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What was in the weekend’s papers? (03/08/2020)

Category: News

FINANCIAL TIMES

“Will superfunds come to the rescue of UK pensions?”

Covid-19 adds to pressure on final salary schemes to consolidate.

COMMENT: The guaranteed income these types of schemes offer is only as strong as the performance of the scheme’s investments and the ability of the company backing it to meet any shortfalls. Anything which can increase the resilience of these schemes is welcome.

“Investors target pandemic-afflicted stocks as lockdown lifts”

Travel and leisure companies are among the top trades for retail investors as debate rages over a second wave of infections.

COMMENT: One of the key rules we use to guide us when recommending investments is to prudently diversify. This is because no one can predict the future. Whilst there are some scenarios where travel and leisure companies recover quickly, there are others where there could be further pain to come. A second wave of the virus is just one of these. We believe investing into a wide range of companies in a wide range of sectors and in a wide range of countries takes as many potential scenarios into account as possible.

“UK house prices enjoy surprise rebound in July”

Release of pent-up demand and changes to stamp duty thought to be behind gains.

COMMENT: We covered this two weeks ago in this post.

“HMRC targets wealthy in push on tax evasion”

Data show 430 investigations launched in 2019-20, a 26% rise on previous year.

COMMENT: While we help our clients minimise their tax, we always use established, government promoted, tax reliefs and allowances. We never recommend anything “off-piste” as HMRC are an organisation you do not want to get on the wrong side of.

“What a change to CGT could mean to you”

A forthcoming review of how capital gains tax is paid has worried those who fear it will lead to higher levies.

COMMENT: We covered this two weeks ago in this post.

 THE TIMES

“Investors fork out millions for frozen funds”

Savers can’t get their cash out of property investments, but are still paying hefty fees.

COMMENT: We recommended to clients in our standard portfolios that they switch out of property funds last year. If we had not, we would be respectful of the fact that there is still work to be done to manage the funds but we would be having discussions over the fees being levied.

“Will the gold price reach $2,000 — and keep going?”

Bullion can be a safe haven during market uncertainty and the price has soared. Commentators say it’s not too late to get in on the action.

COMMENT: You can find our thoughts on investing in gold here. Whilst the gold price has risen recently, it is not the only investment that has gone up in value. We believe a widely diversified portfolio with a long term view is the best strategy for your clients.

 THE TELEGRAPH

“Unilever is now Britain’s largest business – but is this the kiss of death for returns?”

Buying the largest stocks in Britain has often proven to be a poor investment strategy.

COMMENT: As stated before, one of the key rules we use to guide us when recommending investments is to diversify. We would never recommend someone hold, or not hold a share in a company based on its size.

THE GUARDIAN / OBSERVER

“Furloughed workers three times as likely to default on a payment”

Consumer group finds 6% have missed loan or credit card payment in sign of impact of coronavirus.

COMMENT: There has been some discussion recently about how this epidemic has affected the measures we should be putting in place to cover the costs of the worst happening. We will publish a post on this later in the week.

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