This will be my third and final post for now on recession and related matters. A return to more positive postings is promised for October!
I wrote previously of economists I had listened to at conferences telling of a slow exit from recession, and of other more recent surveys showing that there may not be 'green shoots' after all - But with the release on 23 July of the initial figures for second quarter economic growth, it could be said with some certainty that the UK has seen three consecutive quarters of growth, bringing an end to the most recent recession.
The average length of recession in the UK has been three consecutive quarters, with a fall in economic output of just over 2%. To put the 'Great Recession' (as we shall now refer to it, Q2 2008 to Q3 2009) in context, it was the longest and deepest on record with a term of six consecutive quarters of contraction and an aggregate fall in GDP of 6.2%. It beats by some margin the notorious 1980’s recession which saw a fall of 4.7% from peak to trough.
In fact, the preliminary estimate for growth for the April to June period was surprisingly strong. The Office for National Statistics estimates that real gross domestic product increased by 1.1% compared with that of three months earlier and 1.6% on a year-on-year basis. Of course, initial estimates are often revised – they are based on only around 40% of the final surveyed data – but this surprising level of momentum in a recovery is undoubted good news. It is also encouraging that the data suggests that the economic gains were broad-based, with growth in services (1.7% year-on-year), production (1.5%) and construction (5.8%).
The outlook is not one that supports sustained strong momentum, however (remember previous postings speaking of a gradual exit from recession, not boom, nor bounce). There are fears that the coalition Government’s commitment to cutting the deficit so swiftly – combining tax rises with austere spending cuts and welfare reforms – is likely to weigh on domestic demand, particularly if the labour market remains weak. Much depends on the performance of Britain’s exporters.
Britain presently imports more goods and services than it exports (the deficit is in the region of £7–£8 billion) meaning that our trade position tends to act as a brake on economic expansion as measured by GDP. An improved export position would encourage higher growth rates.
Currently, over half of British exports are bound for the euro-zone. Looking ahead, it seems likely that continental demand will be dampened as increasingly austere measures are introduced (see previous blog post on what we might expect in the upcoming HM Treasury economic review) to combat deteriorating government balance sheets - witness the reported imminent collapse of Ireland...?
On the continent the Greek Government’s debt crisis has not yet run its course and problems persist in Portugal, Spain and Ireland. These problems have taken their toll on the value of the euro.
Sterling gained 10% vis-a-vis the euro in the first seven months of 2010. Unfortunately that has the effect of increasing the relative cost of British goods for continental purchasers.
Indeed, June and July brought some renewed strength for sterling relative to the US dollar, the Canadian dollar and the Japanese yen.
More comment on the above, as usual in our Monthly Market Commentary (for clients of Green Financial with larger sums invested) but as promised at outset, cheerier topics to come in the blog in October :-)
Thursday 30 September 2010
40% of adults in Britain worry over their personal debt
In a recent post I discussed my concern that even if we come out of recession as a nation, my fear was that behind all this was a massive level of personal debt from the days of cheap lending before the credit crunch hit (remember all those credit card applications that were posted through your letterbox on a daily basis?).
It seems I'm, not alone in worrying...
Four in ten adults in Britain (almost 19 million people) are worried about their debt, according to research by R3, the insolvency trade body.
The findings show that Londoners are the most likely to be worried, with almost half (49%) saying that they are concerned about their current level of debt.
Londoners are followed closely by those living in the North East and North West where forty-four percent of residents are worried about their debts.
For those who worry about their debt, credit cards caused the most concern (51%). Thirty-two percent of those worried about their debts were most concerned by their overdraft, with nineteen percent worried about bank loans and mortgages payments respectively.
Those living in the East of England were the least worried with just under a third (33%) saying that they were concerned with their overall level of debt. However, those in the region who do worry about their levels of debt were the most likely to be worried about credit card debts (63%). Those concerned about debt in Scotland and the North West follow closely behind, with fifty-nine percent saying that they worry about credit card debt. However, Londoners, who were most concerned about their debts overall were least likely to be worried about this specific form of debt (39%).
