Investment Opportunity in The Park, Carrickmines
As set out at our recent Property Seminar in the RDS we retain a positive outlook on Irish commercial property for the medium term. We have been looking at a number of commercial real estate opportunities for our clients and have secured ac cess to a unique commercial real estate opportunity relating to number of buildings in The Park, Carrickmines. The investment targets an annual distribution of 5% per annum along with a target equity uplift of 55% on exit.
Key Features of Investment Opportunity in The Park, Carrickmines
- 4 modern, well located commercial properties constructed within Ireland’s most successful retail park
- Target annual distribution 5% per annum
- Target Equity Uplift on Exit 55%
- Target Total Return 80% (5% annual distribution & 55% uplift on exit)
- Anticipated term of the investment is 5 years
- Minimum investment by qualifying investors is €100,000.
The investment is currently being established and will be structured as a Qualifying Investor Alternative Investment Fund (QIAIF). Access will be limited to clients who can meet the definition of a Qualifying Investor.
If you wish to find out more about this investment or to receive an Investment Brochure please contact us at firstname.lastname@example.org or on 01 2375500.
What are the Benefits of Working with an Independent Financial Adviser?
We like to think at Harvest Financial Services Limited (Harvest) that our existing client’s have seen for themselves the benefits of having somebody impartial guiding them in relation to their financial challenges. However maybe the benefits are not quite so clear to someone who has tended to go it alone in the past, or has depended on getting financial advice from banks or other product sellers.
So first of all, what do we mean by independent financial advice? Well to start, it’s not actually about financial products. Independent financial advisers such as Harvest are people who build an understanding of your financial objectives, take a completely impartial view of your financial circumstances and make recommendations to help you achieve your objectives. This may be about changing how you manage your money or indeed it may be a recommendation for a financial product. In the latter case, the very best product available in the market for you will be recommended, rather than the only product available to the seller (in the case of a bank or direct seller from a life assurance company). Qualified professionals deliver independent financial advice, with access to products right across the market. Of course, they will then help you to get these products up and running when required.
We believe there are a number of benefits to be gained through working with an independent financial adviser such as one of our team at Harvest that is someone who will deliver impartial advice to you.
We start with you, not with a product
We are not part of a large corporate organisation with pressurised sales targets. As a result we don’t start out with a shelf full of financial products to sell, and then spend our time trying to match these products to the needs of clients.
Instead we start with you. We want to gain a deep understanding of your lifetime and lifestyle goals and ambitions, and then we determine how you can make this happen from a financial standpoint. So we spend a good bit of time at the outset building up this picture, as understanding your specific circumstances is critical to any later recommendations that we might make. These recommendations might include the need for a financial product, and then again they might not. Maybe you are well on the road to financial independence already and simply need some tweaks to your existing investment or retirement portfolio?
We’ll get you the best product
However if we determine that a financial product actually is needed, then we have the choice of products in the marketplace, which allows us to find the very best product for you. We know the ins and outs of all of the products in the market place and are very aware that the cheapest is certainly not always the best! Some products have little known features that just might be really important for you. It’s our job to know all of these details and to find the right product for you. We carry out careful due diligence on our recommended providers and understand in detail their products. So as a result, our recommendations will be based on a wide range of factors including,
- The financial security of the provider
- Their pricing structure and what the product will cost you
- The specific features and benefits of the products
- The provider’s range of investment funds, past performance and investment strategy
- The provider’s record for paying claims
- How easy it is to do business with each provider
And of course this is a constantly moving picture that we monitor on an ongoing basis. Maybe a better product will emerge in time, and we can then discuss this with you at a future review meeting.
This is very different to non-independent financial advisers who will be faced with force-fitting you into the only product available to them to sell.
