Investment return expectations lowered

Market trends may suggest that we are late in the cycle – with a bull start date circa March 2009, that is over 90+ months.

Our view is that if you are looking for capital security, then you invest into deposits or Government savings.

However, if willing to take a medium to longer term view (5 to 7 years plus) and accept risk, then our conversation with clients centres around the key asset classes and how risk can be reduced.

The attached graphic from Standard Life is their current predicted long term returns for the next 10 years.

To put this in context - between 2005 to 2015

Asset class         UK % per annum       US % per annum

Equities                            4.1                     4.9

Government                   4.6

TIPS                                                            2.9

Gilts                                   3.7

Corporate Bonds            2.5                    4.2

Index linked gilts           3.5

Cash                                 -0.7                  -0.7

Source: Centre for Research into Security Prices & Barclays Research

TIPS = Treasury Inflation Protected Securities

At Nelson Life we use three elements to establish your  risk profile:

Step 1.  Risk capacity and use of information gathered in Fact-Find/meetings

Step 2.  Risk preference – risk profile questionnaire (psychometric testing)

Step 3.  Customer documents – structured discussion and support material from provider

Why choose us

Nelson Life have access to over 18 trusted providers.

We are professionally qualified to the highest level and have been advising for 20+ years

Want to know more? We are available to discuss your options, and we look forward to hearing from you.

Our job is to help you choose a product and structure that will help you meet your goals.

telephone | 091441188 and/or email | office@nelsonlife.ie

RETIREMENT & PENSIONS |  INVESTMENTS | FINANCIAL PLANNING | LIFE INSURANCE

Nelson Life Limited trading as Nelson Life is regulated by the Central Bank of Ireland.

WARNING: Past performance is not a reliable guide to future performance. WARNING: The value of your investment may go down as well as up. WARNING: You may lose some or all of the money you invest. WARNING: These funds may be affected by changes in currency exchange rates. WARNING: If you invest into this product you will have access until you retire (Pension Products). WARNING: The above content does not constitute investment advice, as it does not take into account the investment objectives, knowledge and experience of financial situation of any particular person. Prospective investors are advised to make their own assessment of the information contained herein and to obtain professional advice suitable to their own individual circumstances. WARNING: The information contained in this document is based on our understanding of current tax legislation and the current Revenue Commissioners interpretation thereof and is subject to change including retrospectively without notice. This is intended as a general guide only and is not a substitute for professional tax, legal and investment advice.