German Stocks Fall; BMW, Hochtief Shares Drop as Deutsche Boerse Advances

http://www.bloomberg.com/news/2011-04-10/air-berlin-hannover-re-metro-siemens-german-equity-preview.htmlGerman stocks retreated, led by declining automakers, after another earthquake struck Japan, shaking buildings in Tokyo.
Daimler AG (DAI) and Bayerische Motoren Werke AG (BMW), the world’s largest makers of luxury cars, dropped more than 2 percent as Credit Suisse Group AG downgraded the industry. Hochtief AG (HOT) plunged 9.5 percent as the builder said profit may fall about 50 percent this year. Deutsche Boerse AG (DB1) rose 0.9 percent after the NYSE Euronext board unanimously rejected a rival approach from Nasdaq OMX Group Inc. and IntercontinentalExchange Inc.
The benchmark DAX Index (DAX) slipped 0.2 percent to 7,204.86 at the 5:30 p.m. close in Frankfurt, retreated from a one-month high. The gauge has climbed 11 percent from this year’s low on March 16 as investors speculated that the global economic recovery will withstand Japan’s March 11 quake, the biggest on record, and popular revolts in the Middle East and north Africa. The broader HDAX Index (HDAX) dropped 0.3 percent today.
“The DAX is trading lower after Credit Suisse turned more cautious on automakers and downgraded Daimler, which also impacted the performance of BMW and Volkswagen,” said Anita Paluch, a sales trader at ETX Capital in London. “The lurking nervousness has come however to the fore as fresh news emerged about another earthquake hitting Japan, causing markets to react negatively.”

Japan Quake

The DAX earlier slid as much as 0.8 percent after a 6.6- magnitude earthquake hit Japan about 60 kilometers (37 miles) from Tokyo Electric Power Co.’s stricken nuclear power plant, prompting a tsunami warning and shaking buildings in the country’s capital.
The quake struck at 5:16 p.m. local time 38 kilometers west of Iwaki and 163 kilometers from Tokyo at a depth of 10 kilometers, according to the U.S. Geological Survey. USGS revised the magnitude down from 7.1 earlier.
Daimler slumped 2.7 percent to 50.65 euros as Credit Suisse Group AG downgraded the stock to “neutral” from “outperform.” BMW slid 2.5 percent to 57.10 euros, while Volkswagen AG, Europe’s largest carmaker, declined 1.4 percent to 110.45 euros.
Credit Suisse also downgraded auto-industry shares to “benchmark,” saying it’s cautious on stocks that are more reliant on economic growth. The China Association of Automobile Manufacturers said sales may grow at a slower pace than previously forecast this year.
Hochtief tumbled 9.5 percent to 62.26 euros, the biggest drop in two years, after its Australian unit predicted a loss and announced a A$757 million ($800 million) stock sale. Germany’s largest listed builder said it will take up its full allotment in Leighton Holdings Ltd.’s share sale.
Deutsche Boerse Rises
Deutsche Boerse gained 0.9 percent to 54.93 euros, the highest price in a month. NYSE Euronext yesterday reaffirmed its $9.67 billion agreement with Deutsche Boerse for the Frankfurt- based exchange to buy the operator of the New York Stock Exchange. NYSE said Deutsche Boerse’s offer will create more value and has a greater likelihood of winning regulatory approval.
Deutsche Boerse doesn’t plan to raise its offer for NYSE Euronext, according to three people familiar with the matter. The Frankfurt-based exchange operator is confident it can close the transaction in the fourth quarter, said the people, who declined to be identified because talks are confidential.
Roth & Rau AG (R8R), a maker of solar-cell production equipment, surged 13 percent to 22.30 euros, the biggest gain since 2008, after Meyer Burger Technology AG agreed to buy the German company for 357 million euros ($516 million).
To contact the reporter on this story: Julie Cruz in Frankfurt at jcruz6@bloomberg.net
To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net

Sree Rayalaseema Hi-Strength Hypo drops ex-dividend

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Capital Market / 15:23 , Mar 28, 2011

Sree Rayalaseema Hi-Strength Hypo declined 3.02% to Rs. 46.50 at 15:21 IST on BSE, after the stock turned ex-dividend today, 28 March 2011, for an interim dividend of Rs. 1.50 per share for the year ending March 2011.