R3's President, Steven Law commented:
"It is alarming, but not surprising that so many people are worried about their debt. The research shows how debt has become a fact of adult life - starting with a student loan and eventually graduating to a mortgage, credit cards and loans. However, seeing debt as a way of life can lead to years of worries about financial stability. People who feel that they are struggling with personal debt should seek professional advice on managing their household budget early."
Also a concern was that the trend I discussed of housing availability and pricing slowly picking up has reversed in the last month and quarter with a raft of different, more negative figures, from a number of different organisations. More on this another blogpost.
It seems I'm, not alone in worrying...
Four in ten adults in Britain (almost 19 million people) are worried about their debt, according to research by R3, the insolvency trade body.
The findings show that Londoners are the most likely to be worried, with almost half (49%) saying that they are concerned about their current level of debt.
Londoners are followed closely by those living in the North East and North West where forty-four percent of residents are worried about their debts.
For those who worry about their debt, credit cards caused the most concern (51%). Thirty-two percent of those worried about their debts were most concerned by their overdraft, with nineteen percent worried about bank loans and mortgages payments respectively.
Those living in the East of England were the least worried with just under a third (33%) saying that they were concerned with their overall level of debt. However, those in the region who do worry about their levels of debt were the most likely to be worried about credit card debts (63%). Those concerned about debt in Scotland and the North West follow closely behind, with fifty-nine percent saying that they worry about credit card debt. However, Londoners, who were most concerned about their debts overall were least likely to be worried about this specific form of debt (39%).
R3's President, Steven Law commented:
"It is alarming, but not surprising that so many people are worried about their debt. The research shows how debt has become a fact of adult life - starting with a student loan and eventually graduating to a mortgage, credit cards and loans. However, seeing debt as a way of life can lead to years of worries about financial stability. People who feel that they are struggling with personal debt should seek professional advice on managing their household budget early."
Also a concern was that the trend I discussed of housing availability and pricing slowly picking up has reversed in the last month and quarter with a raft of different, more negative figures, from a number of different organisations. More on this another blogpost.
Friday 24 September 2010
Wednesday 22 September 2010
HM Treasury Spending Review and The Recession
It is just under a month now until the HM Treasury 2010 Spending Review.
The Spending Review is a Treasury-led process to allocate resources across all government departments, according to the Government's priorities. Spending Reviews set firm and fixed spending budgets over several years for each department. It is then up to departments to decide how best to manage and distribute this spending within their areas of responsibility.
In addition to setting departmental budgets, the 2010 Spending Review will also examine non-departmental spending that cannot be firmly fixed over a period of several years, including social security, tax credits, some elements of local authority spending and spending financed from the proceeds of the National Lottery.
Spending Reviews have been an important part of governmental planning since the late 1990s. Prior to their introduction, departmental budgets were set on a year-by-year basis which made multi-year planning more difficult. The 2010 Spending Review will cover the four years from 2011/12 to 2014/15
This year it was made more interesting as the Government launched the Spending Challenge website to give us – The Great British Public - the opportunity to shape the way government works and to help get more for less as they attempt to tackle the GIANT deficit.
The response was quite big: over 100,000 suggestions, including more than 44,000 ideas from the public.
The Spending Challenge website is now closed and the theory is that the powers that be can investigate the ideas in further detail to see which can be taken forward in time for the Spending Review on 20 October.
At the same time we have the political ‘conference season’ kicking off.
So in advance of this I thought I’d summarise a few of the key themes, comments and ideas I have heard relating to the spending review, the recession and the economy in general in recent weeks at financial conferences I have attended.
We are all aware by now that we have been in an economic recession in recent times, ever since the credit crunch.
It has been said the technical definition of a recession is typically defined as a decline in GDP for two or more consecutive quarters.
I prefer to say a recession is when even those who had no intention of buying stop paying!
The average recession in the UK (as measured above) has been 5-7 quarters. Currently we are in qtr 6 of this one.
At the moment it is popular to discuss whether we will be having a plain old ‘U’ shaped recession or the worse ‘W’ shaped double dip recession.
I met an economist so pessimistic he was predicting an ‘L’ shape!
