SBA Financial - Solving the financial puzzle... ...piece by piece

Monthly Update - September 2011

SBA has Moved!

Due to SBA's growing success over the years, we are proud to inform you that we are relocating! Thanks to our client's continued support, we are able to relocate to a larger and more comfortable office, in an amazing location. We feel that not only will this provide a nicer working environment for the whole SBA Team, but also as a valued client, you will have a more relaxing and enjoyable time when you come to visit us for your meetings.

So please note, that our new address is now:

Michelmersh Barn
St Clairs Farm,
Wickham Road,
Droxford,
Southampton
SO32 3PW

Our new contact numbers are:
Tel: 01489 878290
Fax: 01489 877547

We will be inviting you all soon, to our Open Day, where you will be able come along and have a look around our new offices whilst enjoying some wine and nibbles with us.

We would like to take this opportunity to thank all our clients for their support throughout the years; we really could not have made this important move without you.

As ever, if you have any questions at all, please do not hesitate to contact us. We look forward to seeing you all on our Open Day!

Steve, Julie & Jasmine

Market Uncertainty – Is your money in good hands?

The uncertainties in the world continue, and as they continue investment markets around the world reflect these ongoing concerns. In August we saw massive falls in virtually all indexes, with the FTSE 100 falling over a 30-day period from 6,091 to 4,806, a fall of 21%. There are many contributing factors to this, but the general unrest in the Middle East is a major cause, together with low growth figures for the economy and the short period of social stupidity that resulted in the so-called "riots" around the country.

The UK grew a little in the last quarter, but not enough to make a song and dance about. However, if oil prices remain below $100 a barrel, this will significantly help not just the UK recovery but also recovery around the world and with all markets being so volatile it is important to respond as quickly as possible to changes. The following example of how this is achieved may be of help to readers.

For an example let's say you hold two investments; gold and UK Growth Fund Units. The valuations might start something like this:

Gold £1,400 per unit, with 32 units = £44,800 and UK Growth Fund £8 per unit, with 6,000 units = £48,000 Total value = £92,800. The markets fall, and so the UK Growth Fund Units fall to £6 and the gold increases to £1,440 therefore you would now hold.

Gold £1,440 per unit, with 32 units = £46,080 and UK Growth Fund £6 per unit, with 6,000 units = £36,000 Total value = £82,080

Prior to the fall the UK Growth Fund represented 52% of the portfolio, and this reduced to 44% after the fall. Rebasing is the process of resetting the initial allocations. Therefore, you would sell 5 gold units and buy 1,200 units in the UK Growth Fund to restore the percentages to their previous ratios. This has the effect of both selling high and buying low. Most people know that with investments, the general idea is to buy them low and sell them high. That is not actually what most people do, but the process of rebasing forces this to happen.

If the UK Growth Units rebound to £8 and the gold drops back to £1,400, then you have the following: 27 gold units at £1,400 = £37,800 and 7,200 UK Growth Fund Units at £8 = £57,600,600 Total value = £95,400

Following the rebase, you have made a gain because you amplified the rebounding of the values. In this example you have made £2600 from the market movements. If you had simply left the investments how they were, when they rebound, as they inevitably do, you will simply be back where you started.

If you are worried about this type of problem and would like someone to talk to, then just call us, for some help and guidance or come along to one of our regular public workshops.

Steve

Charity Hog Roast!

It gives me great pleasure to confirm that following on from our special charity Hog Roast, which we held on Saturday 20th August we managed to raise a fantastic £600 for Charity!

It was a great afternoon in the glorious August sunshine, filled with good food, good drinks and great games!

Whilst enjoying the sun and some Pimms on the lawn, everyone dug deep and brought lots of raffle tickets, which has lead to this fantastic total being raised!

Representatives from the Hearing Dogs for Deaf People Trust were also on hand all day with their fury companions, to talk to guests about the charity and how much this money really will help the local people in the deaf community.

I want to thank all our clients and guests who attended and send out my sincerest thanks to everyone who worked so hard to make the day happen. I want to thank all the local people and businesses who donated prizes for our raffle and I want to thank everyone who dug deep and spent a lot of money for a such a good cause, especially in the current economic climate, your generosity is greatly appreciated.

Steve

Up-coming Workshops!

There is a lot going on at SBA in 2011. We are busy holding regular monthly workshops on all different financial and estate planning topics. Our aim is to help educate and inform the public, so they can avoid the mistakes and pitfalls, which we encounter every day, when we meet new clients who have been mis-sold or poorly advised in the past. If you or someone you know would benefit from coming along to one of our informal workshops, then please take a look at our Workshop Calendar and find a workshop that interests you.

Book your own expert speaker!

Over the years I have been delighted to help many groups by delivering presentations on a whole range of financial planning areas of importance, ranging from Wills, trusts and estate planning to pensions and retirement planning, savings and investments and many more.

Apart from our own regular workshops, which of course are open to the public, we regularly provide an expert speaker to a number of organisations for their group meetings. If you would like to book an expert speaker for group you belong to, then contact us at our office on 01489 8782900.

Regards