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What was in the weekend’s papers? (10/08/2020)

Category: News

FINANCIAL TIMES

“Can active fund managers deliver higher returns than ETFs?”

Despite the lure of beating the index, for every winner there is a loser and higher costs can erode gains.

COMMENT: What this refers to as the “Zero Sum Game” when investing. The conclusion of this is that the higher costs are, the lower the chance there is of being a “winner” when investing. Our investment process reflects this and only uses “active” funds when we have a lot of conviction in their ability to outperform.

“Q&A: 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 in this post.

THE TIMES

“More controversy over the handling of Woodford’s failed fund”

Plans to oust Neil Woodford and dissolve his fund may have been considered only a month after investors were banned from taking out their money — a move that ultimately cost them £1 billion.

COMMENT: This is an example of why looking at what goes on behind the scenes in a fund is just as important as looking as performance. This is something we take seriously and we consult with some of the countries leading fund due diligence services to look at this.

THE TELEGRAPH

“How would a wealth tax work and what would it look like?”

Property wealth is a vast and mostly untapped source of potential tax revenue.

COMMENT: We looked at this in this post.

“Four stocks to buy to benefit from rising gold and silver prices”

Mining company shares outpace precious metal prices when rising, but also when they fall.

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.

“Gold is flying – should you buy other ‘alternative’ investments as well?”

Options include coins, wine and cars but the assets split the crowd.

COMMENT: We believe a widely diversified portfolio with a long-term view is the best strategy for your clients. We would not recommend investing in esoteric assets which are hard to value and at times hard to sell.

THE GUARDIAN / OBSERVER

“Tax affairs of 246 footballers being investigated by HMRC in 2019-20”

Players pay 19% tax on image rights compared with 45% on wages.

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.

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