But on a more serious note, it is always instructive to remember that someone’s expenditure is someone else’s income.
And the Government are still spending (although how much that will reduce by we will see clearly on 20 October)
The previous Government (and this is fact, not political comment) spent 155 billion (that’s a thousand million) MORE than they collected in tax in one fiscal year.
Our current Net Debt (as a % of GDP) was forecast at 75% for 2013 by Chancellor Darling in his last days. 40% is what is reckoned is a sustainable level. Anything over 40% and basically the next generation has to bail us out.
So nationally (as we are all aware) we are in trouble.
Interest rates are currently 0.5%. They hit this low in April 2009. It is the lowest in over 300 years, since records began. And we have become accustomed to it. But how soon we forget. It was actually only March 2008 when interest rates were at 5%
The Bank of England Monetary Policy Committee meet each month to set the rate. They haven’t done anything since April 09 and I don’t see them doing anything soon (what a great job, they must just spend the 2 days drinking tea and eating biscuits!)
Someone with a national average mortgage of £150,000 owing, is £4,000 a year better off now than 2.5 years ago.
So will we lift out of recession or is it, like low interest rates, here to stay?
Well, there are some positive indicators. Generally, in surveys, confidence is up across manufacturing, services and construction.
House prices and mortgage approvals are VERY slowly increasing. It is a slow improvement but it appears to be off the floor where it has been slumped in recent times.
Retailers that have spent the last year running down stock are now starting to spend to restock (remember that earlier line, someone’s expenditure is someone else’s income)
Export growth is starting.
So this points to a slow recovery – at a modest rate – which is good as we should try to avoid a bounce, or a boom.
The economy, as a whole, dropped in size by 5% in 2009. This year 1.2% growth is forecast so again, not brilliant, but better than it was. Remember we ideally need a growth rate of 2.5% for ‘business as normal’ with a generally healthy growing economy.
So far , so good. But let’s remember back to BEFORE the credit crunch and recession. Back to the days when you couldn’t open your front door when you returned home due to the giant pile of offers from loan companies and credit card companies pushing cheap credit.
This is where I think we still have pain to come. At the time it was popular in the financial press to talk of the Personal Debt issue in Britain. The consumer debt total was reckoned to be £1.5 TRILLION.
To put this in perspective the total UK economy is only £1.4 trillion.
So we have a vast ‘debt overhang’ to deal with as a nation. Why mention this in a piece about Govt spending? Because whilst the focus is on Govt spending (or what they won’t be spending) to get the economy going, it is worth remembering that in 9 out of the 11 years before the recession 2/3 of all spending was consumers. This is equivalent to 2% of the 2.5% growth we saw as a nation in those years.
The AVERAGE debt in the country represents 19 months pay.
The AVERAGE is 160% debt to earnings ratio.
(that said, do remember average is meaningless in this context. You could argue someone with their head in an oven and their feet in a freezer is, on AVERAGE, comfortable!)
Consider this – if you are one of the people with no debt, or at least less debt than equates to 19 months pay, what of those with above average debt?. There are some big personal debt problems stored up out there and when the cheap credit ends (ie loan deals or credit cards taken out in 2007) there will be issues.
What will these people do? Currently consumers are not borrowing - and/or banks aren’t lending – depending on your viewpoint.
The cost of food, energy and utilities is on the up.
And the debt overhang, for many people, is still there in the background.
So discretionary expenditure, the nice things in life, will be under pressure.
There are short term sticking plasters around (“buy a big new flat screen TV now before VAT increases”) but these are just sticking plasters, not cures.
Remembering back to the election, and again thinking of the upcoming spending review, a big issue has been public sector spending.
But some people (probably conveniently in the case of politicians!) forget that the issue is not really how much debt you have, more, what does it cost.
As a consumer, it could actually be worse to have a small mortgage when interest rates are high (remember 15%+ in the 90’s) than a big mortgage when rates are low.
This principle applies to Governments too. The John Major Govt had higher interest rates than now with lower public spending but actually the overall cost as a % of the GDP was higher.
