May 15 2013

INVESTORS ARE increasingly being channelled into a narrow range of market leading ‘monster’ funds in the wake of tighter regulatory controls – and could be exposed to these juggernaut funds being closed to new inflows simply because they are too big, warns HFM Columbus’ investment director Rob Pemberton.

“The more rigorous regulatory environment following the Government’s Retail Distribution Review has led to an increasing use of so-called Model Portfolios by financial advisers and wealth managers, sometimes through a ‘third party’ arrangement with a discretionary fund manager or else through online asset allocation/fund selection tools,” said Pemberton.

“The direct beneficiaries of this development has been the large established ‘winners’ of the fund management world, which tick all the necessary boxes in terms of past performance screenings and ‘qualitative process’.

Pemberton adds that, while many of these funds have strong performance and are typically doing a sterling job for their investors, their very success could be shoring up real dangers in the future.

“My concern is that an increasing number of these funds will be closed to new investors to prevent them becoming too large to manage and thereby threatening returns to existing investors. You then have a serious problem – it has happened in the past and the indicators are that it is likely to happen again before too long,” said Pemberton.

“Once a Fund moves out of the shadows and onto fund selectors’ radar the inflow of new monies can be substantial.

“In addition to the retail OEIC or Unit Trust vehicles the popular managers often run segregated pension or charity funds with near identical portfolios so it is the size of the ‘strategy’ in aggregate that is important to the manager, not just the open ended retail fund.

“The First State Global Emerging Markets Leaders Fund is the most recent fund to ‘soft close’ to new investors who henceforth will need to pay a 4% initial charge if they wish to invest,” he added.

“Concerns have also been expressed about the size of some Funds in other sectors, most notably Fixed Income.

“The obvious solution for investors would be a retreat to the world of passives but there is no monopoly of wisdom in fund management and there are plenty of other, smaller funds also generating strong returns for fund buyers to select.

For investors wanting to avoid the behemoth funds which may be dragged down by their very success, the following is Pemberton’s pick of the alternatives:

Ends

General enquiries:

Rob Pemberton
Investment Director                                                               07808 329884

HFM Columbus

robert.pemberton@hfmcolumbus.com

Press enquiries:

David Andrews
Senior Consultant – Director                                     07941 255855
DAM PR Ltd

david@davidandrewsmedia.co.uk

Editor’s notes:

HFM Columbus is a joint wealth management operation utilising the expertise of IFA firms Hoyland Financial Management and Columbus. The company targets the higher net worth end of the market and offers in-depth solutions ranging from mortgages and investments to employee benefits, retirement and IHT.

Hoyland Financial Management was established in 1986 by Jeremy Hoyland to provide in-depth, independent financial advice primarily to high net worth individuals and business owners. It has dedicated departments for high net worth financial planning, including investment, pensions and tax advice, mortgages and employee benefits. The team of financial advisers is led by Jeremy Hoyland whose previous career background was in International Banking.  All advisers are professionally qualified and continue to pursue an ongoing programme of specialist technical development.  HFM maintains an in-house department dedicated to product and fund research.

Columbus, based in Tunbridge Wells, Kent, was founded in 1990. Today, directors Marcus Carlton and Charlie Walker head up a team of four other consultants each with many years of experience advising wealthy individuals and their families. Columbus has forged an enviable reputation for its tax structure work through a combination of leading edge thinking and careful due diligence. Columbus is proud to have been awarded chartered status in 2008, a reflection of their dedication to advancing the knowledge base of their consultants and support staff. Columbus maintains an in-house department dedicated to product and fund research.

May 7 2013

TIDEWAY INVESTMENT PARTNERS’ Global Navigator Fund has posted an exceptional return of 20.11 per cent for its retail (Class A) share class in the 12 months to May 2013.

The outstanding return for investors was underpinned by a consistently positive performance every month (see table below – month on month performance at a glance). Whilst according to website FE Trustnet the FTSE 100 fell 8% in May 2012, UK corporate bonds fell 1% in January 2013 and UK gilts fell 3% between August 2012 and January 2013, the Global Navigator Fund has made at least 0.5% every month since May 2012.

