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Following the announcement on December 5th by Minister for Finance, Michael Noonan, that legislation for REITs will be enacted in early 2013, NCB co-hosted a major conference on the topic which was held in the Convention Centre, Dublin on January 24th 2013.
Invest For Success NCB is pleased to introduce "Invest for success" a ground breaking web based information, education and learning programme
Fantasy Portfolio
WEALTH MANAGEMENT PROFILE
Greg Dilger
Head - Wealth
Management
Today's wealthy individuals have high expectations and demand a whole lot more.
They have a wide range of different financial and investment needs and in turn require a much more holistic, intelligent and user friendly response from their service providers.
They require planning. They require independent advice. They require specialist expertise. They require performance.
NCB's Wealth Management group was set up specifically to meet these challenges. Our objective is to provide a genuinely superior service to private clients right across the investment spectrum.
From our origins as a small execution stockbroker in the mid 1980s, we have evolved into a rounded investment boutique, which offers a wide range of services aimed primarily at the higher end of the private client market. As you visit our website, I hope you will gain an insight into what makes NCB different.
Our Philosophy
We specialise in the diverse and often complex needs of wealthy investors and their families. We believe we have a unique insight into our customers' needs and in an industry often known for over-promising and under-delivery, we aim to deliver an altogether more appealing customer experience.
We are genuinely committed to building longer term client relationships, and are prepared to do the work and graft involved. We believe our biggest differentiator is that not only do we talk about doing the basics well - we actually do them. More than anything our objective is to ensure our clients invest sensibly and strictly in accordance with their risk tolerance and performance objectives.
Daily Research
May 14th, 2013
10:43am
Wealth Management Daily Research
Companies:
Ireland
Bank of Ireland, DCC
United Kingdom
Barclays
Referenced:
Germany
Continental
Ireland
Grafton, Irish Continental Group
Market Summary â€" Closing Levels & 1 Day Movements
S&P 500
1633.8
0.0
Dow Jones Indus.
15091.7
-0.2
Nikkei 225
14782.2
-0.2
Hang Seng
22989.8
-0.5
ISEQ Overall
3968.8
-0.3
FTSE 100
6631.8
0.0
DJ EURO STOXX 50
2777.4
-0.5
EUR / GBP
0.8493
EUR / USD
1.2993
§Market Overview
§It was a quiet day in equity markets on both sides of the Atlantic yesterday, with the FTSE 100 rising by 6.8 points and the Dow Jones falling 26.8. In the UK the interest was in bonds â€" not gilts, which were little changed, but the Co-Op, which saw further heavy falls as concerns about its capital adequacy continued. Barclays suggested that measures to plug the gap may be inadequate, necessitating a bail-in of junior bond-holders.
§There was little in the way of economic news either, but what there was provided encouragement, with US retail sales for April coming in better than expected. In the UK the ONS reported that few householders consider their mortgage to be a burden, while the latest RICs survey reports increased sales and new buyer enquiries.
§Overnight in Asia it was also quiet. India’s WPI inflation fell to 4.89% in April from 5.96% in March; it had been expected to be 5.5%. However India has something of a track record in upward revisions to inflation and, sure enough, February’s WPI figure was increased to 7.28% from 6.84%. Nevertheless the trend is firmly downwards, providing support for the central bank’s easier money policy.
§This morning German inflation has been reported and is in line with forecasts. Later we have the ZEW surveys for May and Eurozone industrial production. It’s another quiet day for USD data.
§ICG â€" ICG reports solid start to the year
§Graftonâ€" IMS: FY outlook remains cautious; Q1 performance marginally ahead
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NCB Stockbrokers Limited is regulated by the Central Bank of Ireland. Member of the Irish Stock Exchange. Member of the London Stock Exchange. Registered No: 223158. NCB Corporate Finance Limited is regulated by the Central Bank of Ireland. Registered No: 222489
Market Summary â€" Closing Levels & 1 Day Movements
S&P 500
1633.7
0.4
Dow Jones Indus.
15118.5
0.2
Nikkei 225
14607.5
1.2
Hang Seng
23321.2
-1.4
ISEQ Overall
3964.8
-0.1
FTSE 100
6625.0
-0.3
DJ EURO STOXX 50
2785.2
-0.3
EUR / GBP
0.8442
EUR / USD
1.2971
§Market Overview
§It is a relatively quiet week for economic releases. So far today we have had a few bits of data out of China related to industrial production and retail sales, which for what it’s worth were in line with expectations although few people probably pay too much attention any more, since it is widely accepted that the Chinese data is made up. Later today, the US will release its retail sales figures, which is expected to be slightly negative. Tuesday will be very quiet, whilst Wednesday sees the release of preliminary GDP data from several major European countries, where negative readings will confirm that, not only France but Germany too will have slipped back into recessions, although it should be noted that this isn’t the expectation. Also out on Wednesday will be the Bank of England quarterly inflation result, which will be the last of Sir Mervin’s tenure and a potential indicator about near-term monetary policy. Overnight, there will be GDP data from Japan, which is expected to be strong at +0.7% following the start of the much talked-about aggressive monetary expansion. Thursday sees the release of a number of key US data points including CPI, unemployment claims and the Philly Fed index and we wrap up the week with University of the Michigan Consumer Sentiment on Friday.
