Categories: Economics / Markets
Topics: BRIC| ISA| Income Drawdown
Nationals round-up: All the Sunday papers had last-minute ISA advice while pension drawdown, investment trusts and Brics were all in the spotlight.
It's the last opportunity to open an ISA before the end of the current tax year, so most papers had last minute tips and advice for consumers. The Observer had a roundup of all the places consumers can go to get their savings sorted out, but, with so many options to choose from, clients may be making last-minute calls to their IFAs.
With employers no longer able to force staff to retire at 65, the Independent on Sunday reports on how pension income drawdown may become a more popular option, both to maximise income and get more flexibility. The new rules may also lead to more people having another look at their workplace schemes as they may not necessarily be flexible enough.
Three of the world's major developing economies have been grouped together as the BRICs (Brazil, India, China) in recent years. However, in a Q&A with the Sunday Telegraph, Neptune Investment Management's Robin Geffen described the concept as "deeply flawed". He said it is important IFAs and discretionary managers distinguish between the nations, because "you don't want to have the same weighting in China - the world's second largest economy - as in Latin America".
Sitting tight on investments was the message of the day from Terry Smith, described by the Sunday Telegraph as an "investment maverick". The Fundsmith founder told the paper investors are becoming too short-termist and he also attacked the fund management industry for churning stocks in their funds for the sake of it. Instead, he touted the benefits of sitting and holding and also said investors would be better off buying tracker funds.
Some savers may start showing more interest in certain investment trusts after a glowing piece in the Mail on Sunday. It explained how 16 trusts have a 20-year record of consistently increasing the annual dividend they pay to investors, with seven doing so for more than 40 years. They are: City of London (44 years of successive dividend growth); Alliance; Bankers; Caledonia Investments (all 43); Albany (41); and F&C Global Smaller Companies; and Foreign & Colonial (both 40).
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