They are typically nimble, entrepreneurial, and able to react quickly to change. In our special feature we look at two exceptional smaller companies managers and also suggest some shares to consider. The election result cements our view that interest rates will remain at rock-bottom for the foreseeable future. In this environment generating an attractive income from savings and investments is a challenge.
Traditional sources have all but evaporated. Cash deposit accounts offer security, but yield little in the way of interest and the return on government bonds has also fallen dramatically in recent years. Shares and higher-risk high-yield bonds offer more attractive yields, as do some alternative investment areas such as infrastructure or emerging market debt.
In these areas balancing a high income and not taking too much risk becomes a challenge. We suggest holding a range of assets to avoid reliance on too few investments. In our latest feature on the subject we suggest three of our favourite funds which pay an attractive income now, with the potential for income and capital to grow.
Read our feature on opportunities for income investors. While we are positive on the prospects for the UK, excellent opportunities can also be found globally. European markets have performed well of late, but still look decent value to us. For this reason we believe tax rises are inevitable as the government seeks to balance its books. Fortunately investors have two simple, government-backed ways to shelter their capital from the taxman.
In a SIPP self invested personal pension investments are also sheltered from tax, and are ring-fenced for your retirement from age 55 — rising to 57 in This article is not personal advice. If you are at all unsure of the suitability of an investment for your circumstances please seek advice. More about ISAs. More about SIPPs.
The average easy access rate at the end of April was 0. But should you listen? We bust 5 common financial advice myths and explain how advice can help you achieve the financial future you want. Home News Articles Election: where next for investors. Category: Investing and saving A A A. Election: where next for investors Our experts suggest some courses of action to consider as the dust settles on the election result. Don't neglect the UK market We often observe a tendency for investors to write off their home market too easily, preferring more exciting opportunities overseas.
Smaller companies - two exceptional managers Whatever hue of government is in power, smaller companies are the lifeblood of the UK economy. Ideas for income investors in a low interest rate world The election result cements our view that interest rates will remain at rock-bottom for the foreseeable future. Read our feature on opportunities for income investors In need of diversification?
Remember tax rules can change and the benefits of tax shelters depend on personal circumstances. Related Articles Interest rates on the rise. But you could still get five times more on your savings 26 May The inside scoop on stock splits — what investors need to know 23 May Martin Lewis says some should ditch their Cash ISA.
Involving all employees in the business through encouraging share ownership is viewed as a positive development, and support will be given to schemes in which all employees can participate. Scrip dividends are a useful way for companies to assist their cash flow and cut tax liabilities, and WYPF will generally support scrip dividend proposals where a cash alternative is provided for shareholders.
WYPF will not support a resolution seeking approval for making political donations, unless political parties are specifically excluded, the authority is for no more than one year, the types of organisations that may receive donations are indicated, and there is clear justification for how any donations will be in shareholders' interests. Should political donations be disclosed which have not been previously authorised by shareholders, WYPF will not normally support approval of the report and accounts.
Shareholder resolutions allow shareholders to focus on a particular area of concern, and WYPF will support resolutions where:. The most important factor relating to investment trust boards is the presence of a board sufficiently independent of the company's investment managers to ensure objective scrutiny of their activities.
The following guidelines must be in place relating to investment trusts:. In deciding on how to vote on resolutions relating to takeovers, mergers, capital reorganisations, share issue authorities and market purchases, the WYPF will be guided by whether:. Corporate governance safeguards are required for shareholders in companies where there is a controlling shareholder, defined according to the threshold imposed by local market regulations.
Companies with controlling shareholders should comply with normal best practice guidelines, and safeguards for minority and non-controlling shareholders be built into board structures and company articles. In particular, a majority of the board should not have any connection to the controlling shareholder and the board chairman should not have any connection to the controlling shareholder. Share buy-backs and other capital changes can have the effect of increasing the proportionate stake of controlling shareholders.
In such circumstances, companies may seek waivers from regulatory requirements that a controlling shareholder should make an offer to all shareholders if their holding increases. WYPF will vote on all non-routine resolutions, including those at EGMs on their merits on a case-by-case basis, and will take account of corporate governance structures and implications, the impact on stakeholders, and the adequacy of information and explanations.
Home Investments WYPF Investments Voting policy Investment voting policy West Yorkshire Pension Fund will vote as follows: FOR - where the proposal meets best practice guidelines and is in shareholders' long-term interests; ABSTAIN - where the proposal raises issues which do not meet best practice guidelines but either the concern is not regarded as sufficiently material to warrant opposition or an oppose vote could have a detrimental impact on corporate structures or the issue is being raised formally with the company for the first time.
Voting policy - Best practice guidelines General principles In supporting any resolution of any type, the West Yorkshire Pension Fund WYPF will only vote on the resolution provided that: the resolution deals with one substantive issue and is not bundled with other items; the resolution is fully explained and justified by the proposers; there is full disclosure of information relevant to the consideration of a resolution and such information is presented in a fair and balanced way.