§In terms of major company announcements this week, in addition to Centrica this morning, we also have earnings from Compass on Wednesday, and Aviva, Cairn Energy and Travis Perkins on Thursday.
§CRH â€" Buzzi Unicem Q1 sees positive U.S. performance offset by continued weakness in Europe
§CRH â€" Beacon Roofing Supply reports in line Q2; outlook positive
§Irish Financials â€" Deposit rates continue to fall
§Economic Updateâ€" Irish Construction PMI weakens again in April
§Irish Financials â€" FBD Holdings â€" Liberty booked underwriting loss of €20m last year
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NCB Stockbrokers Limited is regulated by the Central Bank of Ireland. Member of the Irish Stock Exchange. Member of the London Stock Exchange. Registered No: 223158. NCB Corporate Finance Limited is regulated by the Central Bank of Ireland. Registered No: 222489
Market Summary â€" Closing Levels & 1 Day Movements
S&P 500
1626.7
-0.4
Dow Jones Indus.
15082.6
-0.1
Nikkei 225
14191.5
2.9
Hang Seng
23211.5
0.5
ISEQ Overall
3947.6
-0.3
FTSE 100
6592.7
0.5
DJ EURO STOXX 50
2773.2
0.7
EUR / GBP
0.8444
EUR / USD
1.3030
§Market Overview
§Equity markets had a fairly subdued session yesterday. The FTSE 100 closed 14 basis points higher, although markets in the US and Europe showed notable underperformance, with the Eurostoxx-50 and the S&P-500 both down 0.4% on the day.
§Meanwhile markets in Japan performed very well overnight, with the Nikkei up 3% after the Yen finally traded below the 100 level against the Dollar. The Yen has now lost over 25% against the Dollar since November last year. If this weakness continues, it is going to be more and more difficult for Japan’s trading partners to stand aside and continue to show no opposition. Indeed, German export numbers this morning were weaker than expected. In the last week we have already seen interest rate cuts in Europe, India and Korea, partly in response to Japan’s QE policy.
§On the economic front yesterday, there was some positive news from the UK, where Industrial Production numbers for March beat expectations. Industrial Production fell 1.4% year-on-year, but the consensus was for a decline of 1.6%. Meanwhile the Bank of England announced no change to policy as expected, with interest rates held at 0.5% and no additional QE measures announced. Meanwhile the flow of negative news from Europe continued, with Spanish Industrial Production falling 9.8% year-on-year and Greek unemployment increasing to a new record high of 27%. Italian and Spanish government bond yields also rose after a relatively disappointing Spanish bond auction.
§There was however more positive news from the US, where Initial Jobless Claims beat expectations, falling by 4,000 to 323,000. The all important 4 week moving average decreased to 337,000.
§Looking ahead to today, Trade and Construction Output numbers are released from the UK at 9-30. Italian Industrial Production numbers are also released at 9-00. Meanwhile from the US, Bernanke will be speaking at the Chicago Fed Conference at 2-30, where the market will be looking for any clues on future policy. The G7 Finance Ministers and Central Bank Governors will also be meeting over the next two days.
§DCC â€" FY results to get boost from cold weather
§Economic Update â€" Consumer prices unchanged in April
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NCB Stockbrokers Limited is regulated by the Central Bank of Ireland. Member of the Irish Stock Exchange. Member of the London Stock Exchange. Registered No: 223158. NCB Corporate Finance Limited is regulated by the Central Bank of Ireland. Registered No: 222489
Any Insights: ‘The Importance of (not) Being Idle’ - 09.05.13
Companies:
Ireland
Bank of Ireland
‘The Importance of (not) Being Idle’ â€" Oasis
The correct title of this week’s song is actually ‘The Importance of Being Idle’, so I have taken a poetic liberty for the purpose of making a point. Understandably, many investors we meet remain scarred by the experience of 2008/2009 and are reluctant to invest their capital after quite a strong run up in equity markets. They feel more comfortable in cash or ‘idle capital’.
The reality now though is that such ‘idle capital’ has become very expensive to hold with interest rates plummeting and central banks intent on maintaining positive inflation expectations. This is not a new message for us and most clients do ‘get it’, the problem is that they tend not to act on it. The fear of another collapse looms too large.
However, look at it from another perspective, a Japanese perspective. Staying 100% in cash for the last couple of decades was actually the right thing to dountil suddenly it wasn’t. Once the Bank of Japan changed policy the impact was dramatic - the Japanese Real Estate Investment Trust trebled in a year! Japanese savers don’t feel as good anymore.
We are not saying that we will see the same dramatic impact in Europe but it is a salutary tale for Irish investors who’s capital resides in expensive safe havens or ‘idle capital’. Investors should hold cash as part of their assets, liquidity is very valuable. However, our experience is that too many clients have too much of their assets in cash.
Yes markets have performed well of late and could pullback but look at the big picture. Historic events are happening all around us and while some of the repercussions are unknowable, the diminishing purchasing power of cash is pretty much nailed on.
Looking at equity markets, it is important to remember that bull markets are typically defined by three stages. The first is when forward looking people begin to believe things are improving, the second is when most investors realise that improvement is underway and the third is when everyone’s sure things will improve forever.
