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Signia wins plate at GAM charity football tournament 2017 at Chelsea’s Stamford Bridge, raising money for the charity Wheels of Wellbeing.



MR

We are delighted to announce that Michael Rosenthal has won the 2017 Wealth Advisor, Best Wealth Manager – Alternative Investments.

Voting is based on a peer review system that includes institutional and high net worth investors as well as managers and other industry professionals who elect the ‘best in class’.

Both Signia Wealth’s performance track record and the experience of Michael and his team set us apart from our peers – see our article in Wealth Advisor Special Report:

Wealth Advisor Award 2017





– 17 May 2017

– Jessica Fellowes talks to Philip Hindes MBE

 

On 25 May, double Olympic gold medallist Philip Hindes MBE will be at the City Cycling Championships, a new event in the City Championships calendar.  Raising money for Maggie’s, Future for Heroes and 21st Century Legacy, keen cyclists from the Square Mile will be taking part in competitions at the Lee Valley Velopark, as well as receiving coaching from Hindes himself.

Sponsored by Signai Wealth, chief executive Carnegie Smyth says they were eager to get involved as a new and fun way to engage their clients.  “We have thrown down the gauntlet and challenged them to come and spend the afternoon at the Olympic Velodrome,” says Smyth.  “They will be coached by Hindes and then taken to the track for a competitive event with an awards ceremony to finish.  They’re a successful bunch and the City Championshps provides the competitive element that catches their eye.”

Hindes is looking forward to it, too: “As all the guests are very successful entrepreneurs who have excelled in business, they don’t like finishing second.  I am expecting some fireworks.”

Greg Malone, head of wealth management at Signia Wealth, says: “Cycling is great because its a low impact sport that is easily accessible and can be very sociable too.  The success of Hindes and the rest of the GB team both in London 2012 and last year in Brazil has had a massive effect.  We are glad to be supporting the charities sponsored by City A.M. and City Championships.





Big Question: How are you positioned as we head into a global inflationary environment (part III)?

 

– Robert Lee, executive director, Signia Wealth

– 27 March 2017

 

Medium-term pessimism

 

While we acknowledge we are firmly in the midst of a reflationary environment, we are somewhat less sanguine on the medium-term outlook for inflation relative to market expectations, as positive base effects from energy prices begin to drop out of year-on-year headline indices and core inflation indicators globally remain subdued.

To reflect this, we have maintained a relatively balanced position across global rate and credit markets accompanied by several moderate inflation hedges.

Firstly, we remain invested in global sovereign bond markets (albeit with an underweight allocation), have hedged part of our US duration exposure via payer swap options and put options on long-dated US treasury bonds.

Secondly, in the index-linked markets we have small positions in shorter dated US treasury inflation-protected securities and UK inflation-linked gilts.

Finally, over the past year we have built positions in higher yielding assets with attractive levels of real income in US sub-investment grade bonds and emerging market debt – our most recent addition has been to the short dated emerging market high yield sector.

 

To review the full article, click the following link: http://www.investmentweek.co.uk/investment-week/discussion/3007241/big-question-how-are-you-positioned-as-we-head-into-a-global-inflationary-environment-part-iii/page/7





Is it madness to invest in cash? Spectator Money investigates.

– Philippe Pollet, Executive Director

– 11 April 2017

 

Is it madness to invest in cash?  The simple answer is yes, but as with anything to do with investing, it is far more complex than that.

We are living in a world of low returns, less liquidity, tighter regulation, increased competition and globalisation.  When you include the advances in technology, it is clear to see why there has been a reduction in the competitive advantage for many firms, resulting in lower returns for shareholders.

It is therefore understandable that investors worry and wonder about what to do.  Some choose not to do anything and stay invested in cash.  Unfortunately, it has been a difficult time for savers to enjoy any real returns on their savings.  Those waiting for a better, more predictable future to begin investing again have seen the value of capital erode and have suffered significant opportunity costs.

The prospects for fixed income aren’t much better.  In fact, the outlook does not look attractive over the medium to long-term.

At the other end of the scale, equity markets have boomed, reaching historic highs.  This poses its own risk.  How sustainable is this rally, and will it come to an end soon?

With the investment landscape full of potential pitfalls across all asset classes, it is essential to develop a strong framework to think rationally and independently.  Here are four key considerations when thinking about where and how to invest:

 

Think about the risk of losing money first, rather than investment returns

Protecting capital is a key step to building wealth over time.  To understand, control and mitigate the risk of losing capital, you should get to grips with the underlying characteristics of your investments and assess the quality of the assets in your portfolio.

 

Make sure that you get value for money

Even professionals can find it hard to assess the value of an asset; it is the only tangible factor you can use to make sensible decisions.  Understanding the value of an asset relative to its price is an insightful tool to manage your investment decisions independently of market uncertainties.

 

Whatever you do, don’t pay attention to market ‘noise’

Many investors are influenced by things they cannot control, or fully understand, such as the outcome of the next election, a possible increase in the bank rate, exchange rate forecasts or even the oil price.  Listening to this ‘noise’ is disruptive and leads to making a simplistic and often wrong decision.

 

Investing is easier with a long-term view

The compounding of returns at a reasonable rate plays an important role in investment success as wealth creation accelerates over time.  With a longer-term perspective, you will also be under less pressure to worry about short-term volatility in share prices and you will pay l;ess attention to market noise.

There is no getting away from it, cash can be part of an investment strategy and can be considered as part of a portfolio.  But it is utter madness to have th majority of your wealth in cash.  Over recent years it has failed to keep up wit hthe cost of living and this completely contradicts most people’s investment philosophy.

