Five things your clients will call you about this week

You may face a more inquisitive client this week after the Observer took a closer look at what asset management reports say...and what they really mean.

1 Lost (or hidden) in translation

You know how to read between the lines in reports from asset managers, but do your clients? Maybe they'll have a better chance of doing so now, after Sunday's Observer dissected a typical letter from an investment house. Here's an example...

Dear investor, At ABC Asset Management we are pleased to report that we have once again outperformed our benchmark, with the fund earning top quartile returns. (Translation: Over the past three months we have lost 15% of your money, but our rivals did even worse than us. Hopefully you won't notice the performance fee we're going to pinch from your fund.)

2 Land tax for ‘just a few acres'

The Liberal Democrats are planning a new land tax on the wealthiest landowners, in addition to their mansion tax, according to the Sunday Times (requires subscription).

The tax, part of a wider Lib Dem plan to crack down on those benefiting from unearned income, would also likely hit middle class landowners with just a few acres.

3 Look out now - Osborne's after you

Fresh from negotiating a new deal with secretive Swiss banks, George Osborne has warned top earners who attempt to avoid tax that the government "will find you and your money".

Writing in the Observer, the Chancellor reasserted his determination to ensure the tax system is fair and says the clampdown announced on rich people sheltering their wealth in Switzerland is "just the start".

4 To Buy or Not To Buy?

Clients undecided on buying a new home may have been swayed by new research from Halifax suggesting mortgages are at their most affordable since 1999.

According to the lender, typical mortgage payments for a new borrower - both first-time buyers and home movers - at the historic average loan to value ratio stood at 28% in the second quarter of 2011, the lowest level since 1999 and down by almost half from a peak of 48% of average disposable earnings in late 2007.

5 A fixed rate mortgage for a decade?

Chelsea Building Society may have begun marketing its ten-year fixed mortgage last week, but it was almost unanimously covered - including here in the Independent - by the national newspapers at the weekend.

Under the deal, homeowners can lock in to a 10-year fix for under 4% for the first time.