The fund, which is in the Absolute Return sector, and was launched on 6 September 2011, is currently ranked in 5th place, based on 12 month returns, out of a total of 192 on and offshore funds on a Sterling converted basis according to fund website FE Trustnet on 1st May 2013.

The Global Navigator Fund has also comfortably outperformed its sector: as the graphic (below) shows, under fund manager Peter Doherty, the fund’s primarily bond focused investment strategy has left the majority of its competitors at the starting post.

The fund, which has a target return of 6 – 8 % p.a. after fees, invests in bonds and currencies with a 6 – 18 month horizon and is hedged against significant capital falls.

“Whilst many equity funds have performed reasonably well overall for the last 12 months, investors had to endure sharp falls in May last year and many emerging market and resource based equity funds have made very little over the period –  our ability to select out performing bonds and hedge against market down turns has deliver consistent performance,” said Peter Doherty.

“Our “Sharpe Ratio” (a standard measure of risk adjusted returns) was 2.70 for the A Units, another compelling signal that the fund has delivered high quality returns,” said Doherty.

“To hedge the bond investments, we have also been short on equity markets providing an additional degree of protection to our investors – we are very pleased to have also delivered a 20 per cent plus return in the current market conditions. Investors want a degree of comfort in volatile markets, and our combination of careful bond selection and an effective hedging strategy has clearly paid off,” he added.

Ends

Media contact: David Andrews, director, DAM PR, 07941 255 855/

david@davidandrewsmedia.co.uk or

Charlie Rigg, consultant: charlie@davidandrewsmedia.co.uk

Editor’s notes:

About Tideway Investment Partners

James Baxter – Managing Partner

James has 24 years experience as a financial adviser and investment manager. James managed his own firm JBCM Ltd, now trading as Dart Capital, from a start up in 1989 to £150m of funds under management at the time of its sale in 2008. James has specialist qualifications in pension advice, taxation, trusts and portfolio management. He provides individual advice and is the support manager for all the firm’s portfolios.

Peter Doherty – Partner & CIO

Peter has 25 years experience in fixed income, currency and derivative structuring and sales and has held a number of senior positions at Goldman Sachs, Bear Stearns, Bank of America, Solent Capital and Markit. An Engineering graduate from Oxford University, Peter is the portfolio manager for all Tideway Managed Accounts and investment adviser to the Alceda Global Navigator Fund.

18 April 2013

Hurricane Sandy fall out triggers Eastern Seaboard price rises in US automotive underwriting rates - WhiteOak Underwritingreports on Stateside market outlook for crucial sector following post-Sandydevastation

The after-effects of Tropical Storm Sandy continue to have ramifications for the US Truck insurance market.

Lloyd’s of London based specialist underwriter WhiteOak Underwriting Agency today announced that underwriting rates in the first quarter of 2013 have shown a ‘marked up-tick’ since the same time last year, as the effects of Sandy continue to impact on the US Insurance market.

“We saw modest rate increases in the US in both 2011 and 2012, but nothing compared to the jump in pricing we are now witnessing in 2013 as a result of the continuing impact from the devastation caused by Sandy,” said WhiteOak Underwriting Agency’s Director of Underwriting, Matthew Maxwell.

“Our immediate commercial experience is that markets are now looking at how to monitor aggregation of risk but it is proving virtually impossible in the Auto arena, hence causing further uncertainty in the Auto markets,” said Maxwell.

“We are being made aware of major carriers withdrawing from the fire, theft and collision market place (FTC): we thinkthis is directly attributable to the fact that loss ratios were poor prior to Sandy and that the Sandy loss has proved a game changer,” he added.

White Oak Underwriting believes it is the only Auto agency in London collecting granular data per risk, and is well placed to substantiate rate improvements and secure capacity if the improvements continue in the market.

“Our house view is that also the Dealer Open Lot / Floorplan market in the US has come under severe pressure, due to nervousness surrounding aggregation of risk, overall lower rates and catastrophe exposure as a direct result of Sandy and hence has forced underwriters to review their exposures.

“The US Motor Truck Cargo (MTC) market remains soft, although theft is on the increase, while the Marine market continues to write Non- Marine MTC risks at unsustainable pricing levels,” added Maxwell.

