Five things your clients will call you about this week

Nationals round-up: Power of attorney, corporate bonds and tips for supercharging investments…

Power of attorney

IFAs with power of attorney over their clients' financial affairs may get some enquiries for reassurance following a piece in the Mail on Sunday about an RAF veteran who was "betrayed" by his financial adviser. Albert Regan was 91 and living in a care home when £90,000 was invested into property on the Atlantic island resort of Cape Verde, in a Stirling Mortimer unregualted collective investment scheme, by his long-standing financial adviser, Brian Jones. Lawyers for the family of Mr Reegan, who died in April, are claiming the investment was mis-sold.

Emerging market bonds

Low government debt as a percentage of GDP could be one of the reasons why emerging market bonds are gaining favour at the moment. That's according to a piece in the Independent on Sunday, which assessed the pros and cons of this type of investment. Sales of emerging market funds exceeded £150m in April and yields are described by the paper as "surprisingly high". Of course, political risks should always be kept in mind and high levels of inflation could be a problem.

Premium bonds

Clients who have money locked up in premium bonds may be calling up to seek advice after a damning assessment over the weekend. The Sunday Mirror described "lousy or next-to-nothing returns" and said most investors would earn more by leaving money in a savings account. However, £42bn is invested in the bonds and more than half of British people own one.

Corporate bonds

On the back of recent corporate bond issues from Lloyds Banking Group and John Lewis, the Mail on Sunday looked at ways in which investors can make money by lending to big businesses. It said the fixed rate of interest could prove attractive and, if the bond has a lifespan of more than five years, it can be held within an equity ISA or SIPP, meaning all income is paid free of tax. However, there are credit risks and investors get no Financial Services Compensation Scheme protection.

Supercharging investments

With inflation eating into investments, Scotland on Sunday looked at how people can "supercharge" their returns without committing more money. They include seeking lower charges, reviewing performance regularly and making sure investments are balanced. It also reminded readers about reinvesting their dividends and tax efficiency.