We had ‘QE’ (or printing money) to the tune of £200 billion but we are still debating whether companies and individuals are not borrowing or if it is the banks not lending.
So we really need to hear what is announced in October to see what will really happen. However, even if the Govt hit all their targets when we get to 2015 there will still be a VERY big debt.
Of course some cynics say that if they make it sound worse than it is now, they can take the credit when it gets better sooner!
Interest rates look like they will stay low for a time yet, perhaps edging up (or is it doubling!) to 1% early next year and maybe getting to 2% by late 2011.
But as interest rates are still less than inflation it remains a stimulus to activity rather than saving.
As before, not great, but better than a year ago.
So when do I think the recession will end, whatever happens in the spending review?
I say with absolute conviction…around half past ten.
The Spending Review is a Treasury-led process to allocate resources across all government departments, according to the Government's priorities. Spending Reviews set firm and fixed spending budgets over several years for each department. It is then up to departments to decide how best to manage and distribute this spending within their areas of responsibility.
In addition to setting departmental budgets, the 2010 Spending Review will also examine non-departmental spending that cannot be firmly fixed over a period of several years, including social security, tax credits, some elements of local authority spending and spending financed from the proceeds of the National Lottery.
Spending Reviews have been an important part of governmental planning since the late 1990s. Prior to their introduction, departmental budgets were set on a year-by-year basis which made multi-year planning more difficult. The 2010 Spending Review will cover the four years from 2011/12 to 2014/15
This year it was made more interesting as the Government launched the Spending Challenge website to give us – The Great British Public - the opportunity to shape the way government works and to help get more for less as they attempt to tackle the GIANT deficit.
The response was quite big: over 100,000 suggestions, including more than 44,000 ideas from the public.
The Spending Challenge website is now closed and the theory is that the powers that be can investigate the ideas in further detail to see which can be taken forward in time for the Spending Review on 20 October.
At the same time we have the political ‘conference season’ kicking off.
So in advance of this I thought I’d summarise a few of the key themes, comments and ideas I have heard relating to the spending review, the recession and the economy in general in recent weeks at financial conferences I have attended.
We are all aware by now that we have been in an economic recession in recent times, ever since the credit crunch.
It has been said the technical definition of a recession is typically defined as a decline in GDP for two or more consecutive quarters.
I prefer to say a recession is when even those who had no intention of buying stop paying!
The average recession in the UK (as measured above) has been 5-7 quarters. Currently we are in qtr 6 of this one.
At the moment it is popular to discuss whether we will be having a plain old ‘U’ shaped recession or the worse ‘W’ shaped double dip recession.
I met an economist so pessimistic he was predicting an ‘L’ shape!
But on a more serious note, it is always instructive to remember that someone’s expenditure is someone else’s income.
And the Government are still spending (although how much that will reduce by we will see clearly on 20 October)
The previous Government (and this is fact, not political comment) spent 155 billion (that’s a thousand million) MORE than they collected in tax in one fiscal year.
Our current Net Debt (as a % of GDP) was forecast at 75% for 2013 by Chancellor Darling in his last days. 40% is what is reckoned is a sustainable level. Anything over 40% and basically the next generation has to bail us out.
So nationally (as we are all aware) we are in trouble.
Interest rates are currently 0.5%. They hit this low in April 2009. It is the lowest in over 300 years, since records began. And we have become accustomed to it. But how soon we forget. It was actually only March 2008 when interest rates were at 5%
The Bank of England Monetary Policy Committee meet each month to set the rate. They haven’t done anything since April 09 and I don’t see them doing anything soon (what a great job, they must just spend the 2 days drinking tea and eating biscuits!)
Someone with a national average mortgage of £150,000 owing, is £4,000 a year better off now than 2.5 years ago.
So will we lift out of recession or is it, like low interest rates, here to stay?
Well, there are some positive indicators. Generally, in surveys, confidence is up across manufacturing, services and construction.
House prices and mortgage approvals are VERY slowly increasing. It is a slow improvement but it appears to be off the floor where it has been slumped in recent times.
