Financial Investments Restructuring

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Market values change, taxes can increase, and inflation is always rising. How will you weather these storms until your retirement and beyond when you are reliant on your assets to perform? Smart investment restructuring can bolster your nest-egg from upheavals and protect it from haemorrhaging fees and charges often hidden from view.

A financial investments restructuring strategy

At Hobbs Financial, we first run an audit of existing financial assets, unit funds, pensions and bonds, to stop bleeding unnecessary costs and to lower risk where it can be done without hurting performance.

Once complete, we analyse changes in the financial landscape and measure the impact it will have on our clients’ investment portfolios.  We then recommend a bespoke financial investment restructuring plan, so you can enjoy your investments when the time comes.

We use a huge host of the who’s who in the global universe asset managers and access their cheapest institutional prices among thousands of funds.  These prices are at half the cost of retail prices via the latest technology platforms through whom we place our client investments in the safe hands of the world’s biggest custodians.

Stress test your financial investments

Have your financial investments and pensions been stress-tested?  This stress test is a great way to find out how your investments and pension portfolio would fare in a financial crisis and how much is being lost in avoidable costs.  We don’t have to look too far back in history to see how damaging economic crises can be for property values, shares, corporate bonds, sovereign debt and bank stability.  We are true believers in having a Plan B.


How the stress test works

After ten years of extreme monetary policies, ultra cheap credit and trillions in artificial supports by Central Banks, most asset classes are at elevated prices.  What happens if there’s a sharp correction or series of corrections as interest rates rise and economic gravity returns?  Here are some examples of what we look into during a stress test:

  • After three decades in a bull market where Government Fixed Interest bonds beat cash deposits, we are reaching an inflexion point. How exposed are your financial funds?

  • Tracker Bonds have been all the rage, but we believe these are merely glamorised deposit accounts where the future capital guarantee is dependent on a bank not defaulting.
    From which bank are you at risk and what is its credit rating like?

  • Managed and multi-asset funds, the staple diet for decades, typically hold two-thirds of their position in shares. Is now the time to take profits off the table and hunker down?
    We think so.

  • It has taken until October 2018 for a full look through transparency on Life Office unit-linked funds, but it won’t apply to the tens of billions already held. Just exactly how much of the return is being gobbled up in concealed charges? We investigate, report and show how alternatives can save you a bundle of money.

  • What banks do you hold your cash in and how exposed are you to any EU bank contagion that might be caused by the weakest parts of the system, such as certain Italian banks and Deutsche Bank? We examine and report on default risk and how to minimise it.

Our take on financial investments restructure

We are all cheering for Plan A to work, more economic expansion and a gradual paydown of all the excessive debts. It’s what Central Banks, national governments, multinationals and SMEs are banking on, but that doesn’t mean betting the house on Plan A.

Right now, interest rates are on the rise as Central Banks are determined to cease propping up zombie companies and high-risk countries with excessive national debt and little real reform. Therefore, it makes a lot of sense to have Plan B ready to roll too, to protect the downside if we get fresh global shocks.

We keep our clients on their toes with regular proprietary analysis written in plain English, helping you to interpret events and make sense of an unpredictable financial world.

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Plan for the good times

Investors are the kind of people who realise that there is a little bit of party planning required to truly enjoy the celebrations later!  Financial investments restructuring ensures that your smart investments are poised for success at the right moment.  It’s time to find out would your investments take care of you when you need them most.

Ready to stress test your financial investments? Try these three quick questions:

  1. The Credit Rating of my Bank or Credit Union is…
  2. The total ongoing fund charges that I pay for my pensions and life insurance is…
  3. My plan B is to be activated by the event of another Global Financial Crisis, which I’ll get advance warning about by…