A third of investors expect annual returns of 10% to 19% – why so optimistic? March 16, 2018 | City Talk The Global Investor Study carried out by Schroders in 2017 found that investors’ expectations of returns are high. More than a third were looking for a return of 5-9% per annum, over the next five years, while 31% expected 10-19%. Those investors looking for income have similarly high targets, with our 2016 study finding that [...]
Make the most of your tax breaks before the end of the tax year March 15, 2018 | City Talk ISA allowance ISAs are often the first port of call for investors looking to save tax. They are simple, flexible and tax-efficient. By using your full ISA allowance each year (£20,000 in the current 2017/18 tax year) it’s possible to build up a large pot of money sheltered from capital gains tax or income tax. [...]
Don’t underestimate the power of pensions March 14, 2018 | City Talk Whether you are new to investing or nearing retirement, pensions are likely to be an important consideration. When you make a contribution to your pension, the government adds money. This is called tax relief and is one of the main advantages of using a pension to save for retirement. Not everyone is aware of this [...]
What does recent market volatility mean for bonds? March 14, 2018 | City Talk Markets were hit by the highest levels of volatility recorded in nearly a decade last month, fuelled by better than expected inflation data and a subsequent spike in global bond yields in January. After the spike in bond yields in January, February’s price action was a bit more measured. Total returns in the core government [...]
Can Fevertree shares continue to rise? March 14, 2018 | City Talk Fevertree Drinks shares were looking distinctly flat today, falling almost 5 per cent in morning trading after it issued its full-year numbers. We already knew that sales were up an impressive 66 per cent year-on-year, as this was revealed in its January trading update. Operating profits also came in about 1.4 per cent ahead of [...]
Why we don’t expect a UK interest rate rise until November March 13, 2018 | City Talk Forecasts for UK interest rates have moved significantly. The Bank of England, which ordered an increase from 0.25 per cent to 0.50 per cent in November, has signalled that it is ready to raise rates faster than previously thought. The Bank’s closely watched quarterly Inflation Report, published last month, pointed to the prospect of excessive [...]
Five retirement income risks March 13, 2018 | City Talk Investing always involves taking some risks. However, there are a further set of risks relevant to those in retirement and needing to take income from their investments. These are important to consider when planning finances later in life. We suggest making a full assessment of these risks ahead of retirement, or obtaining advice or guidance [...]
The big winners from an Aramco listing will be the bankers March 13, 2018 | City Talk Britain’s bankers and City advisors are very excited about the mooted flotation of Saudi Arabia’s state-owned oil company Aramco. The potential fees – and therefore bonuses – generated are likely to be astonishing. It will be trebles all round, as they say in Private Eye. However, as an investment proposition there may be less to [...]
Darktrace’s bright future: The CEO behind the company tipped to be the UK’s next tech unicorn March 12, 2018 In the heart of London, in the middle of the Strand, the office of Darktrace sits almost like a fortress; a sea of calm in the chaos and uncertainty that reigns in every global city. From here, maths whizzes and former intelligence officers have helped build a product sought after by multi-billion pound companies keen [...]
How reinvesting FTSE 100 dividends has affected Isa returns since 1999 March 12, 2018 | City Talk Reinvesting dividends is one of the most powerful tools available to boost returns over time. Investors in the FTSE 100 would certainly have noticed the difference over the last 18 years. For instance, if you had invested £1,000 on 31 December 1999 in the FTSE 100, the capital growth would have produced a notional return [...]