Directors a There should be a clear division of responsibilities at the head of the company. Independence will be judged according to the guidelines shown in Annex 1. Where employee representatives are included on the board this need not be a majority but where shareholders are unable to disapprove of individual directors election via a vote the fund will expect a higher threshold of independence. Directors' remuneration a Executive remuneration should be determined by a formal and independent procedure.
The chairman may not sit on this committee;; remuneration committee receives independent advice; remuneration committee has at least three members; remuneration committee has written terms of reference which is made publicly available. The structure of senior executive remuneration below board level should be disclosed. Any areas of discretion afforded to the remuneration committee over execution of the company's remuneration policy should be fully disclosed c Long term incentives should provide rewards scaled towards superior performance.
Remuneration policies and practices should be integrated into the company's risk procedures; total potential rewards under all incentive schemes are not excessive; average salaries are broadly in line with the sector; directors are required to build up a significant shareholding; share incentive schemes conform with local market dilution guidelines; schemes are available to enable all employees to benefit from business success; transaction bonuses are strongly discouraged i.
Our Liquidity. Even with a disciplined investment approach, the temptation admittedly exists to position portfolios to take advantage of, or hedge against, potential election outcomes. We caution investors against doing so at this time, but rather to be flexible to alter their portfolios as new information arises.
The election outcome is still uncertain and positioning a portfolio right now for a specific outcome leaves it vulnerable to the good chance that another outcome, with different market consequences, materializes.
In a Blue Wave scenario, we believe relative winners could include companies that are leveraged to infrastructure spending with a focus on green initiatives, transportation infrastructure, and 5G buildouts. Other relative winners could include companies that are more insulated from an increase in corporate taxes and those that could benefit if trade tensions cool. Within healthcare, we recommend companies that could benefit from an expansion of healthcare coverage.
In the Red Wave scenario, our recommendations are leveraged to infrastructure spending on transportation and 5G networks. Within healthcare, we recommend managed care companies, which also avoid the risk of changes in healthcare coverage from a potential Biden victory. Other relative winners include defense companies that should enjoy a more supportive backdrop in a second Trump term. We are still likely to see uncertainty remain around major policy issues throughout the campaign season.
Our recommendations avoid companies with significant exposure to the potential major policy changes that will be discussed on the campaign trail. Strategies are subject to individual client goals, objectives and suitability. This approach is not a promise or guarantee that wealth, or any financial results, can or will be achieved. For our current views throughout this presidency, visit ubs.
The current economic and market environment. Start a conversation. Be the first to know Want insights straight to your inbox? Subscribe for the latest to stay up to date. The expected impact from potential election outcomes. Divided government Policy through regulation The critical distinction for investors is whether the November election results in a unified or a divided government. The Biden Trade There may be a widespread presumption that a Blue Wave would be negative for US equities, and other risk assets to a lesser extent.
Scenario analysis summary Check out our forecast of the likely impact on the US economy, equities, and fixed income for four potential election outcomes. See what we think. The road to Our coverage of the US elections will continue throughout the months ahead. Send me notifications. How to invest between now and November. Blue Wave implementation In a Blue Wave scenario, we believe relative winners could include companies that are leveraged to infrastructure spending with a focus on green initiatives, transportation infrastructure, and 5G buildouts.
Red Wave implementation In the Red Wave scenario, our recommendations are leveraged to infrastructure spending on transportation and 5G networks. Campaign Warriors We are still likely to see uncertainty remain around major policy issues throughout the campaign season. Preparing portfolios for November Get your free copy of our eighth edition of the ElectionWatch report series. Download the report PDF.
Interested in more content? Subscribe to our newsletter for the latest investment views. Schulze also seemed to count himself among those who think a Democratic sweep, which the RealClearPolitics average of polls shows as a likely outcome, would be the most favorable outcome for markets in the near-term. Higher proposed regulation and taxes are indeed the biggest headwinds Democrats face in terms of convincing investors they're the best option on the ballot.
But consensus — at least when it comes to tax reform — seems to be that these hikes will have to come down the road with the economy still hurting from the ongoing outbreak of COVID Schulze agrees with this assessment, and prompted investors to look back to — when the economy was coming out of a recession and Democrats had just swept the election — for insight into the implications of a Democratic sweep.
A key reason for that is because Democrats were hesitant to raise taxes with an unemployment rate that high and an economy that was slowly recovering, and obviously that's the same exact scenario that we find ourselves in today," Schulze said. He added: "Maybe we get half of the tax raises that come along with a Democratic sweep, maybe you get a postponement of an increase in taxes to late or , when the economy is on better footing. Keep reading. For you.
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All of the Pension Fund's investments in equities are now invested via pooled funds through the ACCESS pool. Votes are cast according to the pool's voting. As a global investment manager, we help institutions, intermediaries and individuals across the planet meet their goals, fulfil their ambitions. Investor Questions · Qualified Opportunity Funds (QOF) · Deferral of Eligible Gain · Day Investment Period · Basis Questions · Inclusion of Deferred Gain.