Meanwhile, the BSE Sensex was up 144.09 points, or 0.77%, to 18,959.73. On BSE, 5,743 shares were traded in the counter as against average daily volume of 5,543 shares over the past one quarter. The stock hit a high of Rs. 49.50 and a low of Rs. 46.15 so far during the day. The stock had hit a record high of Rs. 73.95 on 28 December 2010 and a 52-week low of Rs. 29.80 on 7 May 2010. The small-cap stock had outperformed the market over the past one month till 25 March 2011, gaining 16.38% compared with the Sensex's return of 6.30%. The stock had underperformed the market in past one quarter, falling 29.07% as against Sensex's decline of 6.27%. The company has an equity capital of Rs. 10.95 crore. Face value per share is Rs. 10. Before turning ex-dividend, the stock offered a dividend yield of 3.13% based on the closing price of Rs. 47.95 on Friday, 25 March 2011. Sree Rayalaseema Hi-Strength Hypo's net profit soared 83.9% to Rs. 3.77 crore on 72.8% jump in net sales to Rs. 51.07 crore in Q3 December 2010 over Q3 December 2009.

Reasons to Invest Offshore By Hypo Venture Capital Zurich

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Here at Hypo Venture Capital Zurich, Switzerland we are committed to offering our clients access to the latest and broadest range of financial services and products on the market.

What are the benefits available to you from the world of offshore savings, investment, finance and banking? Here at Hypo Venture Capital Zurich, Switzerland we are committed to offering our clients access to the latest and broadest range of financial services and products on the market. We know that choosing the right strategy, the right investment and the right product is no easy task in this day and age! Whether its advice, investments or financial planning we are here to answer all your questions and facilitate all your financial needs. Even in this day and age of enlightenment thanks to the pervasive nature of information dissemination via the internet, some people are still concerned about the legalities and legitimacy of the offshore world of finance and banking. For some reason others simply assume that onshore equates to a ‘safe haven’ for money and offshore equates to a ‘risky tax haven.’ Well, you and I know that that is simply not the case! However, even though it is now clearer to more people that the offshore world holds many potential taxation benefits, there are still questions to be answered about why one should invest offshore and in this article we explore the benefits. First things first…here’s another myth I wish to dispel – some people say that offshore investments and bank accounts are more lightly regulated than their entity-type-counterparts onshore…now, that’s not necessarily true! Yes, certain jurisdictions give fund managers, bankers and investors pretty much free rein so that the rewards and risks are potentially far greater – but some jurisdictions are very highly regarded among financial professionals simply because of the incredibly high standards of protection they afford investors and account holders through insurance schemes and government regulation requirements for example: The Isle of Man and the Channel Islands are examples of offshore jurisdictions where offshore investment and saving policy or bank account holders are afforded high levels of protection. Just taking the Isle of Man – it offers policyholder protection schemes, it also has the highest financial services rating issued by the OECD, FATF and FSF and it has an independent Financial Services Ombudsman scheme not to mention the fact that both Standard and Poor’s and Moody’s have given the Isle of Man AAA ratings. So – myth dispelled, let’s move on. In terms of the benefits available when investing offshore they will always, always depend on the particular circumstances of the individual investor - but offshore financial services and structures can be used as part of an overall asset protection strategy for example, investing offshore can afford an investor greater flexibility in terms of international accessibility and the commodities, equities, derivatives, stocks, shares or companies they can invest in, plus there are of course sometimes significant taxation benefits available to an account holder depending on their countries of tax residence and domicile. Other answers to the question posed by this article – namely ‘why invest offshore?’ – are because there are general benefits available including more efficient estate planning potential, privacy and confidentiality, better interest returns, the chance to exploit active business interests overseas in low or no tax locations and global access to assets and income. So, while the internet has been fantastic in terms of allowing more people to become far more broadly informed - especially about subjects as seemingly taboo as all things offshore - it is still absolutely in a government’s interests to avoid advising people that the offshore world is open and available to them because they may well lose out on taxation revenue as a result! This means it is up to independent websites such as World Financial Asset Advisory to give you free access to facts and general information and for you to then see how and why such information is or is not applicable to your own personal circumstances. At which stage you can then take specific and expert advice from a qualified individual as to how you can best utilize the offshore world. And on that final note there is just one more thing to say! A potential investor (you) has to be absolutely sure that the actions they are about to take in terms of placing assets offshore will be of benefit to them. Additionally they need to make sure that they are acting legally, that a company they are entrusting with their money is legitimate and that they understand the risks associated with their decisions. To that end we at Hypo Venture Capital will always advise that you should to do your own due diligence on the jurisdiction recommended to you or chosen by you, the company you are considering investing or banking with and the policy or account you are taking out. Common sense is the main key to ensuring you do not make a mistake when entering the world of offshore finance and common sense is something we here at Hypo Venture Capital pride ourselves on! About the Author: Stephen Holmes is a Senior Vice President at Hypo Venture Capital, with experience in the Financial Services industry spanning over 25ys and 3 Continents. Stephen currently directs the Portfolio Risk Management Group after moving from the Equity Derivatives Research Group 3yrs ago. He has a PhD in Experimental Particle Physics and has been working in the alternative investment industry since 1992. His interests include classical music, reading and he often is a guest speaker at corporate functions with a focus on ‘Technology in Society’.  Want to know more? Hypo Venture Capital Zurich is an independent investment advisory firm which focuses on global equities and options markets. Our analytical tools, screening techniques, rigorous research methods and committed staff provide solid information to help our clients make the best possible investment decisions. All views, comments, statements and opinions are of the authors. For more information go to www.hypovc.com