I ask you to apply this stage analysis to the current market. When I think about it, stage 1 is definitely over; you certainly couldn’t argue that the case for economic improvement is largely unrecognised. But what about stage 2, think about the conversations you are having with friends and colleagues. Is it widely recognised that improvement is underway or do you encounter a lot of skepticism? Well we encounter a lot of skepticism and this is not just an Irish phenomenon â€" global capital remains invested very conservatively. So it is probably fair to say we are at best half way through stage 2. So when we see markets breaking to new highs on skepticism we should view this favourably, not as another reason to stay in ‘idle capital’.
To repeat myself, the current mood of investor caution remains entirely understandable given the traumatic collapse we experienced. We will definitely have uncomfortable market corrections along the way; there is nothing we can do about this. What we can do, however, is build diversified portfolios for our clients that protect their purchasing power and offer a smoother journey. This is our job and we would be more than happy to discuss our solutions with you.
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NCB Stockbrokers Limited is regulated by the Central Bank of Ireland. Member of the Irish Stock Exchange. Member of the London Stock Exchange. Registered No: 223158. NCB Corporate Finance Limited is regulated by the Central Bank of Ireland. Registered No: 222489
Market Summary â€" Closing Levels & 1 Day Movements
S&P 500
1632.7
0.4
Dow Jones Indus.
15105.1
0.3
Nikkei 225
14285.7
-0.7
Hang Seng
23244.4
-0.3
ISEQ Overall
3961.6
-0.2
FTSE 100
6583.5
0.1
DJ EURO STOXX 50
2784.6
-0.5
EUR / GBP
0.8466
EUR / USD
1.3169
§Market Overview
§Looking across the Global Macro vista â€" We see nothing of note apart from a rate cut in South Korea from 275 to 250. Chinese inflation headed a little higher in April on the back of expensive vegetables.
§Today:
§MPC meeting today and we expect a maintained asset purchase policy.
§Jobless claims in the US
§DCC â€" Meeting the neighbours
§Kingspanâ€" IMS: Slow start to the year but outlook encouraging
§CRH â€" Winter weather weighs on trading
§Irish Financialsâ€" Central Bank announces pilot scheme for multi-debt restructuring
§Economic Update â€" Moody’s sticks to the same line on Ireland
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NCB Stockbrokers Limited is regulated by the Central Bank of Ireland. Member of the Irish Stock Exchange. Member of the London Stock Exchange. Registered No: 223158. NCB Corporate Finance Limited is regulated by the Central Bank of Ireland. Registered No: 222489
Market Summary â€" Closing Levels & 1 Day Movements
S&P 500
1626.0
0.5
Dow Jones Indus.
15056.2
0.6
Nikkei 225
14180.2
0.7
Hang Seng
23047.1
0.8
ISEQ Overall
3980.1
-0.4
FTSE 100
6557.3
0.1
DJ EURO STOXX 50
2769.1
-0.1
EUR / GBP
0.8455
EUR / USD
1.3089
§Market Overview
§Most equity markets tested fresh highs yesterday in the absence of any unsettling economic releases and a further demonstration, this time by Australia (with a 25bp reduction in rates to 2.75%) that monetary policy around the globe remains accommodative.
§UK Retail Sales data this morning looks grim at first glance with a 2.2% contraction for April compared to expectations of 1.9% growth. However, as with most retail sales numbers in the British climate the year-on-year comparables always need to be borne in mind, and in this case the timing of Easter as well. Underlying normalised sales are unlikely to be anything like as bad, and today’s trading update from Next gives weight to that.
§German Factory Orders for March increased by 2.2% month-on-month, well ahead of the expected 0.5% increase, and will be followed up Industrial Production data later this morning â€" the market looking for a 0.1% contraction month-on-month but now may be braced for an upward surprise. US data this afternoon in the form of official housing starts sees expectations of 175,000 for April.
§Bond yields did very little, though the market will be encouraged by Portugal’s return to the 10-year sovereign market for the first time since bailout which saw €3bn of paper issued at 5.65% and more than 3x over subscribed.
§CRH â€" IMS: winter weather weighs on trading; full year guidance intact
§CRH â€" European peers report similar trends to CRH
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NCB Stockbrokers Limited is regulated by the Central Bank of Ireland. Member of the Irish Stock Exchange. Member of the London Stock Exchange. Registered No: 223158. NCB Corporate Finance Limited is regulated by the Central Bank of Ireland. Registered No: 222489
Market Summary â€" Closing Levels & 1 Day Movements
S&P 500
1617.5
0.2
Dow Jones Indus.
14968.9
0.0
Nikkei 225
13694.0
3.6
Hang Seng
22915.1
0.6
ISEQ Overall
3940.8
1.0
FTSE 100
6521.5
0.3
DJ EURO STOXX 50
2750.5
0.4
EUR / GBP
0.8416
EUR / USD
1.3080
§Market Overview
§In the UK on Friday we saw the services PMI release at 52.9 well above expectations and the manufacturing PMI also above forecasts, albeit at 49.8 still below the psychologically important 50 level.