Retailers that have spent the last year running down stock are now starting to spend to restock (remember that earlier line, someone’s expenditure is someone else’s income)
Export growth is starting.
So this points to a slow recovery – at a modest rate – which is good as we should try to avoid a bounce, or a boom.
The economy, as a whole, dropped in size by 5% in 2009. This year 1.2% growth is forecast so again, not brilliant, but better than it was. Remember we ideally need a growth rate of 2.5% for ‘business as normal’ with a generally healthy growing economy.
So far , so good. But let’s remember back to BEFORE the credit crunch and recession. Back to the days when you couldn’t open your front door when you returned home due to the giant pile of offers from loan companies and credit card companies pushing cheap credit.
This is where I think we still have pain to come. At the time it was popular in the financial press to talk of the Personal Debt issue in Britain. The consumer debt total was reckoned to be £1.5 TRILLION.
To put this in perspective the total UK economy is only £1.4 trillion.
So we have a vast ‘debt overhang’ to deal with as a nation. Why mention this in a piece about Govt spending? Because whilst the focus is on Govt spending (or what they won’t be spending) to get the economy going, it is worth remembering that in 9 out of the 11 years before the recession 2/3 of all spending was consumers. This is equivalent to 2% of the 2.5% growth we saw as a nation in those years.
The AVERAGE debt in the country represents 19 months pay.
The AVERAGE is 160% debt to earnings ratio.
(that said, do remember average is meaningless in this context. You could argue someone with their head in an oven and their feet in a freezer is, on AVERAGE, comfortable!)
Consider this – if you are one of the people with no debt, or at least less debt than equates to 19 months pay, what of those with above average debt?. There are some big personal debt problems stored up out there and when the cheap credit ends (ie loan deals or credit cards taken out in 2007) there will be issues.
What will these people do? Currently consumers are not borrowing - and/or banks aren’t lending – depending on your viewpoint.
The cost of food, energy and utilities is on the up.
And the debt overhang, for many people, is still there in the background.
So discretionary expenditure, the nice things in life, will be under pressure.
There are short term sticking plasters around (“buy a big new flat screen TV now before VAT increases”) but these are just sticking plasters, not cures.
Remembering back to the election, and again thinking of the upcoming spending review, a big issue has been public sector spending.
But some people (probably conveniently in the case of politicians!) forget that the issue is not really how much debt you have, more, what does it cost.
As a consumer, it could actually be worse to have a small mortgage when interest rates are high (remember 15%+ in the 90’s) than a big mortgage when rates are low.
This principle applies to Governments too. The John Major Govt had higher interest rates than now with lower public spending but actually the overall cost as a % of the GDP was higher.
We had ‘QE’ (or printing money) to the tune of £200 billion but we are still debating whether companies and individuals are not borrowing or if it is the banks not lending.
So we really need to hear what is announced in October to see what will really happen. However, even if the Govt hit all their targets when we get to 2015 there will still be a VERY big debt.
Of course some cynics say that if they make it sound worse than it is now, they can take the credit when it gets better sooner!
Interest rates look like they will stay low for a time yet, perhaps edging up (or is it doubling!) to 1% early next year and maybe getting to 2% by late 2011.
But as interest rates are still less than inflation it remains a stimulus to activity rather than saving.
As before, not great, but better than a year ago.
So when do I think the recession will end, whatever happens in the spending review?
I say with absolute conviction…around half past ten.
Monday 20 September 2010
Rowing With Style
A few pictures from the charity rowing evening www.rhnrowhard.org.uk I took part in.
The evening was Row Hard for Neuro-Disability in aid of the Royal Hospital for Neuro-Disability (both ‘RHN’, geddit) located near the Green Financial office in Putney. The RHN is a fantastic national charity and deserving of support. Do look at their website www.rhn.org.uk/ for more details on what they do and who they do it for.
The RHN is the chosen charity for Green Financial this year. Every time I complete any new work for a client I make a donation – see www.justgiving.com/greenfinancial for more details.
In addition to this I like to find other ways to support the charity. One such way was taking part in the event held on HMS Belfast.
