Dublin Roundtable: Navigating noise and lower-for-longer growth
By , 18 Feb 16
The precipitous falls seen on stock markets in recent weeks have opened up opportunities for brave managers of long term money, while at the same time ratcheting up the noise and negative sentiment in the round.
Brian Weber, executive director at Quilter Cheviot, believes the outlook has become a binary one, telling Portfolio Adviser, that the firm is currently only really accepting client assets that can be put at risk.
“We sit down with the clients, find out what proportion they can put at risk and tell them to leave the balance on deposit. There is no return at the moment. You are going to cap rates of growth by doing that, but I think in the interest of the client long-term it is probably the best thing to do.”
However, he added, for Irish investors, there is a stark advantage to investing directly in equities as opposed to through funds at the moment.
“The capital gains tax rate is 33% versus 41% in funds. You can offset your gains against your losses so your effective rate is slightly lower than 33%, funds are taxed at 41% so really clients shouldn’t be investing in funds, it’s a waste of time, unless they are looking for some esoteric ideas where you can’t get direct exposure.”
Tags: Investment Strategy