Hypo Venture Capital: How Much Money Is Needed for Retirement?

http://www.upvery.com/38851-hypo-venture-capital-how-much-money-is-needed-for-retirement.html

(UpVery.com) Jan 16, 2011 -- Most early- and mid-career workers see retirement as being far off in the distance. While retirees spend their days relaxing under swaying palms and contemplating how thankful they are to be out of the rat race for good, the reality is quite different. Today, people are retiring later and finding the need to save more money to live comfortably after retirement. No two ways about it, the longer people wait to retire, the more comfortable their lives will be.

Here at Hypo Venture Capital we are committed to offering our clients access to the latest and broadest range of financial services and products on the market. We know that choosing the right strategy, the right investment and the right product is no easy task in this day and age! Whether its advice, investments or financial planning we are here to answer all your questions and facilitate all your financial needs.

How Much Money Does a Person Need to Retire?
How much money a person needs for retirement depends on a variety of factors including desired lifestyle, location, retirement age, anticipated social security payments, and perhaps even medical needs. While some experts predict a person may need anywhere between $850,000-$1.5 million to retire comfortably, the amount is different for everyone all over the globe.
In order to determine exactly how much a person needs for retirement, numerous retirement planning and financial websites feature retirement calculators. Using a retirement calculator, the person enters information including desired retirement age, expected social security payments, current age, current annual income, and life expectancy. The results show the total amount of money needed to retire comfortably factoring in inflation.
The Bottom Line on How Much Money is Needed for Retirement
Bottom line, people should begin saving for retirement as soon as possible, preferably in their 20’s. The age of retirement varies; but if the person waits until age 70 to retire, he or she will enjoy a comfortable retirement. The amount of money needed for retirement depends on a variety of factors and is different for everyone. But with careful retirement planning and the use of a retirement calculator, people can live out their Golden Years more comfortably.
Want to know more?

