by diversifying your core investments across different sectors and countries you can ensure the best return should one of your investments falter
On the sixth anniversary of the Bank of England’s implementation of the 0.5 per cent interest rate, Zurich Private Capital’s UK-based Investment Manager says savers should look to advancing economies to achieve higher returns.
Recent official figures have shown an upturn in growth and employment but Bank of England Governor Mark Carney has warned the recovery is still too weak to support a rise in interest rates from its historic low. With chancellor George Osborne cautioning that the Budget announcements outlined on March 19 will contain ‘hard truths’ about the UK’s unbalanced economy, it seems savers will have a long wait for better returns.
Matthew Welsh, Investment Manager of Zurich Private Capital (ZPC), global leader in asset management and bespoke investment programmes, said: “I predict we will see low interest rates for the foreseeable future but this is absolutely the right course to take to aid recovery in the UK. It’s vital that the UK economy is given the time and space to grow to ensure a sustained recovery. There is no ‘quick fix’ solution – an interest rate rise now would be detrimental to the situation.”
While interest rates sticking at 0.5 per cent may be good news for householders feeling the pinch from a fall in real-term incomes, savers in the UK have been hit by near invisible returns on High Street investment products for the past few years.
Welsh advised savers looking to get better returns from their capital should look further afield to emerging economies as part of their investment strategy. He said: “My advice to savers is to ensure you keep an eye on the areas where your money is being invested in. I liken it to spinning plates - by diversifying your core investments across different sectors and countries you can ensure the best return should one of your investments falter.”
Zurich Private Capital takes a consultative approach to achieve the investment goals of high net worth individuals and institutions. The company’s services include maximising return on investment via commodity related savings platforms (CRS) which can yield annual returns of up to 12 per cent pa as part of a diversified portfolio.
CRS is balanced on core stability commodities such as wheat, corn, coffee and soy. These commodities are classed by UK tax authorities as ‘wasting assets,’ they are viewed as a food product and therefore perishable. Provided you do not hold your CRS for 50 years, it is exempt from capital gains tax.
ZPC’s CRS platforms profit from the strength of the commodities market and the compound structure – the process of generating earnings on an asset’s reinvested earnings. They are based on soybean production in economy, Brazil. One of the BRIC emerging economies, Brazil is the eighth biggest economy in the world and benefits from a stable political system and currency.
Zurich Private Capital, together with its European affiliates, works with Trusts, Traders, Banks, Investment Companies and financial entities worldwide to deliver industry recognised capital investments.
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For further information contact Zurich Private Capital Group on 0207 097 1231 or email firstname.lastname@example.org
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