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Pension rules changes – only two months to go ACT NOW!

This April the minimum age at which you can take benefits from your pension arrangements increases from 50 to 55.

With only two months to go, anyone wishing to use their pension to retire fully or partially before 55 must act now as any benefits not taken will fall in to the new ruling.

Even if you are not retiring, you may wish to access your 25% tax free lump sum, allowing the remainder of the pension invested.

Doctors pension deadline

Doctors face pension decision as Superannuation choice deadline looms.

To begin with there is a huge variety of differences within the 1995 and 2008 pension schemes; two examples being retirement ages, lump sum and accrual rates. It is clear that the option is not as simple or straightforward for each individual as originally thought. So how does a GP make the right choice, solely with data from the NHS and without taking into account their own personal circumstances, other pension arrangements and planned retirement age?

This is a decision that could change a person's retirement plans, so it's vital to get the right advice going forward. Ovation can provide clear advice that is appropriate to each individuals circumstances.

Help us improve our service

This year is something of a milestone for Ovation.
We are ten years old
and as part of our birthday celebrations we would like to ask your opinion on the service we offer.

Can we ask you to spend a few minutes telling us what you like about our service and where we can improve and develop what we do for you.

This isn’t a ‘fill in the form and we’ll sell you more’ exercise, it’s a genuine attempt to improve the way we care for our clients.

ISAs BEFORE APRIL 5TH - DON'T PAY CAPITAL GAINS TAX

Strong market come back could leave you liable to capital gains tax

Markets have come back strongly from the lows of the credit crunch in 2008, leaving some investors sitting on gains which may be liable to capital gains tax.

You can make sure your investments are tax efficient by maximising this current tax years’ ISA allowance. This year, for those over 50 the allowance has increased to £10,200 for those below 50 this is £7,200. 

Next tax year, these limits increase to £10,200 for all investors above 18.

Mix and match options on ISA’s
The ISA allowance can be made up of cash or stocks and shares holdings or a mix of both.  Currently those eligible to hold £10,200 in an ISA can invest a maximum of £5,100 in cash with the balance in stocks or 100% in stocks and shares.

Those eligible for the lower limit can hold a maximum of £3,600 in cash with the balance of £3,600 in stocks, or a maximum of £7,200 in stocks.

So, where to invest this year?

You will have heard about the gains made in Brazil, Russia, India and China over the past year and be tempted to follow in its wake, Our advice would be to take a more cautious approach as you will be buying in at the top of the market and experience shows this is not ideal.

With the current economic climate, Ovation is taking a cautious view of markets this year. We are recommending you adopt a defensive approach and consider the following funds for investment:

  • L&G Property Fund - Property Funds have returned to life this year, the L&G fund provides an investment opportunity to benefit from a defensive lowly correlated returns relative to other asset classes (risk level  - Cautious)
  • L&G Japan Index Inst – This sector has underperformed relative to Asia pacific and provides low correlation to returns from China (risk level balanced to adventurous)
  • JPM Cautious Total Return – A multi asset fund which aims to provide cautious and absolute return strategy of BOE base rate +2% after charges through asset allocation (risk level cautious to balanced)
  • Fidelity UK Moneybuilder Index – A low cost plain Jane fund for the those investors looking to gain broad based UK exposure, a great first time investor fund (balanced risk)
  • Invesco Perpetual High Income – A behemoth of a fund, but a manager whose track record and stock picking conviction cannot be ignored, a defensive fund for 2010 (balanced risk)
  • Baring Global Agriculture – For those who want a sector specific play, maybe this fund will provide food for thought, a new launch in a small sector means this is more risky (adventurous)

The recommended funds this year will be held on the Ovation online investment platform, powered by Ascentric, for those not on our online platform, investments will be held by Fidelity.

Charges will vary on the Fidelity Fund platform with initial charges on the funds ranging from 5.25% to 0% depending upon the fund selected. Annual charges will be in the region of 1.5%.  The Ovation fund platform will discount the charges on the funds for you and no initial charges will be levied on the funds with annual charges being up to a maximum 1.5% per annum of which 50% will be rebated back into your account to cover costs. 

Precise details of costs for your investment will be supplied on an individual basis.

ISAs BEFORE APRIL 5TH - DON'T PAY CAPITAL GAINS TAX

Strong market come back could leave you liable to capital gains tax

Markets have come back strongly from the lows of the credit crunch in 2008, leaving some investors sitting on gains which may be liable to capital gains tax.

You can make sure your investments are tax efficient by maximising this current tax years’ ISA allowance. This year, for those over 50 the allowance has increased to £10,200 for those below 50 this is £7,200. 

Next tax year, these limits increase to £10,200 for all investors above 18.

Mix and match options on ISA’s
The ISA allowance can be made up of cash or stocks and shares holdings or a mix of both.  Currently those eligible to hold £10,200 in an ISA can invest a maximum of £5,100 in cash with the balance in stocks or 100% in stocks and shares.

Those eligible for the lower limit can hold a maximum of £3,600 in cash with the balance of £3,600 in stocks, or a maximum of £7,200 in stocks.

So, where to invest this year?

You will have heard about the gains made in Brazil, Russia, India and China over the past year and be tempted to follow in its wake, Our advice would be to take a more cautious approach as you will be buying in at the top of the market and experience shows this is not ideal.

With the current economic climate, Ovation is taking a cautious view of markets this year. We are recommending you adopt a defensive approach and consider the following funds for investment:

  • L&G Property Fund - Property Funds have returned to life this year, the L&G fund provides an investment opportunity to benefit from a defensive lowly correlated returns relative to other asset classes (risk level  - Cautious)
  • L&G Japan Index Inst – This sector has underperformed relative to Asia pacific and provides low correlation to returns from China (risk level balanced to adventurous)
  • JPM Cautious Total Return – A multi asset fund which aims to provide cautious and absolute return strategy of BOE base rate +2% after charges through asset allocation (risk level cautious to balanced)
  • Fidelity UK Moneybuilder Index – A low cost plain Jane fund for the those investors looking to gain broad based UK exposure, a great first time investor fund (balanced risk)
  • Invesco Perpetual High Income – A behemoth of a fund, but a manager whose track record and stock picking conviction cannot be ignored, a defensive fund for 2010 (balanced risk)
  • Baring Global Agriculture – For those who want a sector specific play, maybe this fund will provide food for thought, a new launch in a small sector means this is more risky (adventurous)

The recommended funds this year will be held on the Ovation online investment platform, powered by Ascentric, for those not on our online platform, investments will be held by Fidelity.

Charges will vary on the Fidelity Fund platform with initial charges on the funds ranging from 5.25% to 0% depending upon the fund selected. Annual charges will be in the region of 1.5%.  The Ovation fund platform will discount the charges on the funds for you and no initial charges will be levied on the funds with annual charges being up to a maximum 1.5% per annum of which 50% will be rebated back into your account to cover costs. 

Precise details of costs for your investment will be supplied on an individual basis.

Ovation Finance Ltd is authorised and regulated by the Financial Conduct Authority. FCA Number 190914. This web site is for the use of UK investors only.