We’ll travel on your financial journey with you
Financial advice is not simply a product transaction. Working with an independent financial adviser is a journey; identifying objectives at the outset, developing a plan, implementing that plan and then most importantly reviewing and tweaking the plan regularly into the future as your circumstances change. So you need a trusted partnership with your adviser, and this can only happen if you can build a long-term relationship with them. Every time you come to see us at Harvest, you won’t be meeting a new face and starting from scratch again with a new adviser. We build long-term trusted partnerships with our clients, working consistently and collaboratively with you over many years.
This is very different to a relationship with your bank branch, where it is difficult to build this relationship as their staff constantly changes in line with their broader business demands.
Working with an expert makes sense
We are highly qualified and experienced people. When you’re sick, you go to a doctor. You go to a solicitor if you’ve got a legal issue and when you need to borrow money, you go to your bank. So when you need financial advice, go to the expert professional in that area. That person is your independent financial adviser. The team at Harvest will be delighted to answer any queries you have. Call us on 01 2375500 or email email@example.com
This Sunday April 9th a team of seven people from Harvest will be taking part in the 10k Great run in the Phoenix Park in Dublin. The team will be led by our Investment Director Terry Devitt who says that, in true military general style he will lead from behind. We are doing this in support of two amazing charities The Down Syndrome Centre which provides services-led centre for children with Down syndrome and their families and Fighting Words who provides free tutoring and mentoring in creative writing to children.
All contributions will be very welcome from €5 upwards- Click Here
The Down Syndrome Centre was founded by Peter Gaw and his wife, Mary as a result of their frustration at not being able to access relevant services for their two youngest children, both of whom have Down syndrome.
The charity had been around for a few years and, in October 2014, were finally able to open the doors to Ireland’s first (and only) services-led centre for children with Down syndrome and their families.
Fighting Words provides free tutoring and mentoring in creative writing and related arts to as many children, young adults and adults with special needs as we can reach. Fighting Words programmes and workshops are delivered mainly by volunteer writing tutors. Fighting Words workshops are created and run by volunteers, including professional writers – novelists, screen-writers, journalists, poets – aspiring writers and students.
Fighting Words helps students of all ages to develop their writing skills and to explore their love of writing. 94% of Fighting Words funding comes from private individuals and institutions and was was established by Roddy Doyle and Sean Love. Inspired by 826 National in the United States, Fighting Words is located on Behan Square, Russell Street, Dublin 1.
The bullish start to the year has clearly slowed in recent weeks and a marked tone of uncertainty is a growing influence on market direction currently. Bond markets have fluctuated somewhat over the first quarter as interest rate expectations have waxed and waned but were flat for the quarter as a whole. The strong early part of the quarter allowed the funds on our Recommended List to rise by almost 5% (in euro terms) on average over the three months.
The major factors weighing on markets are unchanged from three months ago – Brexit, the political landscape in Europe, political change in China and the outlook for growth in the US are all likely to be significant influences on how equity markets perform this year. We continue to hold the view that 2017 will most likely be a volatile year – the risk of a substantial correction in equity markets, while still less than 50% in our view, has not abated.
Although faltering a little at the end of the period, the first three months of the year were positive for equities and equity markets across the world benefited from the positive sentiment generally. Japan, which finished the quarter unchanged, was the sole exception among developed country markets. Emerging markets in contrast, rose strongly in line with investor confidence and on average grew by strong double digits (growth prospects in the Far East and economic recovery in Latin America). Currencies were less of an issue than had been the case in 2016 – in Euro terms, the dollar and Sterling moved only marginally. Performance data for the major markets is shown below:
Q1 2017 Full Year 2016
US +6.3%* +11.2%*
UK +4.3%* +19.1%*
Europe +6.4%* +3.1%*
Japan -0.4%* +0.4%*
Ireland +2.0%* -4.1%*
China +10.2%* +2.8%*
* Source: Financial Express Analytics
As markets continue to rise, we cannot discount the risk of a market correction. However, there seems little doubt that the economic backdrop is generally on an upward tack so that any correction could bounce back relatively quickly and could well represent a good buying opportunity. So while we are advocating caution in relation to increases in equity exposures, we are not advising clients to reduce unless their exposures to equities are excessive. We prefer equity funds with a focus on income as they are likely to be less volatile should markets get bumpy. Longer term, we are also very positive on emerging markets and believe most investors should discuss having at least some small exposure to those regions with their advisor. Our longer term view on equities generally remains very positive.