“WhiteOak Underwriting is one of the few international underwriters which can respond to current US demand. Sandy caused havoc on an epic scale, and risk perceptions have clearly changed the landscape, but there remains excellent opportunities Stateside and we are well positioned to take advantage of present market conditions,” he said.

– Ends –

Enquiries:

www.whiteoakuw.com 0207 816 7155

info@whiteoakuw.com

Press enquiries:

Charlie Rigg, Consultant

David Andrews Media Ltd

charlie@davidandrewsmedia.co.uk 07793 469612/01273 737352

David Andrews, Director                                         07941 255855 / 01273 737352

David Andrews Media Ltd

david@davidandrewsmedia.co.uk

Editor’s notes:

WhiteOak is a specialist Underwriting agency focused on Worldwide Auto related products. These products include Physical Damage Insurance and Reinsurance, both on Commercial and Private Vehicles, Forestry and Logging Insurance, Motor Truck Cargo, Construction and Agricultural Equipment. White Oak also provides expert Underwriting solutions on Asset Protection and Warranty based products.

WhiteOak has beenfounded on a tradition of Lloyd’s underwriting and claims excellence. We have drawn together the best London Market skills available into a team that will deliver our objectives to provide a competitive product with high quality service levels.

WhiteOak is committed to providing a comprehensive and professional claims service which is paramount to the success of its business and has developed and installed bespoke IT and management reporting systems to ensure that the deliverance of a superior claims service is achieved.

WhiteOak has selected one of the strongest Lloyd’s Managing Agencies as its partner and with a Lloyd’s rating of A from A.M. Best, A+ (strong) from S & P and A+ (strong) fromFitch we are proud of the financial strength behind us.

WhiteOak Underwriting Agency is authorised and regulated by the UK Financial Services Authority (FSA) Reference No. 510331 and is also a fully approved Consortium at Lloyd’s of London, No. 9620.

April 10 2013

Sabien Technology Group plc (AIM: SNT), the manufacturer and supplier of M2G, a boiler energy efficiency technology, is pleased to announce it has been awarded a contract by a leading Facilities Management company, Norland Managed Services Ltd (“Norland”), to install its M2G technology at one of Norland’s own customers.

The contract value and details remain confidential but the order is for the deployment of M2G at approximately 25 sites and the contract value represents just under 10% of last year’s turnover.

Alan O’Brien, Sabien Technology Chief Executive Officer, said:

“The Norland order is a further endorsement of our M2G technology, reinforcing just how effective M2G is at reducing gas consumption and CO2 emissions. This sales order will be recognised as sales revenue during this financial year (year end 30 June 2013).”

For further information:

Media enquiries:

David Andrews

DAM PR 07941 255855/david@davidandrewsmedia.co.uk

Or Charlie Rigg, 07793 469612/charlie@davidandrewsmedia.co.uk

Sabien Technology Group plc

Alan O’Brien, CEO                            Tel: +44 (0) 20 7993 3700

Gus Orchard, CFO                            www.sabien-tech.co.uk

Westhouse Securities

Antonio Bossi                                                Tel: +44 (0) 207 601 6100

Paul Gillam                                        www.altiumcapital.com

Background:

Sabien Technology is a UK-based company which specialises in providing proven and commercially viable technology to reduce carbon emissions and energy usage for private and public organisations.

The M2G is a patented energy efficient technology designed to reduce fuel consumption in commercial boilers. M2G dynamically responds to changing load demand by measuring, identifying and removing dry cycling thus maximising efficiency under all conditions.

M2G is retro-fitted to commercial boilers regardless of age and size and fully integrates and complements existing controls, such as BMS, boiler sequencing, weather compensation and building optimisation controls.

Using intelligent software and hardware, the M2G unit improves a boiler’s efficiency by reducing energy wastage. For further information, please visit our website www.sabien-tech.co.uk.

March 26 2013

Sabien Technology (AIM:SNT), the manufacturer and supplier of M2G, boiler energy efficiency technology, is pleased to announce that the Group has today signed a non-exclusive distribution agreement with Fireye, a leading manufacturer of flame safeguard controls and burner management systems for commercial and industrial applications throughout the world based in New Hampshire, U.S., for the supply of its UL-approved M2G boiler optimisation controller.

