Nerja and inland Andalucia.