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Diversity has the ‘X-Factor’

The reason behind this is that fund performance varies, depending on what is affecting the underlying assets. These include how the economy is doing, market sentiment and sectors it chooses or avoids.

The manager’s style, too, will come in and out of favour. Some managers like to pick out-of-favour companies and wait for the business to be turned around; others like stocks which pay a steady dividend for a reliable income stream.  So, if you pick a fund that has been a top performer for the past five years, it may be due a change in fortune.

When I am advising clients, I tend to look at what to recommend by using a different method than pure past performance.  Clearly, I am not going to pick poor performers thinking that they will be due an upturn.  The starting point must be an appreciation that, to get the best benefit, the investment is for the long term.  We are not looking for quick fixes but to take advantage of market fluctuations.  Therefore, picking funds is based on what I believe in for the long term.

What I am also looking for is diversity, using the investment profile that the client completes allows me to choose funds suitable for them in different sectors, regions and assets.  This allows for a more temperate approach as there will be checks and balances within the portfolio as funds rise and fall.  The adage that, it’s not timing the market, but time in the market, to get good returns still holds true. If you haven’t reviewed your investments for some time I am happy to arrange to see you to discuss what, if any, changes I would recommend.

This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

Other News

LEADER IN THE FINANCIAL SECTOR

Manuela RobinsonManuela Robinson – Joint Country Manager, was interviewed by the magazine “Revista Pontos de Vista” for their 21st November edition.

Blacktower Financial Management (International) Ltd (BFMI) is made up of experienced consultants who offer an excellent service in wealth management and tax planning. With more than 30 years’ experience in the market and with offices on both sides of the Atlantic, whose differentiating aspects have marked the company’s path, making it a leader in the financial sector?

All aspects are summarized in the ability to respond, with pragmatism, rationality and professionalism to the demands of the sector and customers’ expectations. BFMI is a leader in the financial sector due to the whole team being interconnected and ponders on the challenges and risks faced when operating in a complex context, within an international dimension. BFMI services differentiate itself from the others, by striving to guarantee investor confidence and not considering separately the national and international dimension; on the contrary, there are two sides to the same coin in a globalized world – take for instance the effects that the North American elections have on the global markets.

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Data Reveals Expat Cost of Living Impact

How is the outcome of the Brexit process likely to affect your purchasing power as a British citizen living as an expat in Europe?

This question should have priority in your checklist of expat wealth management concerns right now as British expat retirees in Europe are facing the reality of trying to cope with steeper rises in living costs than what is being experienced by their UK-based equivalents.

The revelation comes in the form of a data release from international technology-led services and payments specialist Equiniti. The firm found that British retirees who live in Europe have seen currency shifts contributing to a 14% rise in their cost of living – nearly double the UK’s domestic inflation rate of 7%.*

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