The territories covered by the agreement include the U.S., the European Union, including Switzerland, China, Japan and South Africa.

The M2G product will feature the Fireye logo and will be promoted through Fireye’s network of distribution partners and sales teams in the territories covered by the agreement..

Fireye maintains 20 offices worldwide providing a quick and responsive service to its client base worldwide.

Alan O’Brien, CEO of Sabien Technology said: “We are extremely pleased to add a group the calibre of Fireye to our overseas distributor network.

“The agreement creates an excellent opportunity for Sabien to access major overseas markets. Fireye is a respected market leader in combustion controls with strong technical and distribution capabilities. M2G is a natural fit with their existing portfolio, providing flame safeguard controls and burner management systems for commercial and industrial applications throughout the world.

John Devine, vice president, sales and marketing, combustion controls group, Fireye, said: “We are pleased to have the opportunity to add the M2G product to our line of combustion efficiency products and look forward to a successful introduction of the product in a number of key markets.”

Background:

Sabien Technology is a UK-based company which specialises in providing proven and commercially viable technology to reduce carbon emissions and energy usage for private and public organisations.

The M2G is a patented energy efficient technology designed to reduce fuel consumption in commercial boilers. M2G dynamically responds to changing load demand by measuring, identifying and removing dry cycling thus maximising efficiency under all conditions.

M2G is retro-fitted to commercial boilers regardless of age and size and fully integrates and complements existing controls, such as BMS, boiler sequencing, weather compensation and building optimisation controls.

Using intelligent software and hardware, the M2G unit improves a boiler’s efficiency by reducing energy wastage. For further information, please visit our website www.sabien-tech.co.uk.

- Ends -

For further information:

Media enquiries: David Andrews

DAM PR 07941 255855/david@davidandrewsmedia.co.uk

Sabien Technology Group plc

Alan O’Brien, CEO                                               Tel: +44 (0) 207 993 3700

Gus Orchard Finance Director                              www.sabien-tech.co.uk

About Sabien Technology

Founded in March 2004 by Alan O’Brien, UK-based Sabien Technology specialises in providing proven and commercially viable technology to reduce carbon emissions and energy usage for private and public organisations. Sabien Technology Group Plc floated on AIM in 2006.

The M2G is a patented energy efficient technology designed to reduce fuel consumption in commercial boilers. M2G dynamically responds to changing load demand by measuring, identifying and removing dry cycling thus maximising efficiency under all conditions.

M2G can be retro-fitted and fully integrates and complements existing controls, such as BMS, boiler sequencing, weather compensation and building optimisation controls. Using intelligent software and hardware, the M2G unit improves a boiler’s efficiency by reducing energy wastage. For further information, please visit our website www.sabien-tech.co.uk.

19 March 2013

Press release

Tuesday 19 March 2013

London:

Status: News

Outstanding 2012 performance puts Global Navigator Fund  near the top of alternative UCITS funds according to  the 2013 Preqin Global Hedge Fund Report

UCITS regulatory structure increasingly attractive to institutional and pension fund investors

Capital preservation, smoothed returns  and high income  makes the Global Navigator a perfect vehicle for conservative pension fund investors

An influential report on the best performing Alternative UCITS funds has ranked Tideway Investment Partners’ flagship Global Navigator Fund 6^th out of 550 funds worldwide.

The report, by global investment research house Preqin, (see attached) reveals how the increasingly popular use of the European-regulated UCITS structure as a wrapper for alternative investment strategies funds has been able to offer investors increased liquidity, greater transparency on the underlying investments of the fund and regulatory oversight.

Tideway’s award winning Global Navigator Fund’s 22.26% return in 2012 easily outperformed the UCITS Hedge Funds sector average, which includes all alternative UCITS strategies, of 6.24 per cent according to Preqin.

“UCITS compliance ensures portfolio diversification, limits the amount of risk we can put into the portfolio and ensures liquidity. UK wealth managers, family offices and private investors are increasingly shunning non UCITS alternative funds to get these assurances,” said Tideway’s James Baxter.