Hypo Venture Capital is an independent investment advisory firm which focuses on global equities and options markets. Our analytical tools, screening techniques, rigorous research methods and committed staff provide solid information to help our clients make the best possible investment decisions. All views, comments, statements and opinions are of the authors. For more information go to www.hypovc.com

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Hypo Venture Capital Stephen Holmes Stockerhof Dreikoenigstrasse 31 A 8002 Zurich Switzerland +41 (0)44 208 3530 info@hypovc.com http://www.hypovc.com

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Hypo Venture Capital Seizing Opportunities in Tough Economic Times: hypo venture capital zurich switzerland

Here at Hypo Venture Capital we are committed to offering our clients access to the latest and broadest range of financial services and products on the market. We know that choosing the right strategy, the right investment and the right product is no easy task in this day and age! Whether its advice, investments or financial planning we are here to answer all your questions and facilitate all your financial needs.
Many of us have concerns about staying on track in these uncertain economic times. Mounting layoffs, plunging home values and declining stock prices all have a way of generating fear and uncertainty.
"Even though things look bad sometimes, you need to remain focused on opportunities," says Andrew Bradley, HVC’s chief investment officer. "We like to say there's opportunity in every market."
Today's investors face unprecedented challenges
2009 got off to a rough start, with the economy and financial markets still reeling from last year's credit market meltdown and resulting financial crisis. The markets traded down in a painful, correlated fashion, while economic activity plunged.
But since the end of the first quarter, signs of improvement have emerged. The equity market has enjoyed a meaningful rally since mid-March, led by the financial and consumer discretionary sectors. There is still have a long way to go before things get considerably better and before the economic picture brightens considerably but overall the worst may be behind us.
The housing market remains a major thorn in the side of economic growth. Part of the problem is too much supply relative to demand. We are starting to see housing prices fall to the point where buyers are attracted into the market and transactions are occurring.
These imbalances go beyond housing to a worldwide perspective. For example, the United States consumes too much and saves too little, whereas developed and emerging Asian countries save too much and consume too little. We should see the impact of these imbalances play out in the coming months, as countries around the world tackle the mounting challenges.
A return to growth is on the horizon
We believe economic growth may resume in the fourth quarter of 2009. That doesn't necessarily mean things are going to rocket up in the markets, but it means we're setting the stage for better times ahead.
The federal government's stimulus package along with the Federal Reserve’s extraordinary expansion of its balance sheet will begin to show results.
Although the amount of federal stimulus is record-breaking, it's been necessary to combat the significant deflationary pressures triggered by the financial crisis. Once deflation takes hold, it's extremely difficult to counteract. In an environment in which consumers and businesses expect prices to fall, they begin to defer consumption, believing they will be able to make their purchases at a cheaper price down the road. Therefore, the government is doing everything it can to ward off deflation, even as it risks promoting inflation.
Opportunity is within your reach
As troubling as recent market events have been, it's important not to get consumed by the daily ups and downs. Instead, focus on factors that promote long-term financial success.
These factors are most evident when examining the philosophy and practices of those who have achieved financial comfort — people who possess the ability to tackle any tough financial situation and the insight to capitalize on opportunity. Author and TV commentator Jean Chatzky calls this phenomenon "the difference." "Whatever the economy, these are the people who have the skills and attributes necessary to move into lasting financial comfort and wealth."
What makes a financial difference
Recent research on American attitudes toward money and personal finances found that financially successful people exhibit several common factors, including happiness/optimism, resilience, connectedness and habitual saving.
These are the people who know the difference.
How you can stay on track
Based on the characteristics and experiences of financially successful Americans, there are several actions and strategies to help people stay on track, focus on saving and protect loved ones during good and bad economic times.
People who have goals for the short, medium and long term, research has shown, actually achieved their goals more often than people who don't plan. "Why? Because when you’re running a race, it helps to know where you're going.
Consider rebalancing your portfolio