§This week sees the release of the Industrial Production data as well as the MPC meeting - the stronger than expected GDP numbers means the chances of more QE are effectively zero.
§In the US we saw a stronger than expected payroll announcement but more significantly a substantial upward revision to the two preceding months of February and March. At the rate of job creation seen over the past six months, it will take at least another fifteen months before unemployment approaches the 6.5% rate which the Fed has indicated as its interim target. The data illustrate little sign yet of any shedding of public sector headcount as might be expected from the sequestration measures â€" this will be watched closely by markets in the next three months.
§In Europe there was some disappointing news on economic growth forecasts, but offset by the comments from Mr Draghi that he stood by with further monetary stimulus if needed. Senior bureaucrats in Brussels also noted that some countries would be extended additional time to reduce budget deficits, in a clear sign (albeit not voiced by a German) that Germany is softening its line on austerity.
§Bond markets dropped sharply late on Friday, with 10yr down around 1% and 30yr around 2.5%.
§Equities were strong, with Wall Street above 1600 on the S&P and the Dow fleetingly above 15,000. Yesterday in a thin day’s trading the S&P gained fractionally, whilst the Dow slipped slightly. The UK rallied on Friday after the US employment news and has pushed on modestly this morning. In Japan overnight the market was very buoyant, gaining about 3.5% - all sectors apart from telcos joined the party.
§Aer Lingusâ€" April traffic figures
§CRH â€" Lafarge Q1 volumes decline following harsh winter weather; outlook positive
§Bank of Ireland- Stress tests set to go ahead in Q3
§Irish Financials â€" NIM continues to expand at AIB
§Economic Updateâ€" Industrial Production up 2.5% in Q1
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NCB Stockbrokers Limited is regulated by the Central Bank of Ireland. Member of the Irish Stock Exchange. Member of the London Stock Exchange. Registered No: 223158. NCB Corporate Finance Limited is regulated by the Central Bank of Ireland. Registered No: 222489
Market Summary â€" Closing Levels & 1 Day Movements
S&P 500
1597.6
0.9
Dow Jones Indus.
14831.6
0.9
Nikkei 225
13694.0
-0.8
Hang Seng
22668.3
0.1
ISEQ Overall
3890.3
0.0
FTSE 100
6460.7
0.0
DJ EURO STOXX 50
2718.9
0.0
EUR / GBP
0.8437
EUR / USD
1.3106
§Market Overview
§Yesterday’s main event was the meeting of the ECB, at which the benchmark interest rate was, as expected, cut from 0.75% to 0.5%. The marginal lending facility rate was also cut from 1.5% to 1% and the deposit rate maintained at 0%. The cuts came against a background of low inflation (reported earlier in the week) and another round of weak â€" though slightly better than expected â€" PMIs (reported yesterday). With the rate cuts expected, attention was focused on the accompanying commentary which made it clear the option of further easing remains open. The ECB is also working on a plan to improve funding to SME’s, recognising that the transmission mechanism is currently not working very well. However the announcement was detail-free and more information is expected to emerge over the next few weeks. In response to the ECBs actions and words the euro weakened against the dollar, German bunds strengthened, and equity markets were little moved.
§In the US yesterday, the main news was the weekly jobless data, which came in better than expected at 324k; the consensus forecast was 345k. The main equity indices moved higher (the S&P 500 and Dow Jones rising nearly 1%) with some strong moves in large cap tech. However Linked In fell 10% after hours following poor revenue guidance.
§Most Asian markets were stronger overnight (the Nikkei being an exception) led by China. The Shanghai index rose 1.4%, helped by more bullish forecast for power consumption, a useful indicator of economic activity. The Philippines rose 1.6% as the country’s credit rating was increased to investment grade. In India the central bank cut interest rates from 7.5% to 7.25%, suggesting it is more comfortable about the outlook for inflation, which has been stubbornly high.
§This morning the UK equity market has opened quietly, ahead of the Services PMI data release at 9.30. It is expected to be unchanged at 52.4. Later today there is a raft of US data on employment, factory output and services. The key numbers are the non farm payrolls, expected to be 145k after last month’s unexpectedly weak 88k, and the Non-Manufacturing PMI. That is expected to decline slightly from 54.4 to 54, still indicating expansion.
§Smurfit Kappaâ€" Q1 results in line and market environment remains stable
§CRH â€" Vulcan Materials Q1: outlook positive for U.S. construction market as recovery continues
§Economic Update â€" NCB Services PMI April 2013
§Irish Financials â€" Read through from RBS" Irish unit, Ulster Bank
§Irish Financialsâ€"ECB rate cut to weigh on Irish banks’ margins
§Economic Updateâ€" Exchequer deficit of €6.1bn recorded in year to April
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NCB Stockbrokers Limited is regulated by the Central Bank of Ireland. Member of the Irish Stock Exchange. Member of the London Stock Exchange. Registered No: 223158. NCB Corporate Finance Limited is regulated by the Central Bank of Ireland. Registered No: 222489
§With most of Europe closed for May Day yesterday, the main points of interest came out of the US. In addition to the FOMC decision, there were a couple of broadly negative data points earlier in the session. For the second month in a row, the ADP Non-Farm Employment Change, which is seen as an indicator for the official figure due later this week, substantially missed forecasts when it printed at 119k against an estimate if 154k. This follows the first three months of the year when employment numbers rose by around 200k. Overall, this probably isn’t particularly serious since if we look back at the historic data, it’s not uncommon for forecasts to be too high at this time of the year as hiring is curtailed going into the summer but economists are too myopic to account for this phenomenon.