Preqin’s report confirms that the relative volatility of UCITS fund returns has been lower than non-UCITS funds: the report assessed volatility at 4.7% over the last three years and 6.1% over the last five years for UCITs funds compared to fund volatility at 6.0% and 8.7% over the same time periods respectively for non UCITS funds.

These additional constraints have often come at quite a high price in terms of performance and many hedge fund managers trying to fit strategies that have delivered good returns in unconstrained non UCITs funds have not been able to deliver good returns in the UCITS environment.

The Preqin report concludes:

“Although outsized returns may not be expected by most investors in UCITS funds capital preservation is a minimum requirement …”  before suggesting in respect of the 2012 performance tables highlighting the Global Navigator’s performance   “….there are managers in the sector (UCITS Sector) offering investors attractive returns in addition to transparency and liquidity.”

“In 2012 we have clearly demonstrated that the UCITS badge does not need to come at the expense of performance,” says Tideway’s Baxter.

Since launching in September 2011 The Global Navigator Fund has delivered a return net of fees of 24.4%, which equates to an annualised return of approximately 15.8% p.a. (Data according to Financial Express as of 5th March 2013).

“We are not expecting this level of return in 2013, but we remain confident of meeting our target of 6-8% p.a. net of fees in all conditions. Tideway’s Global Navigator aims to be a safe pair of hands to navigate through what could be choppy waters for traditional long only bond funds,” added Baxter.

Ends

Attached: The 2013 Preqin Global Hedge Fund Report UCITS funds extract with permission from Preqin.

Media contact: David Andrews, director, DAM PR, 07941 255 855/

david@davidandrewsmedia.co.uk

Editor’s notes:

About Tideway Investment Partners

Tideway is a specialist global macro and fixed income fund manager.

James Baxter – Managing Partner

James has 24 years experience as a financial adviser and investment manager. James managed his own firm JBCM Ltd, now trading as Dart Capital, from a start up in 1989 to £150m of funds under management at the time of its sale in 2008. James has specialist qualifications in pension advice, taxation, trusts and portfolio management. He provides individual advice and is the support manager for all the firm’s portfolios.

Peter Doherty – Partner & CIO

Peter has 25 years experience in fixed income, currency and derivative structuring and sales and has held a number of senior positions at Goldman Sachs, Bear Stearns, Bank of America, Solent Capital and Markit. An Engineering graduate from Oxford University, Peter is the portfolio manager for all Tideway Managed Accounts and investment adviser to the Alceda Global Navigator Fund.

More information on Tideway is available at www.tidewayinvestment.co.uk

      M&G Optimal Income

      Jupiter Strategic Bond

      SWIP Absolute Return Bond

      JP Morgan Strategic Bond

      Schroder Income Maximiser

      Fidelity Enhanced Income

      Lazard Global Equity Income

      Newton Real Return

      “Global Equity Funds continue to provide a higher income payment than most UK Equity Income Funds as well as providing some currency diversification, which has added considerably to returns over the last few months.”

FEARS that the lengthy bull-run in the bond markets are coming to an end may well result in a loss of capital for investors, warns wealth manager HFM Columbus’ investment director Rob Pemberton.

Pemberton suggests investors focus on more defensive bond funds with a remit to preserve capital and consequently carrying a very short ‘portfolio ‘duration.’

“Investors have quite rightly seen bond funds as producing healthy yields with minimal threat to capital for many years  now but this could well be about to change,” said Pemberton,

“There is a very real threat that bond markets are coming to the end of a profitable bull run, Any lift in yields will result in a loss of capital, especially in longer dated bonds.

“Spreads have compressed in corporate and high yield bonds to the extent that these also now offer far less value than a year ago,” said Pemberton.

“Equity Income Funds have produced strong returns but the real kicker has been the strength of corporate bond and high yield fixed income funds, which have produced equity like returns.

“Nothing lasts for ever and now is a good time to spring-clean the portfolio – with the expectation that income and capital returns from fixed income funds will be much lower going forward. The challenge for income investors is to try and maintain existing levels of income without taking on considerable extra risk,” adds Pemberton

RECOMMENDED FUNDS:

“We favour M&G Optimal Income, and Jupiter Strategic Bond, both of which have short durations and experienced managers flexible enough to cope with potentially challenging market conditions.