Above are a few pictures. Top shows me giving a few tips(!) to Team GB (Note - If they win gold in London2012 remember this picture, if they don't, forget it!). Then Team Rowing with Style. The old bell on HMS Belfast, the historic ship the event took place on and finally the machines on deck.
Sadly no action shots as we were too busy competing but there are many great pics on the RHN facebook page.
Our team was called ‘Rowing with Style’, named after ‘Fitness with Style’, the name of the personal training gym owned by fellow team member Fred Ferge. If you live in Wandsworth and want to get fit/keep fit/lose weight or muscle up then I highly recommend www.fredfitnesswithstyle.co.uk. Fred was the secret weapon of ‘Rowing with Style’ being the only sports professional amongst us!
The team also contained fellow business professionals Simon and Martyn. Martyn rushed back from client meetings in Birmingham to attend and Simon claimed to have rowed to HMS Belfast from just down the Thames. Huge thanks to both.
Thanks also to our chief cheerleader (or cox as I believe the technical term is!) from Team GB Rowing.
The evening was tremendous fun and whilst it was the taking part and not the winning that was important, form dictates I should place on record we came 11th out of 25 teams.
It is only right I place this in financial terms, so "above average 2nd quartile". We intend to compete again next year but please remember that past performance is no guide to future returns and that finishing times can go down as well as up.
Wednesday 15 September 2010
Continuous Professional Development
left to right top
Tax Planning Opportunities, Retirement Income Planning,
left to right 2nd row: Global Absolute Return Fund, Trustee Investment Planning, ETFs/ETCs/ETNs
If there is one thing you can be sure of with financial services rules and regulations and taxation legislation, it is that there will be change. Almost constant change. Whether driven by taxation changes, politically driven or otherwise, economic changes, product innovation or any number of other variables, change is constant.
So as a financial adviser, whilst I retain a formal study program to continue to pass ever higher qualifications, Continuous Professional Development (CPD) is a large part of my role. I typically undertake around 400+ hours a year to ensure I am able to obtain the latest knowledge to provide clients with the best possible service.
Much of the study consists of reading professional papers, journals and periodicals but a number of times each year I undertake other forms of study, such as the masterclasses on offer at the Citywire event in Brighton I attended this month.
In the first picture above I am discussing cutting edge (entirely legal and approved) tax planning techniques with David Fagan (over 25 years experience in life assuarnce industry) and Rick Warner (Tax and Estate Planning Manager) of Legal and General. These seminars provide access for me to the very best brains in the business on subjects of great relevance to my clients, thus ensuring I can deliver the solutions I promise.
The quality of the information, knowledge and most importantly wisdom on offer surpasses greatly anything the 'man in the street' can usually access via the general financial press or general literature - it is the type of data usually only found in more academic papers or less obvious texts - thus giving my clients, via me, a shortcut to the best possible information and advice available today.
In the second picture with his laptop open at his presentation is Mike Morrison, Head of Pesions Development at Axa Wealth. Previously a financial adviser himself, he has over 20 years experience in the field and regularly engages with Government and professional bodies on pensios development. His was a fascinating lecture on why 'Retirement Planning is not just Pension Planning' - a topic that any client of mine will know is dear to my heart.
The 3rd and 4th pictures show me first with Tam McVie, Investment Director at Standard Life and investment specialist for the Global Absolute Returns Fund, then with Steven Sands, Head of Platform at Standard Life. We were discussing the use of this fund as a suitable tool for trustees, especially considering the duty of care requirements stretching right back to the Trustee Act 2000 and more recently the Legal Services Act 2007 (more on this in a later blog)
Finally, picturewise, one of the usual conference 'goodie bags' on offer. As I try to be 'Green by name, Green by nature' I only accepted one and put all my other documents in it. I didn't accept any of the more frivolous freebies (snoopy toy, mints, flashlights etc), but of course did take the opportunity to stock up on branded pens and post-it notes for the office :-) Build a better life by stealing office supplies, as Dilbert says!
