Germany is 'outperforming' other eurozone nations

Germany is continuing to outperform its European counterparts.

Rupert Watson, head of asset allocation of Skandia Investment Group, noted the first quarter of 2012 saw the country grow by 0.5 per cent.

Because of this, investment in the nation may be a sound move as it is dealing with the current financial situation better than most.

"The German economy continues to grow strongly, boosted by the strength of its exports to emerging economies such as China and steadily rising consumption," Mr Watson observed.

He went on to note a decade of prudence is the main reason behind the positive results emanating from the nation.

The expert stated the whole eurozone will benefit from the strong results being published by Germany, but this will not be a short-term process.

In order to help other countries along, Germany has to give peripheral economies more time to deal with any issues they are facing.

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Advisers think 80% of people are clueless about RDR

Some 80 per cent of advisers think the general public do not know what the Retail Distribution Review (RDR) actually is.

This is according to research by Defatqo, which discovered plenty of information needs to be put across before the change on January 1st 2013 to prepare investors.

However, 78 per cent of those questioned think the government and Financial Services Authority-sponsored campaigns will help to raise awareness levels

On top of this, 81 per cent of respondents would like to see educational material provided. 

Fraser Donaldson, Defaqto's insight analyst for funds, said: "The need to undergo a change in business model and service proposition, along with a fundamental change [to] the way advisers are remunerated, is … likely to have a major impact on clients."

He added it is a good idea for advisers to get in contact with their clients as soon as possible so they are aware of any alterations they can expect to see. 

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BT's positive results 'good news' for investors

Positive dividend results from BT should provide investors with plenty of confidence.

According to figures released by the telecommunications group, dividends will grow by between ten and 15 per cent in the next three years.

Sheridan Admans, investment research manager at The Share Centre, observed BT currently has a forward price-to-earnings ratio that is undemanding and so the firm has appealed for "both growth and income investors".

"The company has once again delivered on strong cost controls pushing free cash flow and adjusted earnings per share above market expectations," he added.

Mr Admans went on to note BT boasts attractive yield potential and strong cash flow generation.

It comes after the announcement from Scottish Life that it has extended its range of outsourced investment options, which will see four leading discretionary fund managers added.

As a result, investors will have a greater range of low cost and risk graded choices. 

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Skandia: IFAs most trusted third party guide

Independent financial advisers (IFAs) are the most trusted source of investment advice for high earning Britons.

Over 30 per cent of people questioned by fund manager Skandia said they have faith in the guidance offered by these third parties.

More than 25 per cent said they continue to believe in banks, while 20 per cent back accountants when it comes to getting the right advice.

Graham Bentley, Skandia UK's head of investment strategy, stated the trust placed in IFAs highlights there is a "continued desire for quality investment and financial planning advice".

He went on to note it is good to see that "high net worth and influential customers recognise and value the importance of seeking financial advice from qualified advisers" given the regulatory changes that are being introduced.

Nearly 60 per cent of respondents admitted they had most faith in their own judgement, highlighting how a lot of high earners prefer to back themselves when it comes to investments.

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IMA: Isa sales half last year’s figure

On May 4, 2012, in Uncategorized, by simondixon

IMA: Isa sales half last year's figure

A report has shown net sales of Isas reached only £2 billion in the 2011-2012 tax year, which is half the previous period's amount.

According to the Investment Management Association (IMA), net Isa sales were £553 million between March 1st and April 5th this year, which is also down from the £974 million recorded over the same timeframe 12 months ago, continuing the lower trend of Isa uptake.

However, fixed income funds are doing well, with the first quarter proving to be the best for these facilities, while sales of UK domiciled funds were at £1.4 billion in March, which is in line with the monthly average for the previous 12 months.

The best-selling Isa sector in March was £Strategic Bond, which enjoyed sales of £53 million, with Global Emerging Markets coming as first runner-up posting £35.5 million in net sales.

"In March fixed income funds continued to see the strongest inflows from retail investors, who continue not to add significantly to their overall holdings of equities," chief executive at the IMA Richard Saunders stated.

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US growth will be ’sluggish’ in 2012

On May 2, 2012, in Uncategorized, by simondixon

US growth will be 'sluggish' in 2012

The pace of growth in the US will continue to be slow throughout 2012.

Bob Doll, chief equity strategist of fundamental equities at BlackRock, noted there has been a slackening in the rate of jobs being created of late.

However, he observed continued improvements in the housing sector means confidence levels in the markets may increase.

Going forward, Mr Doll expects the tax and fiscal policies in place until the end of the year will be extended by Congress because of the current political uncertainty in the nation.

In terms of the worldwide markets, the main risk is still the European crisis, which continues to drag on amid speculation Spain could be the latest country to require a bailout at some stage.

"The risks for investors are clear. Should European policymakers take their time in addressing escalating problems, the crisis would likely worsen, which could trigger some significant disruptions in global financial markets," Mr Doll observed. 

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