“Two more unusual recommendations are SWIP Absolute Return Bond Fund and JP Morgan Strategic Bond,” said Pemberton.

“These Funds are managed with a defensive ‘Cash+’ mindset, again well suited to difficult times.

“A useful income kicker to offset the shortfall in income from bond funds is to choose equity funds which use a ‘covered call’ derivatives structure, whereby the fund can boost its yield to around 7% by forgoing some potential future capital growth in exchange for a higher level of income.

“Two such funds are Schroder Income Maximiser and Fidelity Enhanced Income.

“The latter is an interesting fund in that it is very similar in portfolio composition and hence returns over the last few years to the Invesco Perpetual Income and High Income Funds.

“As such, investors can invest in a similar portfolio of stocks but in a much smaller and potentially more flexible fund with a higher income pay-out,” added Pemberton.

“Global Equity Funds continue to provide a higher income payment than most UK Equity Income Funds as well as providing some currency diversification, which has added considerably to returns over the last few months.

“My recommendations include Lazard Global Equity Income and Newton Global Higher Income, both of which yield around 4%.

“And a fund which is rarely included in income portfolios but has proved very adept at preserving capital in difficult market conditions is the conservatively managed multi-asset fund Newton Real Return.

“Historially this fund has yielded over 3%, and is proving very popular with investors focused on income returns from their portfolio.”

Ends

Two billion pounds. It’s hard to assimilate those kinds of numbers. Close up to the magisterial works that defined the pop art era, I found myself increasingly distracted by the sheer vastness of the wealth that now dominates the premiere division of the world’s art market, and how remote it has become from the lives and values of all save the occasional oligarch or oil rich Arab dynasties.

I thought of Rothko, teetering at the top of his ladder back in the late 40s/early 1950s, clasping a palette and brush in a battered demob suit, despairing as to whether anyone would ever buy the masterpieces he toiled over, day in and day out.

He did not live to enjoy the success, committing suicide long before he became arguably the world’s most expensive painter. Had he been alive today, he too would perhaps have wondered at the craftiness of the dealer and collector networks which maintain these stratospherically high prices.

It is all commerce, I thought, great art, reduced ultimately to commerce. But its value to us is the aesthetic, and if we can separate the aesthetic from the glitz and glamour of the high art market, then perhaps the value is universal. Perhaps.

Trevor, my deeply moody cat, dislikes estate agents.

I have suspected it in the past, but now know this to be a fact, as every time an agent comes to my house in Brighton – I am selling up – he has a right go at them. It is quite frankly embarrassing. Painful too. Trevor is half Maine Coon, and in common with the hunter-killer characteristics of the breed has a large mouth packed with razor sharp teeth.

True, very few people come to my house these days, and by way of mitigation, Trevor is not used to being disturbed from his epic, 16 hour sleeps.  But once the agents have successfully managed to get past Trevor, they do provide some useful feedback about the state of the market. It’s a pretty good bell weather for the wider economy generally.

When the housing market starts to move, it is invariably a sign of positive movement in the economy. After a perishingly cold winter, when most people were wondering how to keep warm, let alone venture out to see properties, the market is, according to local intelligence, really starting to gather pace. Which is a good thing, as a buoyant housing market means more sales on the High Street – carpets, furniture etc – and more work for the various businesses involved in the process.

Brighton is a relatively affluent part of the country, and property prices down here compare favourably to some parts of London and the affluent Home Counties.

But there are increasing signs of creeping poverty and deprivation, reflected by the fact that there are no fewer than 48 agencies in Brighton alone which have been set up to deal with the homeless and people teetering on the abyss of being without a roof over their heads.

Many of these, according to recent reports, are single mothers no longer able to afford the rent, and increasing numbers of young professionals who have fallen on hard times.

Rents are astronomically high, and while the so called ‘baby boomer’ generation continues to grumble about dwindling annuities and poor returns from bank deposits, they can at least be secure in the knowledge that their properties, bought many years back, are worth small fortunes. Many these days of course cannot contemplate getting onto the housing ladder until reaching their 40s, if at all.

