Gilliat financial solutions

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Gilliat financial solutions

  1. 1. Alternative Income Solutions in Retirement January 2013 Andrew Savill Professional Advisor use ONLY – Not for distribution to Retail Clients. Gilliat Financial Solutions is a trading name of Arbuthnot Latham & Co., Limited who are authorised and regulated by the Financial Services Authority No. 143336.
  2. 2. Gilliat Financial Solutions• Part of the Arbuthnot Banking Group plc., which can trace its name back to 1833• Authorised/regulated in the UK• Gilliat is a leading provider of Structured Investment Solutions• Fully independent from but works in partnership with leading Investment Banks• Global Business reach servicing the financial advisory community• Award winning Research and Development• Directors have background in trading, risk management and investment design 02/06/13 Gilliat Financial Solutions is a trading name of Arbuthnot Latham & Co., Limited who are authorised and regulated by the Financial Services Authority No. 143336. 2
  3. 3. The UK’s leading independent structured product provider 2
  4. 4. Retirement – not what it used to be? Ever more people approaching retirement are having to contend with:- •Low savings rates •Low annuity rates •Inflation •Sovereign bonds at record highs •Longer life expectancy •Uncertain financial markets
  5. 5. Interest Rates at ‘all time lows’ Source: Bloomberg 21 January 2013
  6. 6. Fixed Rate Bonds in the UK – Current offers… A scan of the UK Market – w/c 21st January 2013 - best rates from the ‘big 5’ UK banks •Barclays Bank – 2.15% for 18 months •RBS – 2.1% for 2 years •HSBC – 3% for 5 years (£100k +) •Santander – 2.5% for 18 months •Lloyds TSB – 2.25% for 3 years In 2007 rates of 6% + were available Source: Bank Websites 21 January 2013
  7. 7. Annuity Rates have also fallen around the worldIn the UK and US especially, QE has driven downannuity rates which has pushed yields lower around the globe. Source: ThisisMoney.com 21 January 2013
  8. 8. Where else does one look for income? Bond Funds? • Very popular in Q3 and 4 2012 but has the ‘great rotation’ started? Is the sector ‘overbought’? • Yields can be unpredictable and are presently low. • Higher yield bond funds possibly a better bet with risk environment improving. Equity Income Funds? • Yields and/or distributions still in the 3 to 5% range • Capital is not protected – market cap can rise and fall. Property? • Liquidity a concern, speculative developments? • Physical property can deliver good returns but is not without risks – cyclical/tenants/maintenance/legal risk
  9. 9. Alternative Solution What Gilliat were asked for in 2009:- • A known level of predictable income • A covenant from a reputable financial institution • A very transparent level of market risk with a robust capital protection feature • Daily liquidity in the event of clients requiring exit • Constantly available solution
  10. 10. Example Structured Note - Income Builder PLUSGilliat Income Builder Series•Has been provided by Morgan Stanley, RBSand Commerzbank since the series began inearly 2010.•Produces Quarterly Income•Capital protected if FTSE100 is above 3500points (currently 6200)•Rates (fixed for each deal) have beenbetween 6% and 9.7% p.a.•6yr Investment Term
  11. 11. Gilliat Income Builder – Income
  12. 12. The FTSE100 Index since 198402/06/13 Gilliat Financial Solutions is a trading name of Arbuthnot Latham & Co., Limited who are authorised and regulated by the Financial Services Authority No. 143336. 12
  13. 13. Perhaps an Israeli Market Solution too?Over the last 5 years the Israeli Stock Market has exhibited similartrends to the UK. Source: Bloomberg 21 January 201302/06/13 Gilliat Financial Solutions is a trading name of Arbuthnot Latham & Co., Limited who are authorised and regulated by the Financial Services Authority No. 143336. 13
  14. 14. Perhaps an Israeli Market Solution too?Harnesses the bond AND equity marketsto produce a product that fills a gap inthe market.Has transparent risk / returncharacteristics and a robust capitalprotection feature. 02/06/13 Gilliat Financial Solutions is a trading name of Arbuthnot Latham & Co., Limited who are authorised and regulated by the Financial Services Authority No. 143336. 14
  15. 15. Important NotesThis material is for professional financial advisers only and persons of any other description shouldnot rely or act upon it. Any investment in Gilliat Financial Solutions products should be made onlyafter the investor has read and understood the product Guide including the Terms & Conditions,and the Termsheet.Issued by: Gilliat Financial Solutions a trading name of Arbuthnot Latham & Co., Limited.Arbuthnot Latham & Co., Limited is registered in England No. 819519. Registered office:Arbuthnot House, 20 Ropemaker Street, London EC2Y 9AR.Gilliat Financial Solutions a trading name of Arbuthnot Latham & Co., Limited. who are authorisedand regulated by the Financial Services Authority, 25 North Colonnade, Canary Wharf,London E14 5HS. Registered under the Financial Services Authority number 143336.Gilliat Financial Solutions does not offer investment advice or make any recommendationregarding investments.Returns from the structured products are at risk in the event of any of the institutions whoprovide securities for these products default on their financial obligations.02/06/13 Gilliat Financial Solutions is a trading name of Arbuthnot Latham & Co., Limited who are authorised and regulated by the Financial Services Authority No. 143336. 15
  16. 16. Andrew Savill Adrian NeaveBusiness Development Director Managing DirectorGilliat Financial Solutions Gilliat Financial SolutionsArbuthnot House Arbuthnot House20 Ropemaker Street 20 Ropemaker StreetLondon EC2Y 9AR London EC2Y 9AROffice: +44(0)20 7012 2803 Office: +44(0)20 7012 2801Mobile: +44(0)7785 470 030 Email: adrianneave@gilliat.co.ukEmail: andrewsavill@gilliat.co.uk

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