Running rings round risk

Article Abstract:

Perceptions of risk can vary, and private clients may accept currency risk but not the risk of investing in stocks, preferring instead to use cash deposits. Private client fund managers need to assess their clients' attitudes to risk and how this affects investment strategies. Long term investments in stock are less risky, with a 15-year investment almost guaranteed to provide positive returns. Investments for ten or five years could prove negative. Selecting the right markets may be more important than choosing particular stocks.

Economic aspects, Risk management

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Capital punishment

Article Abstract:

Private client services have been affected by changes to the way that capital gains tax is calculated in the United Kingdom. There is concern that investors could be tempted to retain investments due to tax benefits rather than financial benefits. The new system is also complex, though private client managers are not likely to increase their charges. The new measures will not affect assets in Personal Equity Plans (Peps). Trusts could be affected, including those set up to help the aged and disabled.

Public Finance Activities, Capital Gains Taxes, Taxation, Capital gains tax

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Style and substance

Article Abstract:

UK asset managers vary in terms of style and the investment philosophies of some individuals may work well for a short time. Wealth preservation and quantitative analysis are likely to become more popular as asset management styles. Private clients tend to be best served by regional companies, though many clients prefer to use asset managers from London, England. Risk levels that investors and asset managers are happy to take are important, as is the way risks are perceived.

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