Hypo Venture Capital Zurich, Switzerland Retirement Investing Tips

Consider Many Retirement Investment Options and Diversify Portfolio
Here at Hypo Venture Capital Zurich we are committed to offering our clients access to the latest and broadest range of financial services and products on the market. We know that choosing the right strategy, the right investment and the right product is no easy task in this day and age! Whether its advice, investments or financial planning we are here to answer all your questions and facilitate all your financial needs.
There are so many options for retirement investment planning that even the most ambitious person can feel daunted. But learning about retirement investment strategies as a young or middle-aged adult can save all kinds of financial worries later. The soundest approach to investing for retirement is to save slowly but persistently, and invest widely with as much information as possible.
The Best Approach to Retirement Investing
Every expert has a different recommendation for the best retirement investment decisions, but some advice is universal:
1.            Figure out how much retirement income will be needed. Retirement investment calculators are available online that can predict how much a given investment will be worth or how much retirement income will be needed to maintain quality of life by retirement.
2.            Start now by opening an investment retirement savings account. Even a small amount, deposited every week or every paycheck, eventually adds up to substantial savings that can be used to fund a comfortable retirement.
3.            Knowledge is power. Take every opportunity to learn about retirement investments, as well as the best investment planning in general, and invest money from the aforementioned retirement account wisely as opportunities appear.
4.            Create a diverse portfolio. Some stocks will go up while others go down. The real estate market might be booming while sales in other areas fall. The best retirement investment planning takes this into account and invests in several different options at once to ensure a solid investment portfolio that will do well, no matter what.
Retirement Investment Options
There are many retirement investment strategies available. While the best investment plan is always to diversify, with several investments, the following options are a key part of most investment strategies aimed at yielding retirement income:
•             Annuities – An annuity works like the opposite of a mortgage. Money is invested in advance, and in retirement years the annuity pays out principle and interest on the investment.
•             GICs – GICs guarantee a fixed rate of interest if money is left in an investment for a pre-arranged period. Once the term of the GIC is up, retirement funds can be reinvested again until needed.
•             Stocks, Bonds, and Mutual Funds – While there are differences, each of these investment vehicles is a way to speculate by investing money where it may grow – or may, possibly, shrink. The riskier the investment, the greater the potential earning. It’s wise to invest a portion of retirement savings in riskier investments like stocks and mutual funds, if thorough research suggests that they have a good chance of succeeding in delivering a healthy return on investment.
•             Home Equity – Real estate is always a smart investment, and paying off the family home before retirement is one of the smartest investments. House values will only rise over time, and home equity can also be used in a reverse mortgage or withdrawn in a lump sum home equity loan if money is needed to supplement retirement income.

Hypo Venture Capital Investing Money: Good Investments for the Investor Who Feels Clueless

Hypo Venture Capital Investing Money: Good Investments for the Investor Who Feels CluelessHere at Hypo Venture Capital we are committed to offering our clients access to the latest and broadest range of financial services and products on the market. We know that choosing the right strategy, the right investment and the right product is no easy task in this day and age! Whether its advice, investments or financial planning we are here to answer all your questions and facilitate all your financial needs.
In 2011 and into the future most folks in search of good investments will again turn to mutual funds for investing money, and for good reason. These funds do the money investing for you and try to pick good investments for their (your) portfolio. It’s your money and you pick the funds, so in case you feel clueless, here we take the mystery out of investing for 2011 and beyond by getting back to basics.
In the process of investing money for the future you really only have 4 basic choices. That was true 100 years ago and still applies in 2011 and beyond. There are good safe investments that pay interest, bonds that pay more interest, stocks that grow in value most of the time; and alternative investments like gold & other commodities including real estate that offer growth opportunities sometimes when stocks don’t. Those are your basic choices when investing money unless you bury the stuff, in which case inflation and decomposition can eat away at your underground deposit.
Now let’s look at each of these 4 alternatives for investing money in search of good investments in mutual funds. Cash in the bank is safe and so are money market securities. These don’t look like good investments now because interest rates are near all-time lows. That won’t always be the case, so put some money in money market funds for safety.
Bond funds are a good way for most folks to invest money in bonds and they do pay higher interest income, but they are not really safe investments as most folks have been lead to believe. When today’s record low interest rates start to go up, most bonds and the funds that invest your money in them will be real losers. Memorize this statement: when rates go up bond prices (values) go down. The key to investing money in bond funds for 2011 and beyond is this: put money in short-term and intermediate-term bonds funds while avoiding long-term bond funds. The latter will get crushed if (when) interest rates turn around and go up.
Stocks are our third category, and stock mutual funds are the best way of investing money in them for average and especially clueless investors. The truth is that for 2011 and beyond this is the wild card. High unemployment and slow growth in the economy don’t paint a pretty picture here, but the other choices don’t look great either. Put some money in dividend-paying high-quality diversified stock funds. Avoid riskier growth funds that invest money in stocks that don’t pay dividends.
Investors who overlook other alternatives miss some good investments because of this oversight. Investing money in the likes of gold, oil, real estate and basic materials is greatly simplified by simply investing in specialty stock funds that specialize in these areas. The advantage here: these funds can add additional diversification to your portfolio because they sometimes produce profits when the stock market is weak.
We have covered your 4 basic choices starting with safe investments and getting progressively riskier. Investing money for 2011 and beyond simply amounts to covering all 4 bases, emphasizing the funds that best fit your risk profile. One year’s good investments might not be repeat performers the next year, but with a diversified portfolio of funds working for you you’ve got good odds for success.

