Client Blog | Netwealth
Client Blog
Last June I wrote a column in the Financial Times saying that interest rates should – and would – stay higher for longer in western economies. At that time it was not the accepted norm. It is now.
We often hear about the importance of reviewing our wills and estate plans, but what about your pension? When you pass away, your pension will normally not be part of your estate and therefore exempt from inheritance tax. So have you ever thought about what happens to it after you're gone? That's where something called an 'expression of wish' form comes in.
We have recently undertaken our annual strategic review of asset allocations for our various ranges of risk level portfolios. This is an important part of our investment process where we determine what the expected long-term return and risk characteristics are for different investment types, and consider how we expect each component to behave in relation to one another, in a range of market environments.
In recent years, Japanese stocks have enjoyed a period of stellar relative performance. Their resilience during the broader market weakness of 2022, followed by their outpaced rise during 2023 and so far in 2024, has been especially striking.
Three issues come to the fore in the wake of yesterday’s Budget. First is the fundamental challenge of Britain’s weak trend rate of growth. Second is that while the two pence cut in national insurance was welcome, it should not divert attention from the need for tax simplification and reform and that the UK’s tax take is high and still rising. Third, the challenge of low public investment, and the challenges facing non-ring-fenced departments in coming years.
Last week, SJP, the largest wealth manager in the UK, saw its shares fall 30% in a single day. The catalyst is increased regulatory concern about fees and ongoing services driven by the introduction last July of the Consumer Duty. The regulator is, once again, having to introduce legislation to ensure that financial consumers are being treated fairly and getting value for money.
Watch a short video update from Iain Barnes, Netwealth's chief investment officer, running through drivers of performance and sharing some insights into how our clients' portfolios are positioned in the current environment.
Let me highlight three areas to focus on this March: the UK Budget; China’s annual Two Sessions meeting in Beijing; and the latest inflation data in western economies.
This column by Gerard Lyons appeared in The Times on Monday 19th February, 2024.
Team Contributors
Gerard Lyons
Iain Barnes
Simon McConnell
In The Press
-
Read what the press have to say about Netwealth