§Nevertheless, this data together with a softer than expected ISM manufacturing PMI was no doubt part of the justification for last night’s FOMC statement. The meeting itself was fairly uneventful with the rate maintained at 0.25% and the asset purchasing maintained $85bn per month. The statement however, had a dovish tone. The committee noted that the unemployment remains elevated, fiscal policy is restraining economic growth and inflation is below target. Later in a press conference, it was stated that the committee is prepared to change the pace of QE to suit the changing economic conditions. The implication therefore is that there could well be a further increase in the asset purchasing if the economy softens further. So it seems that for now we will remain in a market where bad news is good news.
§Today, there are a number economic releases with the main ones being, UK construction PMI, the ECB monthly meeting, the conclusion of which is expected to the first cut in the minimum bid rate since July last year and later today there will be the weekly Non-Farm Payrolls.
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NCB Stockbrokers Limited is regulated by the Central Bank of Ireland. Member of the Irish Stock Exchange. Member of the London Stock Exchange. Registered No: 223158. NCB Corporate Finance Limited is regulated by the Central Bank of Ireland. Registered No: 222489
§With most of Europe closed for May Day yesterday, the main points of interest came out of the US. In addition to the FOMC decision, there were a couple of broadly negative data points earlier in the session. For the second month in a row, the ADP Non-Farm Employment Change, which is seen as an indicator for the official figure due later this week, substantially missed forecasts when it printed at 119k against an estimate if 154k. This follows the first three months of the year when employment numbers rose by around 200k. Overall, this probably isn’t particularly serious since if we look back at the historic data, it’s not uncommon for forecasts to be too high at this time of the year as hiring is curtailed going into the summer but economists are too myopic to account for this phenomenon.
§Nevertheless, this data together with a softer than expected ISM manufacturing PMI was no doubt part of the justification for last night’s FOMC statement. The meeting itself was fairly uneventful with the rate maintained at 0.25% and the asset purchasing maintained $85bn per month. The statement however, had a dovish tone. The committee noted that the unemployment remains elevated, fiscal policy is restraining economic growth and inflation is below target. Later in a press conference, it was stated that the committee is prepared to change the pace of QE to suit the changing economic conditions. The implication therefore is that there could well be a further increase in the asset purchasing if the economy softens further. So it seems that for now we will remain in a market where bad news is good news.
§Today, there are a number economic releases with the main ones being, UK construction PMI, the ECB monthly meeting, the conclusion of which is expected to the first cut in the minimum bid rate since July last year and later today there will be the weekly Non-Farm Payrolls.
We are unable to guarantee the security of any data outside our own computer systems should you wish to use this mode of communication. This message and any files transmitted with it are confidential and may also be privileged. It is intended only for the use of the persons named above. If you have received this email message in error, please notify us immediately and return the original message to us.
NCB Stockbrokers Limited is regulated by the Central Bank of Ireland. Member of the Irish Stock Exchange. Member of the London Stock Exchange. Registered No: 223158. NCB Corporate Finance Limited is regulated by the Central Bank of Ireland. Registered No: 222489
Market Summary â€" Closing Levels & 1 Day Movements
S&P 500
1597.6
0.2
Dow Jones Indus.
14839.8
0.1
Nikkei 225
13860.9
-0.4
Hang Seng
22737.0
0.7
ISEQ Overall
3858.2
0.4
FTSE 100
6430.1
0.4
DJ EURO STOXX 50
2712.0
0.0
EUR / GBP
0.8465
EUR / USD
1.3191
§Market Overview
§Recent data from Europe and the US suggests easier monetary policy on both sides of the Atlantic. It appears likely that a rate cut could occur in Europe and the US’ QE programme could continue for longer than was previously expected (there has been discussion of a tapering of QE from late summer).
Euro area inflation down to 1.2% y/y in April
§Eurostat’s “flash†HICP estimate of inflation fell 0.5% to 1.2% y/y in April; consensus was 1.6% y/y. Euro area inflation has reached its lowest level since February 2010.
§(Official) Euro area inflation in April is likely to be a low before accelerating in the coming two months, probably due to positive energy basis effects.
Euro area unemployment rate rising steadily, further deterioration of labour market expected
§The euro area unemployment rate rose 0.1% to 12.1% in March, reaching a new all-time high since the series started in 1993. Consequently, the number of unemployed in the euro area also reached a new high of 19.21mn. The pace of deterioration is likely to remain steady and the unemployment rate could increase to 12.3% in Q2 13.
§As a result of ongoing fiscal consolidation, ongoing labour market reforms and a more-fragile-than-expected economic recovery, the labour market dynamic is unlikely to improve in the euro area in the short term.
Weak Chicago PMI yesterday
§There is concern over the recent weakness in US data, with the Chicago PMI falling back into negative territory yesterday and it has caused downward revisions to expectations for today’s ISM manufacturing reading. Consumer confidence and house prices in the US were firm yesterday, posting healthy gains on the month.
