ETFX DAXglobal Gold Mining ETF

Please read our complimentary research on what we believe could offer a potential 20% return this year, which is suitable for investors with a high risk tolerance. The price of gold bullion and gold mining shares has diverged to such an extent that we feel the gold miners are a ‘buy’ for the following reasons:
1) Gold miners are cheap trading at 20x earnings, a level not seen since the 2008 financial crisis.
2) Gold miners are oversold against the wider market, having fallen 11.75% since October compared with the S&P 500’s 28.56% rise.
3) Gold miners are low against the price of gold bullion.
4) Technically, the shares are at the lower end of a falling wedge, a bullish pattern.
We are recommending the purchase of the ETFX DAXglobal Gold Mining Fund, a low cost ETF that provides diversified exposure to the theme.

Market Commentary March 2012

Read this month’s Market Commentary newsletter which contains our view on the stock market based upon fundamental and technical analysis along with some recommended investments for the current market.
In the newsletter, we explain why we have reverted to being cautiously bullish on the stock market based on seasonal indicators along with the potential arrival of QE3.
We also highlight our preferred investments at this time including Carillion (6.8x P/E & 6% yield), Royal Dutch Shell B (8.4x P/E & 4.6% yield) and gold.

Provident Financial 7% 04/10/2017 – Buy

Provident Financial Plc is issuing a new 5 1/2 year sterling bond with a 7% coupon, which will commence trading on the 4th of April, complimentary research attached.
Rated BBB by Fitch, we feel this bond looks good value against the 1.1% offered by the benchmark Treasury gilt and the ~3% offered by the average corporate bonds with the same maturity.
With the general consensus forecasting a long period of low interest rates, the issue provides added attraction. The relatively short maturity of the bond will also mean less volatility in secondary market prices. And the senior ranking of the bond combined with the steady course steered by Provident Financial’s management through the credit crunch suggests that the new bond offers a good risk/return ratio.
The Provident Financial 7% April 2020 is priced at 105.7 – a 6.1% yield to maturity. Considering the 7% 4th October 2017 bond is shorter, we believe the bond should trade at a premium to par upon admittance to trading in the secondary market.

Market Commentary February 2012

Read this month’s Market Commentary newsletter. This contains our view on the stock market based upon fundamental and technical analysis along with some recommended investments for the current market.
In the newsletter, we explain why we have turned bearish on the stock market. However, on a bottom up level, there are individual stocks we would buy at current levels, including Chesnara (9.9% yield), Tesco (serious recovery play) and RSA (capital growth and a 9% dividend yield).

iShares Emerging Markets Local Gov Bond ETF

Emerging market bonds have been one of the best-performing asset classes over the last few years and for good reason. They offered exposure to high yields, strong underlying economies and a healthy diversification away from the Western debt crisis.
However, we believe this story has further to run. Inflows to the asset class remain strong and valuations are still attractive on a relative basis. Although outright yields are low with the benchmark 10 year gilt offering just 2.2%, emerging market yields at 6.2% still look attractive.
Please find attached complimentary research on our preferred method of gaining access to this interesting asset class – the iShares Emerging Markets Local Gov Bond ETF. This exchange traded fund trades on the London Stock Exchange in sterling, has a total expense ratio of just 0.5% and currently boasts an index Gross Redemption Yield of 6.7%, with an index maturity of 7.5 years.
With 82% of the fund’s bonds being investment grade, we recommend the holding to medium-term investors seeking fixed interest with a medium attitude to risk

Market Commentary January 2012

Read our new Market Commentary newsletter. This contains our view on the stock market based upon fundamental and technical analysis along with some recommended investments for the current market.

Dogs of the Dow 2012

Read this year’s stock selection from the Dogs of the Dow, a theory that uses yield and price to determine stock selection.
The single stock selection, RSA Insurance Group Plc, turns out to be the same as last year. Despite the fact that the performance has not lived up to expectations (-16% compared to -5.6% in the FTSE 100, though 9.04p in dividends reduces the loss to -6.9%), we believe the stock warrants further attention and holders should remain invested.
For those who did not invest last year, the company is rated as a “Buy” by most analysts (Citigroup has a 145p price target, indicating 34.9% potential upside not including the 8.8% projected dividend yield). Despite its exposure to bad weather and other global disasters, RSA had £1.3bn surplus capital which represents twice its regulatory requirement and 89% of its investment portfolio is invested in high-quality bonds, with less than 1% in Eurozone Government bonds.

Market Commentary December 2011

Read our new Market Commentary newsletter. This contains our view on the stock market based upon fundamental and technical analysis along with some recommended investments for the current market.

Reckitt Benckiser – Buy

Please read our recommendation on Reckitt Benckiser, the world’s largest producer of household products which include Vanish, Harpic, Cillit Bang, Air Wick and Dettol amongst others.
This is a defensive stock that we feel is a core holding during the current economic environment. Trading on a prospective 13x P/E multiple, at the bottom end of its ten-year historical P/E range, we believe the current share price of 3191p represents an attractive entry point. Nomura has a 3900p price target. A prospective dividend yield of 3.9% is also an attractive proposition

STM Gibraltar Personal Pension

A pension is one of the most effective ways to save money for your retirement, because you may be eligible for tax relief on your contributions.

With this in mind, Gibraltar Asset Management is pleased to offer, in conjunction with STM Fidecs, the STM Gibraltar Personal Pension. This unique package, designed for Gibraltar earners, allows the pension holder to take control of their pension pot by investing in stocks and shares, whilst reaping the tax benefits of a Gibraltar approved pension scheme. It’s major benefits include:

* Tax relief on up to 20% of your annual earnings (Allowance Based System)*
* Income and capital gains, tax free*
* Withdraw your pension from age 50-75*
* Withdraw 100% lump sum on retirement*
* Open to Non-Gibraltar Residents (must be Gibraltar earners)*

Employees on the Gross Income Based System can benefit from employer contributions not being treated as a Benefit in Kind and the discipline of saving for your retirement.