Hypo Venture Capital Investing Money: Good Investments for the Investor Who Feels Clueless

Hypo Venture Capital Investing Money: Good Investments for the Investor Who Feels CluelessHere at Hypo Venture Capital we are committed to offering our clients access to the latest and broadest range of financial services and products on the market. We know that choosing the right strategy, the right investment and the right product is no easy task in this day and age! Whether its advice, investments or financial planning we are here to answer all your questions and facilitate all your financial needs.
In 2011 and into the future most folks in search of good investments will again turn to mutual funds for investing money, and for good reason. These funds do the money investing for you and try to pick good investments for their (your) portfolio. It’s your money and you pick the funds, so in case you feel clueless, here we take the mystery out of investing for 2011 and beyond by getting back to basics.
In the process of investing money for the future you really only have 4 basic choices. That was true 100 years ago and still applies in 2011 and beyond. There are good safe investments that pay interest, bonds that pay more interest, stocks that grow in value most of the time; and alternative investments like gold & other commodities including real estate that offer growth opportunities sometimes when stocks don’t. Those are your basic choices when investing money unless you bury the stuff, in which case inflation and decomposition can eat away at your underground deposit.
Now let’s look at each of these 4 alternatives for investing money in search of good investments in mutual funds. Cash in the bank is safe and so are money market securities. These don’t look like good investments now because interest rates are near all-time lows. That won’t always be the case, so put some money in money market funds for safety.
Bond funds are a good way for most folks to invest money in bonds and they do pay higher interest income, but they are not really safe investments as most folks have been lead to believe. When today’s record low interest rates start to go up, most bonds and the funds that invest your money in them will be real losers. Memorize this statement: when rates go up bond prices (values) go down. The key to investing money in bond funds for 2011 and beyond is this: put money in short-term and intermediate-term bonds funds while avoiding long-term bond funds. The latter will get crushed if (when) interest rates turn around and go up.
Stocks are our third category, and stock mutual funds are the best way of investing money in them for average and especially clueless investors. The truth is that for 2011 and beyond this is the wild card. High unemployment and slow growth in the economy don’t paint a pretty picture here, but the other choices don’t look great either. Put some money in dividend-paying high-quality diversified stock funds. Avoid riskier growth funds that invest money in stocks that don’t pay dividends.
Investors who overlook other alternatives miss some good investments because of this oversight. Investing money in the likes of gold, oil, real estate and basic materials is greatly simplified by simply investing in specialty stock funds that specialize in these areas. The advantage here: these funds can add additional diversification to your portfolio because they sometimes produce profits when the stock market is weak.
We have covered your 4 basic choices starting with safe investments and getting progressively riskier. Investing money for 2011 and beyond simply amounts to covering all 4 bases, emphasizing the funds that best fit your risk profile. One year’s good investments might not be repeat performers the next year, but with a diversified portfolio of funds working for you you’ve got good odds for success.