§Please be aware that most European markets are closed today for May Day.
§CRH â€" Martin Marietta: Q1 volumes hit by difficult comps; pricing and outlook positive
§Economic Update- NCB Ireland Manufacturing PMI April 2013
§Economic Update- Irish government publishes Stability Programme Update
§Irish Financials â€" Mortgage approvals data distorted by timing effects
§Irish Financials â€" Latest CBI data show heavy lifting on debt paydown continues
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NCB Insights - ‘The Importance of (not) Being Idle’ - 09.05.13 Wealth Management Publication
OUR TEAM
Our Team
These days wealthier private clients demand an altogether more sophisticated and subtle response from their investment advisors.
Service levels and standards that might have sufficed ten years ago are just not good enough now. We believe it is simply impossible to consistently service this type of customer without staff of the highest quality.
In NCB Wealth Management, we work extremely hard at finding and keeping the right people. Nothing in our business model is more important than this.
All our advisors are highly qualified - that's a pre-requisite. However, being well qualified is not enough. Above all, they must possess high levels of integrity and loyalty - the absolutely essential attributes for longer term success in this business. Our people are not simply "product pushers" or order takers. That's not our business. The NCB team are experienced, multi-disciplined and flexible. They have the capacity to advise on a wide range of issues and products.
We place a massive emphasis on teamwork and believe that this - though not always visible to the client - plays a vital part in maintaining a consistently strong customer proposition. We believe that our teamwork is a genuine competitive advantage. We have a very low staff turnover and remuneration packages are largely based on the performance of the team.
NCB Wealth Management offer a wide range of services to private clients. Our strong preference is to create bespoke solutions. Very often, this will involve a number of different specialists working together on a client account under the guidance of the account manager.
Overview - Clients/Services
Portfolio Management
Portfolio Management
Our Bespoke Portfolio Management Services provide tailored solutions (advisory and discretionary) designed to meet the specific medium to long-term investment requirements of individual clients.
Fundamentally, our team operates on the basic principle that no two investors needs are the same. Our experienced fund managers will tailor the design of each portfolio to meet the specific requirements of each client. The primary goal is to ensure that the overall asset mix is appropriate. Portfolios can then be managed in a flexible way and clients can chose to be as active or passive as they wish.
Investment Approach
NCB has significant internal resources when it comes to analysing investment markets and asset classes.
Furthermore, on the bond/cash side, we have our own in house team of economists who review domestic and international prospects, with a market-focused bias.
Our award winning strategists have an excellent and proven track record in analysing investment markets from a top-down approach.
Having agreed an overall asset allocation or mix, we then get on with the business of constructing the portfolios. We believe that diversification is extremely important in reducing volatility and controlling risk and we like our portfolios to be as diversified as possible both in terms of asset class and geography. We use collective investment vehicles as well as holding assets directly. Such vehicles not only help with diversification but they also allow us to bring the very best global specialist expertise to bear for our clients.
Portfolio Management Process
The way we manage your portfolio is key to the ongoing success in meeting your objectives. NCB Wealth Management has developed a consistent and robust Wealth Management process, which underpins everything we do.
For a tour of our Wealth Management / Portfolio Management Process, please click here.
The Clients that may Benefit
Subject to appropriate professional advice, the Portfolio Management Service is most suitable for individuals, their families or trusts with invest-able assets in excess of €250,000 in cash or qualifying investments.
Our tailored Portfolio Management service suits those that require a sound, innovative and refreshing approach to the management of their investments. While they are busy with their working lives they have the confidence of knowing their investments are in safe hands.
Stockbroking
Good advice is hard to come by
Constantly moving markets provide great opportunities for active, enthusiastic investors. NCB Wealth Management offers a very specialized service for serious investors with a shorter-term trading bent.
In addition to the more formal, medium to long-term investment philosophy eschewed by our Portfolio Management service,
this trading service is much more focused on short to medium term opportunities that arise in both domestic and international markets.
We are strong advocates that good advice is critical to good decision-making and we know it is hard to come by. Our team also generate relevant trading ideas on an ongoing basis and work very closely with our investors right through the process.
Active or on the sidelines, best to be kept informed
This is a highly interactive service. There is ongoing communication between you and our team of traders. You will receive swift communications on company and market news along with well thought out trading ideas. We are consistently appraising new ideas, which are well thought out and relevant to our clients. The service will also give you access to more sophisticated instruments such as Contracts for Difference, Traded Options, and Covered Warrants.
Features of our Advisory Trading Service
Views on company announcements and market news
Access to morning notes by e-mail.
Access to technical analysis and charts.
Private Equity
Private Equity
By virtue of our close relationships with NCB Corporate Finance and NCB Ventures, we are uniquely positioned to be able to offer our clients private equity opportunities when they arise.
Private Equity is becoming an increasingly important part of private investors' portfolios and this trend is likely to continue. Our approach is to support strong management teams in sectors which we believe will outperform on a medium term horizon.
NCB clients invested c.€150m in funding Airtricity through its stages of development before its €1.5bn disposal to Scottish & Southern Energy in 2008.