That we are a nation of have and have nots is also reflected in the massive disparities in real salaries within the UK. For many, the difference between what they can earn on or around the minimum wage, and simply being on benefits and having rent and council tax covered can at most be very marginal.

It’s an imperfect system, but looking at how some of our European cousins deal with similar issues, I think we are making the best of a difficult scenario in a low growth economy.

I quite like George Orwell’s take on work and those who could not find work and whose daily lives were spent in grinding poverty. As this extract from Down and Out in Paris in London – written the best part of 80 years ago, demonstrates, it is pretty much a case of things change, but they don’t change. Or plus ca change, as the French might have it:

“In practice nobody cares if work is useful or useless, productive or parasitic; the sole thing demanded is that it shall be profitable. In all the modern talk about energy, efficiency, social service and the rest of it, what meaning is there except “Get money, get it legally, and get a lot of it”? Money has become the grand test of virtue. By this test beggars fail, and for this they are despised.”

BEGGARS is an emotive word, and as we can see from the example above was synonymous with an age long gone. But the beggars, as we know, have not gone. They remain, shadowy figures, there sometimes I feel to remind us of how different our lives might have been, had things not worked out. It’s a thin divide, I always think. Maybe an abusive childhood, struggles with depression, alcohol. Whatever. But when I walk through the determinedly busy streets of London, rocking slightly in the turbulent wake of the self-important as they stride purposely to the next meeting, to clinch the next deal, to make their exclusive pact with Manon, I think back to a time now seemingly gone, when money and commerce did not play such an all embracing part in our daily lives. A time before the exponential rise of the likes of Wonga, when one was judged not by the value of one’s home or the size of one’s deposit account, but by less material attributes. I rather miss it.

AM I alone in being increasingly baffled by job titles? Or non-job titles? I note the very smart new hotel opening in London’s Aldwych, called ME, seemingly without being detained by irony, employs a woman whose job title is that of ‘Aura Manager’. On further enquiry, it transpires that the hotel’s Aura Manager is in charge of all things relating to the ‘spirit of the place.’ Could this, I wondered, be anything to do with room service? How the phones and Internet connections work? I assured the AM is above all responsible for ‘ambience.’ Ok.

I am reminded of Helen Schlegel, the idealistic heroine of EM Forster’s Howards End, who on meeting the gloomy, doomed working class aspirant Leonard Bast advised him that he must ‘scrub at his aura’ if he were to be a rounded, interesting individual . I like the idea of scrubbing at one’s aura. So too, clearly, do the brains behind the multi million pound ME Hotel. Prices start at £408 a night. Without breakfast. I’d want a lot of scrubbing for that.

THE BOOMING market in so-called ‘payday loans’ has triggered a tsunami of distress calls to National Debtline, by all accounts. I gather the helpline received 20,000 calls in 2012, double the volume of the preceding year. Some of those calling were trying to juggle up to 80 different loans. Quite extraordinary. One of the more recent of these lenders to enter this lucrative fray trades as Cash Lady. The company has retained the service of former pop star Kerry Kantona. This strikes me as a rather bizarre choice, given Ms Kantona’s very high profile bankruptcy. Cash Lady presumably knows it is onto a good thing. Its advertised representative APR is 2,670 per cent, which I reckon is roughly 2,658.5 per cent above the Bank of England base rate. It’s a harrowingly high rate, and I fear the National Debtline’s phone will be ringing off the hook if the desperate borrow money at these usurious rates.

Press release

 Continuing returns reflect bond selection, currency positions and interest rate hedging strategy

    Gilt funds down over 6 months, corporate bond funds returns tailing off  

  Global Navigator Fund (GNF) UP over one, three, six and twelve months

THE ABLILITY to hedge against rising gilt yields puts Tideway Investment Partners’ Global Navigator Fund in pole position.

The fund manager’s flagship fund has comfortably outperformed the UK gilt, corporate bond and strategic corporate bond fund sectors in the last 6 months against a backdrop of rising gilt yields which could continue and will provide significant head winds for long only bond funds.

As the table (below) reveals, the fund is a clear market leader over the past 12 months, considerably out-performing the major UK bond fund sectors.