Lyxor, provider of the pictured bag gave a fascinating presentation on ETFs, ETNs and ETCs - A type of investment familiar to Green Financial clients in our passive model portfolios and a more and more frequently used fund type these days. But like anything, it pays to be aware of the detail - another reason why attending seminars such as this and being able to talk with individuals such as Alexandre Houpert, the Head of Listed Products for Northern Europe is so valuable. Alexandre is one of the people who construct the funds and associated products so chatting to him - and looking in the whites of his eyes - as readers of yesterday's blog will know, is an opportunity not to be missed.
There were many other sessions over the days, too numerous to detail here but covering all manner of subjects from the use of guaranteed plans from the likes of Richard 'Shep' Sheppard of MetLife with their product (again, familiar to many clients of Green financial) that can protect investments from market drops through to a fascinating talk on The Psychology of Portfolio Construction from acknowledged expert Graham Bentley, now of Skandia and previously at Virgin Money.
So why blog about this?
It came from a recent client conversation where I realised that much of what goes on 'backstage' at Green financial is never seen by clients 'frontstage'. The 400+ hours of CPD a year, the ongoing gaining of higher qualifications, the days spent away from work (and family) extending knowledge, all in search of that special something that will enhance my service to clients.
So I hope you found it interesting to see a little of what goes on behind the scenes.
Tuesday 14 September 2010
Looking into the whites of their eyes
Meet The Managers
Looking into the whites of their eyes
At a recent Citywire event I took the opportunity to meet with and listen to a number of fund managers. This is part of the investment process we call 'Looking into the whites of their eyes'. We do this because for all the research available it is still really important sometimes to just sit down, face to face, and speak with someone. To hear their story, ask the questions directly, watch their responses and obtain the answers.
Clockwise, above, I'm meeting:
Richard Penny, Legal & General UK Alpha Trust - winner of Money Observer Best UK Growth Fund for the last 2 years
Guy Glover, F&C UK Property Fund - a new fund launch unencumbered by legacy issues
Ralph Brook-Fox, Ignis UK focus fund - a 'best ideas' approach
Also in my sights:
Ben Pakenham, Henderson Fixed Income
James Gledhill, Henderson High Yield Monthly Income
George Tsinonis, M&G Dynamic Allocation, Cautious Multi Asset and Managed Funds
Richard Sennitt, Schroders, Asian Income Fund
Thomas See, Scroders Head of Structured Fund Management
Tam McVie, Standard Life, Investment Director, Global Absolute Return Strategies Fund
Guy Morrell, HSBC, head of multimanager
Alexandre Houpert, Lyxor Soc Gen, Head of Listed Products (ETFs, ETCs, ETNs)
Monday 6 September 2010
1959 - MIDLAND BANK - How to open an account
My grandmother had a clear out and gave me this. It has some brilliant stuff in it. Have a read...
Readers by now will have noted that "A banking account is not something for rich people only"
"Even the smallest requirement receives prompt and courteous attention" - how times have changed. Computer says no...
"Banking hours are normally from 10am to 3pm"
If you want to open an account: "Go in and tell one of the men [Note:men only!] you wish to open an account. You will then be introduced to the Manager"
"Every cheque must bear a twopenny Inland Revenue stamp, and the bank has to collect this duty from you by charging your account with the cost of the stamps when you obtain each new book"
"People who possess special skills of their own readily appreciate the expert efficiency of the service The Midland Bank provides"
My grandmother had a clear out and gave me this. It has some brilliant stuff in it. Have a read...
Readers by now will have noted that "A banking account is not something for rich people only"
"Even the smallest requirement receives prompt and courteous attention" - how times have changed. Computer says no...
"Banking hours are normally from 10am to 3pm"
If you want to open an account: "Go in and tell one of the men [Note:men only!] you wish to open an account. You will then be introduced to the Manager"
"Every cheque must bear a twopenny Inland Revenue stamp, and the bank has to collect this duty from you by charging your account with the cost of the stamps when you obtain each new book"
"People who possess special skills of their own readily appreciate the expert efficiency of the service The Midland Bank provides"
I wish I had the 'explanatory leaflets' mentioned on the last page that detail how The Midland Bank is "For young men considering their careers" & "For girls seeking a worthwhile job"!
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