The decision by the US Federal Reserve to commence a phase of interest rate increases in 2016 was a clear signal that the bond markets were finally turning. However, on the evidence so far, nothing dramatic would appear to be on the cards for quite some time yet and we do not expect to see a whole lot in terms of interest changes in 2017. But economic news on both sides of the Atlantic has grown more positive of late and if there is evidence of emerging inflation, the interest rate cycle could accelerate upwards in 2018. On the other side of the coin, however, we have the prospect of Trump inspired trade wars, political unrest in Europe and Brexit, any or all of which could have a marked dampening effect on global economies.
Overall we are sticking to the view we have held for some time now that the mainstream bond market offers little value for investors currently. We do however continue to see some value in particular niches such as Emerging Market bonds and some of the specialist credit markets.
We held a recent client seminar on opportunities in the property market and judging by the level of interest in the event and in the lively discussion which followed the formal presentations, property as an investment opportunity is as attractive as it has ever been for Irish pension funds and private investors. As a house, we remain fans of property on a 3-5 year view and we see it as a core asset in most portfolios. Income can be a great compensation in volatile times and property is still one of the best sources of reliable income available. Investors need to be cautious about geared investments, as the next couple of years could see banks coming under balance sheet pressure and looking to force asset disposals in some cases. The domestic market still looks to offer good value but the same underlying value arguments apply to many international property markets also. Problems around liquidity and diversification must always be taken into account when investing in property but need not be a serious concern for longer term investors. In addition there is now a wide range of stock market listed real estate investment trusts offering exposure to diversified real estate assets combined with good liquidity.
After a volatile second half of 2016, currency markets were much more stable in the first three months of 2017. Forecasters still expect a strengthening dollar for the remainder of this year and a relatively weak euro. Sterling could be the most volatile of the major currencies, buffeted by economic news and progress with Brexit negotiations.
Gold and Oil
Having risen by 9%* in dollar terms during 2016, the uncertainty in the markets continued to provide strong support for gold, which rose by a further 8% in the first quarter, again in dollar terms. We would reiterate our view that a small exposure to gold in your portfolio is worth considering. Optimism about the OPEC agreement in November waned over recent months and the oil price has fallen by around 7% since the start of the year to its current level of $53 per barrel. Given the current global supply demand picture, we do not expect any change in the recent pattern over the coming months.
* Source: Financial Express Analytics
As mentioned, inflation is unlikely to be a factor in markets during the current year but could well emerge as a significant topic in 2018.
As always, you should only consider the investment views contained in this update in the context of your own attitude to risk and how such choices might impact your Asset Allocation model. Should you have any queries in relation to your investment portfolio, please contact us on 01 2375500.
|Warning: Past performance is not a reliable guide to future performance.
|This material is not intended to provide advice and is provided for general information purposes only.
Investing in Property
Property is arguably a more complex investment in comparison with most other asset classes for reasons of regulation, low liquidity, the requirement for management and the legalities around leases, ownership, etc. Harvest hosted a seminar for investors interested in Property as an Asset Class in the RDS this week.
During the seminar Marian Finnegan – Chief Economist, Director of Research, Cushman & Wakefield Sherry FitzGerald, gave a market update and an assessment of the prospects for the sector in 2017 and beyond.
Terry Devitt – Investment Director in Harvest Financial Services Limited looked at the various ways of investing in property through Funds, REITS, Development Projects and Direct Property. Terry highlighted the tax efficiencies of using your pension to access this asset class.
Harvest Financial – Property Conference – 29th March 2017