Funds is The Answer Your Looking For by Hypo Venture Capital Zurich

Hypo Venture Capital is an independent investment advisory firm which focuses on global equities and options markets.

Here we look to dispel some of the jargon and confusion surrounding ‘Funds’, breaking them down, with no nonsense explanations in an attempt to help you understand this strategic investment.

Starting out?

Here at Hypo Venture Capital Zurich, Switzerland we are committed to offering our clients access to the latest and broadest range of financial services and products on the market. We know that choosing the right strategy, the right investment and the right product is no easy task in this day and age! Whether its advice, investments or financial planning we are here to answer all your questions and facilitate all your financial needs.

Many newcomers to equity investment are nervous about investing in individual firms – and with good reason. Putting all your money into a few stocks is a high-risk strategy, especially for the inexperienced, because it leaves you vulnerable to sharp fluctuations in the share price of the individual stocks you pick, not the markets in which they trade. If you get it right and pick winners, great. But if you pick a couple of big losers, your whole portfolio will be scuppered. Collective or ‘pooled’ investments can diversify your holdings and therefore reduce that risk.

Why pooled funds?

Unit trusts, open-ended investment companies (Oeics, pronounced ‘oiks’) and investment trusts are all vehicles that let you pool your money with lots of other ‘retail’ – or small – investors. (In the US, this kind of investment is known as a ‘mutual fund’.) The pooled money is then invested on your behalf in a wide range of different equities by specialist fund managers. (There are also funds that invest in bonds or other assets, such as commercial property or commodities.) The fund manager takes a fee to run the fund and research what stocks to buy.

If they get it right, it means you get access to a highly diversified range of stocks at a reasonable cost. It also gives you easy access to asset classes and international markets that would otherwise be difficult and/or expensive to invest in. For example, specialist funds are available that invest only in Japan, or Latin America, or only in technology firms, and so on. Also, different funds are designed to meet different investment objectives and there’s a wide range to choose from. Some aim for income, some for capital growth, and some for a balance of the two.

Unit trusts and Oeics

Until recently, unit trusts were the main kind of collective retail investment in the UK. With a unit trust, you buy a fixed number of units in a fund, which then rise and fall according to the value of the underlying assets the trust invests in. Over the past few years, many fund managers have converted their unit trusts into Oeics in the belief that investors find them simpler to understand. From the point of view of the investor, Oeics are more or less the same as unit trusts; they are ‘open-ended’ in the sense that (like unit trusts) the fund’s size expands and contracts depending on investor demand. The big difference is that Oeics have only one price (as opposed to the dual bid/offer pricing of unit trusts).

Investment trusts

Like Oeics, investment trusts are firms whose business is to invest in the shares of other companies. But unlike unit trusts and Oeics, investment trusts are ‘closed-ended’: there are a fixed number of shares in issue, which are traded on the stock exchange. The purpose of an investment trust is, broadly speaking, the same as an Oeic – to give smaller investors cheap access to a wide range of shares. But they are structured rather differently.

The fact that investment trust shares are traded on the open market (the London Stock Exchange) means the share price is determined not just by the value of the trust’s underlying assets, but by current market demand for its shares. Sometimes, if an investment trust is popular, it will trade at a premium to its net asset value (NAV). Other times, it will be trading at a discount.

Investment trusts can borrow money (called “gearing”), often up to 10%-15% of the value of assets and use it to invest in the markets. This is great if the markets go up, but of course the funds losses escalate if they fall.

The final significant difference is that investment trusts are cheaper to buy than unit trusts or Oeics. Actively managed unit trusts have upfront fees of anything up to 5%-6% of the investment, plus an annual management fee of around 1.5%. By contrast, charges on investment trusts are typically less than 1%.