Our European private equity partners, CapVest, were awarded the "Large deal of the year" at the 2008 European Private Equity Awards for their sale of the FoodVest Group to Lion Capital for in excess of €1bn, returning a multiple of funds invested to investors.
Recent private equity fundraisings carried out by NCB are shown below.
These private equity initiatives illustrate our success in combining the skills and capabilities of our divisions in order to provide real value to the private investor. They also demonstrate our ability to select and deliver unusual investment opportunities in a refreshing and innovative way. It you are an existing Wealth Management client and have an interest in this type of offering, please contact your account manager for details of upcoming private equity offerings.
Retirement Planning
Retirement Planning With the increasing pressure on state pension benefits and an ever-ageing population, we will have to rely more on our personal savings when we retire than previous generations.
Rather than suffer a significant drop in income, strategic planning for your retirement can help offset any decrease. Investing in a pension plan currently offers the most tax effective means of investing and providing for your retirement. NCB can provide you with a unique way of investing in your pension whilst allowing you to continue to enjoy the tax benefits that apply to these contributions.
In recent times investors have been seeking greater control over the investment decisions that directly impact on their retirement fund and, consequently, Self-Directed investment has grown in popularity.
Self-Directed allows you to control your funds investment decisions before and after you retire and allows you to plan for your unique personal circumstances. You can devise your own asset allocation strategy along with NCB, which can assist in this process by providing information and investment advice. You can invest in a broad range of equities, bonds, property and deposit-based investments.
This method of investment is growing in popularity and has a number of key benefits. These are as follows:
Greater control over your investments whilst still benefiting from a retirement structure. Your funds will continue to grow on a tax-free basis, prior to taking any benefits.
NCB Booklet
The big question - why invest in a pension ?
An individual investment manager is appointed to advise and liaise with you on stock selection and asset allocation decisions
Quarterly valuations of your investment fund together with regular updates on NCB's investment strategy.
Apart from direct equity investments, you will be able to choose from a range of complementary investments such as bonds, cash and property.
A simple and transparent charging structure.
As an independent financial adviser we are also in a position to provide professional and impartial advice on the wide range of traditional pension funds that are available on the domestic market. Although you receive a premium service, dealing through NCB does not cost more than dealing with an investment company directly.
Collective Investment Vehicles
Collective investment vehicles, such as those offered by many life assurance and fund management companies as well as investment and unit trusts, are one of easiest and most efficient ways to access the stock market.
An investment fund is simply a pool of investors' money, in which each individual investor is allocated units. These units represent the share of the pool owned by the investor. Quite simply this enables the individual investor to invest in a much wider range of investments and to employ a professional investment manager to manage their money.
Investment fund managers invest the money coming into their funds from private and institutional investors. They use it to buy shares in domestic and international companies, government and corporate bonds, and quite often property and cash type investments. Exactly what the managers decide to buy depends on the investment criteria of the specific investment fund (there is a wide range on offer) and their view of the best opportunities. With the muscle of millions of euros under their control, they have the advantage of being able to negotiate keen prices and competitive levels of commission. NCB has access to a broad range of international investment managers and fund choices to complement and build your investment portfolio.
Structured Product Solutions
Structured Product Solutions
NCB Wealth Management, through our close links with other specialist investment providers, can offer our clients structured product solutions that compare favourably, both in innovation and cost, to those that are issued to the general public by retail orientated banks.
Structured investment products are usually of a fixed term nature (e.g. 3-7 years), provide a capital guarantee at maturity (e.g. 100%) and pay a return based on the performance of a chosen asset or asset class (e.g. equity indices).
We have the ability to individually manufacture or source products linked to equities, bonds, property, hedge funds, commodities, currencies, and multi-asset indices / baskets.
For example, if you have a view that commodities will perform strongly over the next 5 years, but wish to reduce your downside risk by using a capital guarantee, then NCB can help you structure a suitable solution.
Typically we can tailor a structured product for amounts in excess of €1m and the types of client that have used this service include credit unions, charities, pension funds and high net worth individuals.
Many of these clients initially approached us because they had a particular need or objective that was not being addressed by their existing financial relationship(s), or they felt that they could use the monetary size of their proposed investment to generate greater buying power (i.e. lower fees). For example, typical retail oriented tracker bonds can contain charges well in excess of 5% which may be acceptable if you are investing €5,000 but not if you are investing €1m.
So if you have a sizeable investment sum and are looking for an individually tailored structured solution please contact Nigel Poynton.
Property Investments
Property Investments
We provide property investment advice to our clients as part of our integrated wealth management offering. The combined expertise of our team across NCB Wealth Management and NCB Corporate Finance provides a proven track record in structuring/executing deals and delivering appropriate investment opportunities to clients. At the core of our strategy is the ability to select and manage "asset managers" who have the appropriate on-the-ground expertise in the particular property market or specialism.
Thanks to our recent track record and the NCB franchise, our team has access to a wide range of property investment opportunities both domestically and internationally. Investment opportunities are originated from a range of geographies, with a particular bias for Ireland, the UK and Europe.
