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“You cannot eat a relative sandwich”

Working here at FMB I am very fortunate to listen to some of the most well respected and successful fund managers in theUK. The sheer size and history behind FMB attracts companies from all over the world to our front door.

It was one such meeting this last week where I heard the phrase, “You cannot eat a relative sandwich!” One such fund manager was explaining what he seeks when investing on behalf of his clients. He went on to explain that when markets and investment returns are negative, the end result to the client is what really counts. A manager can pat themselves on the back for having a fall of just 10% when everyone else has had 20%, but at the end of the day a relative loss is still a loss.

This point got me thinking! Most of you will be aware that, more often than not, time in the market is what makes much of the investment return. Some clients however do not have all the time in the world. Some clients only have smaller amounts of money that cannot easily be replaced in the event of a tumble stemming from global markets. Yet the same needs are often there. Bank returns are low, inflation is eating away at savings true value. I often hear, “I want higher returns than I can get from normal bank deposits, but am worried about losing any of my savings”

In situations like this, a protected investment might be the answer for some of your savings. They come in a variety of different forms from many different providers, many of whom are household names. Protected investments can use your ISA allowances to ensure any potential return is tax efficient or tax free. As with most investment types, no one product is suitable for all but as your local independent financial advisors we can assist you in finding what is exactly right for your needs, allowing you to continue to eat your sandwich.

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