Robert Harris has over 25 years experience working for some of the major financial institutions in the City of London, including 12 years at Citibank where he was a Senior Banker. During his time at Citibank, Robert was responsible for global relationships with important financial institutions and instigated a number of landmark deals.
Robert is a founding partner of Forth Capital and has helped the company become the leading expat financial advisory company in Switzerland. He has been quoted in the Financial Times and numerous magazine articles.
For the www.knowitall.ch website, Robert invites various members of his team at Forth Capital to contribute blog articles on different financial topics that he thinks will be of interest to our readers.
By Robert Harris, Forth Capital
Nobody can time the markets consistently. It is time spent IN the market, rather than trying to time the market, that is the key to medium to long-term investment growth. If you want to be invested in equities you must be prepared to understand that a market cycle is usually five to seven years, and if you can’t be invested for that length of time, you should not be invested in equities.
For example, if you had been invested in a UK index fund from 1980-2009, you should have achieved a return of 700% on your investment. However, if you missed the best 20 days of stock market performance during that period, that return would have been reduced to just 240%.
The lesson for all investors here is that as long as you are invested in your correct risk strategy, and for the medium to long term, you should stay invested and “ride the wave”.
If we look at the events of the last 3 months, most stock market performance has been driven by statements from the Chairman of the Federal Reserve, Powell, whose statements have signalled changes in US interest rates from increases of 0.5% to reductions of 0.25%, causing markets to fall and rise depending on the statement.
Another example of when staying invested has proven to be the best route, is the performance of Forth Capital’s Next Generation funds which continue to rebound after the general market shock in the 4th quarter of 2018.
By Robert Harris, Forth Capital
Passive investing is an investment strategy that tracks an index and focuses on increasing portfolio values with limited day-to-day management of the portfolio itself. Management costs are therefore significantly reduced. Research shows that passive investment consistently beats the returns of actively managed funds.
In this short video, Emma Morgan, Portfolio Manager at Morningstar Investment Management Europe, tells us about Forth Capital’s Next Generation Passive Investment Strategies, and the associated benefits.
Here are some quotes from Emma Morgan:
“Clear advantages of this approach are its low cost nature and the transparency that comes with passive investing. While returns are uncertain, costs are not, so minimizing charges helps to build investors’ wealth in the long term”
“These portfolios cater for investors from cautious to more adventurous and they’re investing globally in money markets, bonds and equities”
Watch the video now to find out more.
For further information on Forth Capital’s Next Generation Investment Strategies contact us on +41 22 311 1441 or click here and we can call you: https://www.forthcapital.com/about-us/contact-us/
Author's bio
Robert Harris has over 25 years experience working for some of the major financial institutions in the City of London, including 12 years at Citibank where he was a Senior Banker. During his time at Citibank, Robert was responsible for global relationships with important financial institutions and instigated a number of landmark deals.
Robert is a founding partner of Forth Capital and has helped the company become the leading expat financial advisory company in Switzerland. He has been quoted in the Financial Times and numerous magazine articles.
For the www.knowitall.ch website, Robert invites various members of his team at Forth Capital to contribute blog articles on different financial topics that he thinks will be of interest to our readers.
By Robert Harris, Forth Capital
As Partner and Chairman of the Investment Committee at Forth Capital, I have been asked to give my thoughts on the recent market volatility:
It won’t have gone unnoticed that stock markets fell by over 4% at the end of January. So, what happened and what lessons should be learned? Should you be concerned about your investments and pensions?
In the short term, markets never move in a straight line and they often make big moves both up and down. The large fall in the market on Friday 2nd Feb in the US was caused ironically by better than expected performance in the US economy. The effect of President Trump’s massive fiscal stimulus (tax cuts allied to government spending) has boosted the US economy and caused wages to rise faster than expected, which in turn will fuel inflation.
The fall in the stock market is a result of expectation of rising interest rates (not actual rises!). On the 6th Feb markets rebounded as investors bought cheaper assets.
By Audrey Flynn, Forth Capital
Judith
Judith has been married to Steven for almost 15 years. She stopped working several years ago, to look after their two children, returning to work part-time at a lower level when the children started school. Five years ago, Steven had the opportunity to work in Asia for several years and Judith happily gave up her job to move there with him and the children. Then, without warning, Steven announced that he wanted a divorce which forced Judith to reassess her life and her financial situation for the future.
Like many women Judith hadn’t contributed to a pension scheme on a full-time basis for most of her adult life, as she had taken career breaks to look after her children and to support her husband in his career. She had always relied on Steven to manage the family finances with minimum discussion, and without contemplating her own pension.
The sudden break down of her marriage forced Judy to look more closely at her financial situation and realise that she had never sensibly planned for her own retirement, relying entirely on her husband for their retirement plans. She had no idea how much money she had, nor how much she would need to save to enjoy the lifestyle she hoped for when she retired - and she had no idea where to start…
By Robert Harris, Forth Capital
During last week’s budget, the UK Chancellor of the Exchequer announced changes surrounding the transfer of UK pensions to overseas schemes, which could affect anyone who has previously worked in the UK.
Effective immediately, if you are a non UK resident wishing to transfer your UK pension into a Qualifying Recognised Overseas Pension Scheme (QROPS), a transfer tax of 25% will be levied on the transfer unless at least one of five tests can be passed. These tests are:
- Both the member and the QROPS are in the same country after the transfer
- The QROPS is based in the EEA and the member is resident in another EEA country after the transfer
- The QROPS is an occupational pension scheme sponsored by the member’s employer
- The QROPS is an overseas public service pension scheme and the member is employed by one of the employers participating in the scheme
The QROPS is a pension scheme established by an international organisation to provide benefits in respect of past service and the member is employed by that international organisation.
If you have already transferred your UK pension into a QROPS you will not be affected by this change.
