G’day mates
, says David Cowell from Myddleton Croft Investment Managers. Fresh from the dowey dens o’ Yarra, I bring you the first offering of the new tax year on my triumphant return from the antipodes. Doubtless your thoughts are turning to tapping up your clients for this year’s ISA contributions. If so, you may wish to consider using ours which doesn’t have any charges other than our usual fees for management. More importantly, superior performance without extra risk. Contact julie.jones@mcim.co.uk for more info or look on the website.
On a sad note, Richie Benaud has died today. One of the most laconic cricket commentators as well as an excellent Australian captain, I will never forget his special way of saying “two for twenty two”. His comment on being asked what particular attributes a captain needed apply equally to CEOs and chairmen. He replied that being a successful captain required 90% luck and 10% skill but advised against doing without the 10%.
All-time highs for various equity indices whilst I was away. Could be time to take some off the table.
A UKIP parliamentary candidate is to be questioned over allegations he tried to influence voters by giving away sausage rolls. I hope they weren’t from the local German bakery; it would be the wurst alternative. Sorry, couldn’t resist.
Defaqto has published a survey on multi-asset investments and costings. “Our survey result showed that advisers who construct their own portfolios from single-asset active funds spend the most time on post-sale administration of their clients’ funds, at 5.5 hours per client,” the report said. At £150 per hour that’s £825, so if we assume that the adviser charges the client 1%pa for all services including reviews, compliance and queries, a profitable client has to have a portfolio in excess of £150,000. Of course there is an alternative where the adviser doesn’t spend much time at all on such matters. Call Julie Jones at Myddleton Croft to be relieved of this burden and stay well in profit.
On 9 March, War Loan was repaid at par. It was issued in 1917 to help pay for the war effort and in 1932 the coupon was cut from 5% to 3.5%; a default in all but name. Its capital value has changed greatly over the years and M&G has produced this chart:
So much for safety in gilts. The facts will probably be lost on pension consultants and the PRA.
Takeover of the year to date is Shell and BG. BG had already struggled with profit warnings prior to last summer’s steep oil price fall, meaning as of the start of the week its shares stood 20% lower over five years. The company makes up 1.5% of the FTSE All Share and 1.8% of the FTSE 100, but fewer than 10% of the 270 funds in the IA UK All Companies sector had the stock in their top ten holdings as at the end of February. Shell will account for almost 10% of the FTSE 100 if the acquisition goes through which makes Footsie trackers much more risky. Seemingly it was all done with a telephone call. It’s amazing how quickly one can make decisions with other people’s money.
Factoid from an un-named UKIP spokesperson: A government survey has shown that 91% of illegal immigrants come to Britain so that they can see their own doctor.
Have a good weekend.
David Cowell
Director
For and on behalf of Myddleton Croft Investment Managers
1 Woodside Mews
Clayton Wood Close
Leeds
LS16 6QE
Tel: 0113 274 7700
Fax: 0113 274 7711