Investing certainties are less obvious than they were, but there are plenty of opportunities.  Whether you are a DIY investor or prefer to leave the investing to an investment manager, you should always apply a mind-set of discipline, cautiousness and patience, keeping the four considerations at the front of your mind.

 

Philippe Pollet is executive director at Signia Wealth.

 

To read the official article, click the following link: https://blogs.spectator.co.uk/2017/04/cash-invest-equity-returns/

 





Digital client battle: six wealth managers reveal their tactics, by Steve Plowman

– 22 March 2017

 

The tech savvy client

 

It has been well documented that wealth managers need to address outdated technology systems if they are to compete in the modern world.

Platforms like Twitter, LinkedIn and Facebook have significantly changed the way in which investors, especially the next generation, engage.

We ask six wealth managers what they are doing to win clients and keep them happy in this new age.

 

Christopher Meurice, associate director,  Signia Wealth Limited, London

 

Relevance, speed and quality are three important facets to bear in mind when attracting new clients today.  Prospective clients lead busy lives and revel in the details of their current projects, which are often not investment related, so creating a broader, more social interaction with them is key.

The digital age has made it easier to communicate directly with clients, allowing us to broaden interactions beyond meetings and phone calls.  Thought-provoking research, interesting articles and fun events can all be brought to the client’s attention more efficiently and keep the wealth manager relevant to their needs.

The second, and perhaps most obvious result of the digital age is the increasing speed of information, which needs to be managed effectively.  Prospective clients can respond well to the added value of quick and concise reporting of the very latest trends.  However, while the speed of data is rising, its reliability is increasingly being questioned, so a new way to attract clients is to provide value in fact-checking and filtering the cacophony of noise in the digital age.

 

Link to article: http://www3.citywire.co.uk/wealth-manager/news/digital-client-battle-six-wealth-managers-reveal-their-tactics/a996470?ref=wealth-manager-most-popular-list#i=6

 





Could Trumponomics revive bond market?

 

– 6 December 2016

– Robert Lee, Executive Director

 

In each conversation held about president-elect Donald Trump there is an overriding theme of unpredictability.  In stark contrast, following a surprisingly conciliatory victory speech on November 9, with the aim of sowing fertile fields for policymaking in congress, the market’s reaction has been far more decisive.

The increasing use of portmanteau words and phrases to timestamp a significant market event or scenario is amusing.  A few of the more popular terms used to describe this latest development include: bond yields have thrown a ‘Trump tantrum’, rising sharply to price in a ‘Trumpflation environment’ induced by extreme open-ended ‘Trumponomic policies’.

‘Trumponomics’ represents an ideological shift – similar to Ronald Reagan’s move to the political right in the early 1980s – with policies designed to stimulate traditional domestic manufacturing and economic activity.  it involves large corporate tax cuts, higher fiscal spending on infrastructure, rising import tariffs and tighter immigration policies; all of which suggest rising inflationary pressures over the medium term in a US economy that is arguably already operating at close to maximum employment and full potential.

Whether delivered predominately via Reagan-style, supply-side economics of Keynesian fiscal stimulus, one thing is clear: rising reflationary expectations accompanied by a stronger outlook for domestic growth is likely to result in a steeper upward path for the fed funds rate and a steeper yield curve.

Bond investors will thus demand higher inflation compensation when allocating funds and making investment decisions.  Also, a persistently large and unfunded fiscal deficit could push bond yields up further by necessitating a higher risk premium across the yield curve.

Could Mr Trump’s anti-establishment victory be the start of a great normalisation process for US yields that has been threatening bond investors for decades?

Whether this interpretation of future Trump policies persists depends on what he says and does in the weeks and months ahead.  If his focus is on pro-growth domestic policies, both breakeven yields (inflation expectations) and term premiums (risk premiums) are likely to continue to rise, albeit at a slower pace.  If the focus is instead on trade barriers and other populist issues such as building a wall, then concerns for the outlook of the US economy are likely to prevail, halting or even partially reversing this recent move.  However, the underlying trend was already in place as both breakeven yields and term premiums were already pointing up before the shock election result for reasons unrelated to Trumponomics.  Therefore yields are unlikely to return to much lower levels from here no matter what Mr Trump says or does, unless the economic outlook deteriorates significantly.

For expansionary fiscal policy to work in a world of heavy debt you need a major force on your side – a central bank willing or forced to buy your debt.

What the Federal Reserve will look like under a Republican administration is also a question that cannot be ignored.  The Republicans and Mr Trump have been very keen to clip the Fed’s wings and rein in its independence, and with Janet Yellen’s current four-year term as chair ending in February 2018 this is a real possibility.  With a new chairperson and closer ties to government, another major reverberation from this election result is that it could trigger a marked change in the global policy order away from pure monetary towards fiscal policy, or a potent mix of both.

If the US were to adopt the latter, both real and financial assets would benefit.  Corporate yields would compress over Treasuries as earnings outlooks improve and an accommodative central bank keeps a lid on volatility.  Under this scenario it is hard to imagine even longer-term inflation levels remaining pinned down under secular stagnation and deteriorating demographic clouds.

Looking beyond inauguration day on January 20 2017, the biggest risk for markets over the next four years will be the execution of Trumponomics.

President Obama’s two terms have seen a shift from an economy on the brink of destruction to one that was, until now, viewed as fully recovered and approaching the maturity phase of its cycle.  The past eight years have seen a US economy growing at an anaemic real rate of 1.3 per cent, and still only 2 per cent if you strip out 2009.

Bond markets are forward looking and usually more accurate than human forecasts, so it can only be hoped that this recent rerating of interest rates is a vote of confidence by the markets for Trumponomics.