We can offer clients a number of options to access property investment opportunities. For investors of sufficient size, we can identify bespoke offerings or co-investment opportunities. We can also structure syndicate investment opportunities to allow clients pool their resources and gain exposure to larger transactions as part of their portfolio. Clients benefit from the cost efficiencies and expertise of the very best in the business.
Please feel free to contact any of our team members below to discuss your own property investment requirements on 01 611 5611.
Examples of Recent Property backed Investments include:
UK Commercial Property
Over the last few years, we have invested over €100m in property in the UK on behalf of clients. These funds primarily invested in commercial property in London have been carried out in conjunction with Grainmarket Asset Management ("the Manager"). The Manager's focus is on active management of commercial property, primarily office, in the London area. The Manager has acquired a portfolio of multi-let buildings with upgrading, refurbishment and development opportunities. These properties also offer significant opportunities for the Manager to play a more active role in rent reviews and tenant management.
NCB takes an active role with these funds, liaising with investors, taking positions on the board, and providing ongoing financial and corporate finance advice.
Healthcare Homes in the UK
NCB clients invested c.€20m in Canford Healthcare, a company with a focused strategy to acquire and develop a group (circa 10) of quality care homes and to successfully operate and manage residential and nursing care services in these homes.
The investment proposition centers on the opportunity to participate in the acquisition and development of Care Homes in the South of England by an operator with a proven track record of increasing fees, occupancy levels and profits. Canford Healthcare represents a 7-year, asset backed investment in a sector supported by strong demographics providing annual income and capital growth to investors.
Fact Find
The starting point in our process is to create a profile of you, covering your personal details, current financial situation and family circumstances.
This isn't a faceless questionnaire. It's a simple discussion where we do more listening than talking. We work on the principle that the more detail we get at this stage, the better our understanding of your needs which will enable us to stay relevant and deliver genuine added value going forward.
Investment Strategy
Investment Strategy
A clear understanding of your investment objectives and risk tolerance is at the core of our investment process.
How could we possibly make responsible and suitable investment recommendations for anyone without fully understanding the context? This is probably the most unglamorous stage of the process, but it may also be the most important. We aim to generate a clear statement of your investment objectives which in turn leads to an equally clear definition of the asset allocation/investment strategy to be pursued. At this stage, we also agree the broad parameters by which our relationship will be governed (i.e. restrictions, limitations, service level, costs). We educate you regarding the tradeoffs between risk and reward, the investment environment and the forces that may impact on your investments.
Asset Allocation
Asset Allocation
This stage of the process is all about getting the balance right.
We also spend time considering the most appropriate levels of asset classes (equities, bonds, property, cash, etc.) and the level of diversification for each individual investor. These key issues are central to meeting the individual's investment objectives. Allocating differing weighting and types of assets to individual clients to tailor for their needs is a fundamental process of NCB's strategy. We have our finger on the pulse and have a well-developed understanding of the returns and risks related to investing in different asset classes.
Structuring Implementation
Structuring Implementation
Once the investment strategy and asset allocation have been agreed, we then need to consider the account structure that best suits you.
We offer a number of account options and service levels which can facilitate the varying requirements of each client.
1) The Advisory structure requires you to decide on which assets to hold; we advise but ultimately, you decide.
2) The Discretionary structure, is where we clearly agree and document all the "ground rules" and investment parameters in advance. Following that, we simply get on with the job of managing the portfolio. This, of course, does not mean that you cannot have an ongoing input to decisions (of course you can, its your money and we never forget that). However, this structure does ensure that your portfolio continues to be actively managed (in line with the pre-agreed mandate) even though you might be busy, travelling or on holiday.
The discretionary option is also very suitable for inexperienced investors who have neither the confidence nor knowledge to get involved in day to day decision making. An experienced and qualified professional will take responsibility for all of that. We also offer accounts set up solely for trading and for execution purposes with little or no advisory element. Whichever account structure best suits and is chosen by you, we have a refreshing approach to implementation, compliance and regulation that makes account set up quick, easy and relatively pain free.
Communication
Communication
Communication is a hugely important aspect of the client-wealth manager relationship.
So how exactly do we communicate? Clearly with such a range of different clients, there is no "one size fits all" communication approach. Some clients want lots of communication.
Some want very little. Our job is to make judgements on what level of communication you need and how best to deliver it to you. This communication can take the form of face-to-face meetings, phone calls, emails etc. We also try to send any relevant research work and information to clients.
Our ongoing review process will hopefully ensure that we always stay on the same wavelength
Review and Monitoring
Review and Monitoring
If there's one thing we feel is vital to ensure a positive and enduring relationship, it is regular face-to-face meetings.
We aim to conduct a thorough review with you where we review all aspects of the portfolio performance versus objectives at least once a year. We review all elements of our service provision from the portfolio to the advice and communication to the administration and reporting. Most importantly, we want to ensure that each client is satisfied with every aspect of our service and take on board your thoughts on how we can improve our service to you. We are always open to constructive criticism.
Following this regular review, all it may be determined that we need to refine our investment strategy for you going forward. This is determined through a reassessment of your future income and capital needs, identifying changes in your risk tolerance, investment preferences or indeed market conditions.
Archive
Advisor to Airtricity
Irish placement agent
Advisor to Canford
Advisor to One51
Advisor to PGF on
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