Source FE Trustnet 5th March 2013

“Most market commentators are coming around to the view that gilt yields could well continue to rise – perhaps not much further in 2013 but certainly in late 2014, and beyond, the great bull run in gilts could well be over,” said Tideway’s James Baxter.

“While traditional bond fund sectors are going to have difficult months as gilts and lower risk bonds fall in value, our UCITS structure allows us to hedge the Global Navigator against rising gilt yields and right now those hedges are not too expensive.”

“Investors may be nervous about the outlook for the UK Gilt, long-only Corporate Bond fund sectors and also of so-called Strategic Bond Funds – but they may well not wish to migrate into equity markets and put capital at risk, especially as equity markets are pushing new highs. There is always the risk of a big pull back in equities, and despite the current bullishness that risk has not gone away,” said Baxter.

Since launching in September 2011 The Global Navigator Fund has delivered a return net of fees of 24.4%, which equates to an annualised return of approximately 15.8% p.a. (Data according to Financial Express as of 5th March 2013).

“We are not expecting this level of return in 2013, but we remain confident of meeting our target of 6-8% p.a. net of fees in all conditions. Tideway’s Global Navigator aims to be a safe pair of hands to navigate through what could be choppy waters for bond funds,” added Baxter.

Ends

Press release

HIGH earners in the £150,000 plus a year bracket have less than two months before the end of the tax year to take advantage of the 50 per cent top tax rate and make contributions to their pensions at a net cost of just 50p per £1 invested.

James Baxter, of Tideway Investment Partners (‘Tideway’ – see Note 1) said:

“In the 80’s and 90’s it was common for high earners to regularly invest the maximum amount into pension plans every year, but pensions have become deeply unpopular in recent years because of a combination of poor investment returns and high annuity costs and so many are simply disregarding this most attractive investment opportunity.”

Many people still believe that the capital value of a pension fund is doomed to be lost with the purchase of an annuity, however the mandatory purchase of an annuity disappeared in April 2011 and since then pension investors can withdraw income from their invested fund until death, pass the fund on whole to a surviving spouse to continue withdrawals and then pass the residual fund to the next generation net of tax.

“Lower investment returns are a fact of life in the 21^st Century,” said Baxter.

“We all have to get used to lower returns from investments whether you make them via a pension account, ISA or you invest directly. In fact lower returns make the tax relief on contributions to pensions even more valuable.  The current 50% tax relief available which immediately doubles your net investment is equivalent to 12 years investing at a 6% p.a. compound return and it comes automatically as you make the contribution.”

“The Inland Revenue allows you to invest unused pensions contributions for up to three years in the past plus the current year and with the annual contribution allowance still at £50,000 per year someone earning over £350,000 in the current tax year who has not made contributions in the last four years could invest £200,000 as a one off attracting £100,000 of tax relief,” added Baxter.

Tideway uses SIPPs to give pension investors access to their flagship Global Navigator Fund and to individual securities with the emphasis on fixed income.

Since launching in September 2011 the Global Navigator Fund, an absolute return UCITs fund, has delivered 23.4% net of fees which equates to an annualised return of approximately 16.6% p.a. (Data according to Financial Express as of 7^th February 2013). 

“2012 was an exceptional year for fixed income investing,” said Baxter.

“We were perfectly positioned and effectively got 3 years return in 1 as bond prices rose strongly in the second half of the year. We are not going to see this return in 2013 but we are still confident in meeting our target. When you are getting such big tax breaks the emphasis for someone making a large contribution like this is to protect capital and earn as certain a return as possible ahead of inflation after fees.” 

The Global Navigator Fund targets a return of at least 6% per year and fund manager Peter Doherty believes this can be delivered in 2013 from a combination of higher yielding bonds, exposure to other currencies and hedges against rising interest rates without the need to risk capital in equity markets.

Ends

Note (1)

Tideway is a specialist global macro and fixed income investment analyst and fund manager. Its award winning Global Navigator fund has returned 23.4% since launch in September 2011 (Source FETrustnet February 2013).

Note (2)

According to website FE Trustnet the Global Navigator is currently the number one performing offshore absolute return fund in sterling terms, over one year and six months, out of 115 funds. Its performance ranks second over one year out of a further 77 onshore Absolute Return funds.