Redmayne-Bentley Investment Column: The end is nigh

  
 
 Georgina Mitchell
Head of Investment Services
www.redmayne.co.uk

FROM cricket to guest lists via coconuts and vultures, I have touched on a wide variety of topics in this column over the last six months. As I write my final column I thought I would refresh your memories of what I have covered in this whistlestop tour of investment.

I started in December with a cricket-themed explanation of the calculation methodology for probate valuations and later in the month set out Redmayne-Bentley’s predictions for 2011. It is good to see that five months in the consensus is still on track and our two ‘coconut contrarians’ are still out on a limb. January was about new starts: reviewing old paperwork, in particular investment bonds and pensions to make sure they are invested appropriately for your current circumstances and that you are making the most of the tax advantages and have assessed the charges. Do you still have a draw of undiscovered potential?

Early February addressed the issue of how to generate an income when interest rates are so low and amid talk of a ‘bubble’ in fixed interest investments. I explored alternative options such as convertibles, preference shares, and proxies such as infrastructure. Later that month I touched upon the sweeping changes being made in Financial Services due to the Retail Distribution Review (RDR) and how that impacts on qualifications and may potentially result in some firms having to outsource their investment business. If you are exploring that as an option we may be able to help.

March brought us into the ISA season: how to shelter income and gains from the tax man, starting early to maximise the benefit, along with tips on constructing a portfolio to meet your needs. We also touched on Junior ISAs and we continue to collate names of people who may be interested in investing for any child under 18 without a child trust fund so we can send on details once the product is finalised.

In April I sounded a note of caution about one of the biggest issues in investment for unwary individuals – the vultures that are operators of boiler room scams. With an average loss of £122,000 the tips on how to recognise and avoid these fraudsters are invaluable.
Finally last month was about new companies coming to market, why the accessibility varies from one new issue to the next and how to get on that ‘guest list’.

So as I approach the end of the run, where to go from here? The old stock market adage ‘ Sell in May and go away, come back on St leger’s Day’ refers to the fact that only three per cent of all stock market returns come in the months May to September. So things are likely to quieten down for a few months, depending on what happens in Europe and the Middle East of course – an exogenous shock as unexpected events unfold can be the X-factor that throws the old adages out of the window.

So you can’t take your eye off the ball, but the summer is a good time for a reassessment and review of all of your affairs. Remember the four key points:

• How has the investment performed?
• Does it still meet your objectives; have your circumstances changed?
• Do the existing investments fall in line with your attitude to risk?
• Do you need further advice?

As ever, Redmayne-Bentley is available to answer any queries you may have and offers a free, no-obligation, review of your financial affairs.

So the end is nigh for this column, but for you the journey may be just beginning. Good luck!

For further information on any of the products and services discussed: outsourcing due to RDR; portfolio construction; traditional or alternative investments; Junior ISAs or a review of your financial affairs please email g.mitchell@redmayne.co.uk  or visit www.redmayne.co.uk