News / Views

Follow our regular updates to stay up-to-date with current financial planning and investment issues. We regularly publish press clippings, articles and thinkpieces that we think might be of interest to our clients.

Stock markets ended 2018 in nervous mood, as the World index declined by over 10% in the final three months of the year. Some commentators attributed the setback to fears of slower economic growth in 2019; these concerns were partly provoked by the disruption caused by President Trump’s trade battles. Brexit-related uncertainties also impacted sentiment in the UK and Europe.

This note summarises the main pension rules in terms of the contribution and benefit limits, the treatment during the accumulation phase and the exit options (including death benefits), matters which should be considered for any investment, and to provide our general guidance and comments.

The Balanced Model Portfolio aims to achieve long term investment returns from a combination of lower risk and lower volatility assets (e.g. cash and/or bonds) and higher risk and higher volatility assets (e.g. real assets and company shares).

The Adventurous Model Portfolio aims to achieve long term returns from a greater proportion of higher risk and higher volatility assets (e.g. real assets and company shares) than lower risk and lower volatility assets (e.g. cash and/or bonds).

The Highly Adventurous Model Portfolio aims to achieve long term returns from a greater proportion of higher risk and higher volatility assets (e.g. real assets and company shares) than lower risk and lower volatility assets (e.g. cash and/or bonds). The other available Models are Conservative, Balanced, Moderately Adventurous and Adventurous, which all have lower risk/potential return.

“...austerity is coming to an end – but discipline will remain” were the words the Chancellor, Philip Hammond, used to summarise his October Budget speech. That balance between continued cuts and excessive borrowing was evident in the measures announced.

Our investment strategy continues to be based on the belief that the world economy should continue to prosper for the foreseeable future, enabling productive businesses to continue to thrive. We expect stock markets to deliver attractive returns in the medium and long term and our recommended asset allocation still favours company shares.

The Highly Adventurous Model Portfolio aims to achieve long term returns from a greater proportion of higher risk and higher volatility assets (e.g. real assets and company shares) than lower risk and lower volatility assets (e.g. cash and/or bonds). The other available Models are Conservative, Balanced, Moderately Adventurous and Adventurous, which all have lower risk/potential return.

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