Passive or active?
One way of minimising the cost is to go for an index-tracking fund. These funds aim to match or ‘track’ the performance of a given market index, such as the FTSE All-Share or the FTSE 100. They do this using computer programs to work out how much of each individual stock they need to buy and sell to mimic the performance of the index as a whole.

That’s much cheaper than employing lots of expensive ‘experts’ and researchers, so index-trackers are much cheaper than ‘actively-managed’ funds. Index-trackers might seem like a safety-first option, but there’s a great deal of research evidence to suggest that they outperform most actively managed funds over the long-run because their charges are so low (typically 0.5%, or even less).

Reasons to Invest Offshore By Hypo Venture Capital Zurich

Hypo Venture Capital Zurich is an independent investment advisory firm which focuses on global equities and options markets.

What are the benefits available to you from the world of offshore savings, investment, finance and banking?
Here at Hypo Venture Capital Zurich, Switzerland we are committed to offering our clients access to the latest and broadest range of financial services and products on the market. We know that choosing the right strategy, the right investment and the right product is no easy task in this day and age! Whether its advice, investments or financial planning we are here to answer all your questions and facilitate all your financial needs.
Even in this day and age of enlightenment thanks to the pervasive nature of information dissemination via the internet, some people are still concerned about the legalities and legitimacy of the offshore world of finance and banking. For some reason others simply assume that onshore equates to a ‘safe haven’ for money and offshore equates to a ‘risky tax haven.’

Well, you and I know that that is simply not the case! However, even though it is now clearer to more people that the offshore world holds many potential taxation benefits, there are still questions to be answered about why one should invest offshore and in this article we explore the benefits.

First things first…here’s another myth I wish to dispel – some people say that offshore investments and bank accounts are more lightly regulated than their entity-type-counterparts onshore…now, that’s not necessarily true!

Yes, certain jurisdictions give fund managers, bankers and investors pretty much free rein so that the rewards and risks are potentially far greater – but some jurisdictions are very highly regarded among financial professionals simply because of the incredibly high standards of protection they afford investors and account holders through insurance schemes and government regulation requirements for example:

The Isle of Man and the Channel Islands are examples of offshore jurisdictions where offshore investment and saving policy or bank account holders are afforded high levels of protection. Just taking the Isle of Man – it offers policyholder protection schemes, it also has the highest financial services rating issued by the OECD, FATF and FSF and it has an independent Financial Services Ombudsman scheme not to mention the fact that both Standard and Poor’s and Moody’s have given the Isle of Man AAA ratings.

So – myth dispelled, let’s move on.

In terms of the benefits available when investing offshore they will always, always depend on the particular circumstances of the individual investor - but offshore financial services and structures can be used as part of an overall asset protection strategy for example, investing offshore can afford an investor greater flexibility in terms of international accessibility and the commodities, equities, derivatives, stocks, shares or companies they can invest in, plus there are of course sometimes significant taxation benefits available to an account holder depending on their countries of tax residence and domicile.

Other answers to the question posed by this article – namely ‘why invest offshore?’ – are because there are general benefits available including more efficient estate planning potential, privacy and confidentiality, better interest returns, the chance to exploit active business interests overseas in low or no tax locations and global access to assets and income.

So, while the internet has been fantastic in terms of allowing more people to become far more broadly informed - especially about subjects as seemingly taboo as all things offshore - it is still absolutely in a government’s interests to avoid advising people that the offshore world is open and available to them because they may well lose out on taxation revenue as a result! This means it is up to independent websites such as World Financial Asset Advisory to give you free access to facts and general information and for you to then see how and why such information is or is not applicable to your own personal circumstances. At which stage you can then take specific and expert advice from a qualified individual as to how you can best utilize the offshore world.

And on that final note there is just one more thing to say! A potential investor (you) has to be absolutely sure that the actions they are about to take in terms of placing assets offshore will be of benefit to them. Additionally they need to make sure that they are acting legally, that a company they are entrusting with their money is legitimate and that they understand the risks associated with their decisions.