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  • Paraplanners -Dont Leave Home Without One

    What Low Yields are Really Telling Us

    Osbornes Tradable Annuities

    1 = $1 AGAIN?

    PARITY LIKE ITS 1999

    MARCH 2015 ISSUE 38

    For today s discerning financial and investment professional

    Cover.indd 1 19/03/2015 14:35

  • C O N T E N T S

    CONTR I BU TORS

    Brian Tora an Associate with investment managers JM Finn & Co.

    Lee Werrell a senior compliance consultant and industry adviser.

    Richard Harvey a distinguished independent PR and media consultant.

    Nick Sudbury known for his columns in many leading financial magazines.

    Neil Martin has been covering the global financial markets for over 20 years.

    6 News All the big stories that affect what we say, do and think

    14Parity and the Euro

    Its been a long time for the undervalued greenback, says Michael Wilson

    19 UK Equity Income FundsNick Sudbury says the current popularity of UK plc is entirely rational

    25Paraplanners

    And why you need one. Sara Arthur, MD at the Parahub, explains

    29 Its All About the Timing Pensions expert Steve Bee takes some lessons from Tom and Jerry

    33Landscape Artist

    Neil Martin talks to Mike Parsons, of JP Morgan Asset Management, about the joys of the open road

    36 Low Yields, Clear Hints Theres a lot you can tell from the current state of risk aversion, says M&Gs Caitlin Hughes

    38Indexing Error

    Are you sure you know whats in that index youre tracking, asks Brian Tora?

    41 Rethinking the Adviser Model Neil Martin talks to John Spiers, the head of crossover adviser EQ

    Editorial advisory board: Richard Butler, Michael Holder, Ian McIver and Mark Pullinger

    03/1

    5

    Editor: Michael Wilsoneditor@ifamagazine.com

    Art Director: Tony Merlinitony.merlini@thewowfactory.co.uk

    Publishing Director: Alex Sullivanalex.sullivan@ifamagazine.com

    THE FRONTLINE: What goes around, comes around. If you wait long enough, that is. So what happens now?

    WHEN BRIAN RETIRED AS SALES DIRECTOR HE NEVER EXPECTED TO GO BACK.

    Your clients risk going back to work in retirement unless you make sure theyve got enough to cover the basics. Things like food, utility bills and running a car.

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    For more details call 0845 108 0443 or visit partnership.co.uk

    *Source: Partnership data 2014, Compared to a standard annuity and depends upon individual circumstances. Telephone calls may be recorded for training and monitoring purposes. Local call rates will apply. Partnership is a trading style of the Partnership group of Companies, which includes; Partnership Life Assurance Company Limited (registered in England and Wales No. 05465261). Partnership Life Assurance Company Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The registered office is 5th Floor, 110 Bishopsgate, London, EC2N 4AY.

    For authorised financial advisers only not for retail clients

    PART0068_Golf_Ad_210x297_FAW_AW.indd 1 14/10/2014 16:05Cover.indd 2 19/03/2015 14:35

  • C O N T E N T S

    IFAmagazine.com

    March 2015

    3

    44 Plain Talking Defaqtos Gill Cardy is back!

    46Still the Big Country

    Our panel of senior analysts tells us that America is far from being structurally overvalued

    55 Compliance Doctor PS 15/4 is important but its been cobbled together at high speed, says Lee Werrell

    65FCA Publications and IFA Calendar

    In the news, in print and in court. Our monthly listing of whats new in FCA-land

    65Thinkers: Thomas MalthusThe world is not enough, he said. Was he right?

    65The Other Side

    Lifes a gamble, says Richard Harvey. But has the government rigged the odds?

    IFA Magazine is a trademark of IFA Magazine Publications Limited. No

    part of this publication may be reproduced or stored in any printed or

    electronic retrieval system without prior permission. All material has been

    carefully checked for accuracy, but no responsibility can be accepted

    for inaccuracies. Wherever appropriate, independent research and

    where necessary legal advice should be sought before acting on

    any information contained in this publication.

    IFA Magazine is published by IFA Magazine Publications Ltd, The Old Wheelwrights, Ham, Berkeley, Gloucestershire GL13 9QH Tel: +44 (0) 1179 089686 2015. All rights reserved

    IFA Magazine is for professional advisers only. Full subscription details and eligibility criteria are available at: www.ifamagazine.com

    Contents.indd 3 19/03/2015 14:21

  • Contact us: 0800 41 41 81 fundsnetwork.co.uk/pension

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    Job No: 49694-2 Publication: IFA Magazine Size: 297x210 Ins Date: 01.03.15 Proof no: 1 Tel: 020 7291 4700Ed's Welcome.indd 4 19/03/2015 14:23

  • Look on the Bright Side

    I suppose its probably the sunny Fisher grin and the annoyingly perma-bull approach to life that grates slightly on a poor jealous Englishman stuck in Wiltshire on a grey day in March. But the other weekend Mr Fisher came up with something that made me properly sit up and take notice. In fact, Im still trying to work out now whether hes onto something eternally profound, or just a long run of historical coincidences? You decide.

    We are getting our venerable English knickers in a proper twist, Mr Fisher said (I paraphrase him slightly), about the dire financial prospects that are likely to arise from the forthcoming election. It currently seems next to impossible that any of the major parties can hope to form a government without having to sacrifice its bold autonomy to some sort of a messy coalition that will stop it from doing anything decisive.

    Lessons from History

    And that will be just terrible for stocks. Wont it? Actually,

    The point, says Fisher, is precisely that a badly hamstrung coalition cant do much damage through being clumsy. It cant pitch its economy headlong into a bold new ideology. Id personally add that it cant get away with starving the economy into recovery, as George Osborne has tried to do.

    8nifieG, DctiYe JoYernments Dre liNelier to Go thinJs stocNs hDte, says Fisher. 6Xch Ds chDnJe SroSert\ riJhts, reGrDZ reJXlDtions DnG reGistriEXte resoXrces DnG cDSitDl... /DZhDSS\ 3DrliDments creDte Zinners DnG losers JDlore, GriYinJ leJislDtiYe risN DYersion DnG hXrtinJ stocNs.

    I wish Id said that, Oscar. But is he right? Well find out soon enough.

    Mike Wilson, Editor

    Its not every day that I

    acknowledge a profound debt

    of gratitude to the inimitable

    Ken Fisher, the chief executive

    of Fisher Investments, who writes

    periodically in the Financial Times

    about all things transatlantic

    says Mr Fisher, no it wont. The markets only thinN that they hate an indecisive government with no scope for bold innovation. In practice, they absolutely love it. And history provides an endless sequence of incredibly profitable stock market runs that have happened during periods of political gridlock.

    There was the infamous Lib/Lab pact of 1977-79, which saw a 60% resurgence in the Footsie. There was the awful second Clinton term in the late 1990s, when a powerless Democrat President presided not just over a Republican Congress, but also over one of historys longest bull markets. Theres Germanys toothless grand coalition, which is currently turning in a fantastic Dax performance. There were all those bickering, incompetent European administrations in the 1980s, all of which managed to outperform the UK even though we had Margaret Thatcher running the show.

    Bright Side

    The point, says Fisher, is

    of Fisher Investments, who writes

    Financial Times

    says Mr Fisher, no it wont. The that they

    hate an indecisive government with no scope for bold innovation.

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