Muhammad Awan's Weekly Observer

www.pic-uae.com Muhammad.awan@devere-acuma.com Mobile: 0558373992
deVere Top News of the World
Inside This Issue
1 deVere Top News of the world
2 UK Pension News
3 Lump Sum Investments of the week
4 Retirement News
5 Performance of major stock markets
6 Weekly Market Overview
7 Property Investment News
8 Investor tip of the week
9 Market Know-How
10Upcoming Events
3 Best performing
Countries/Regions of the
week
1. Russia
2. China
3. Japan
WEEK 8 2016
MUHAMMAD AWAN’S
WEEKLY OBSERVER
Underperforming Country /
Fund of the Week
1. Korea
Newsletter Date 22 Feb 2016
This Week’s quote: “Do not wait to strike till the iron is hot; but make it hot by striking.” ~ William Butler Yeats”
Cautious Fund of the week
1. GAM Cautious Balanced
Managed
UK retail sales at highest surge in two years
Retail sales in the UK for the month of January surged at the highest rate in more
than two years, the Office of the National Statistics has revealed. Boosted for a
demand for clothing and computers, the quantity of goods bought increased for
the 33rd consecutive month, finishing much better off than what was forecast.
It was also the 19th consecutive month that year-on-year prices fell, with January’s
figure standing at 2.6%, the ONS figures showed.
From a year earlier, retail sales rose 5.2% in January, the office said. On the month,
food sales increased 1.1 percent and clothing and footwear sales were up 3.3%.
In the last three months, total sales have risen 1.4%, a 26th consecutive increase.
Shoppers seem to be doing more of their shopping online with the value of online
sales increasing by 10.4% in January 2016 compared with January 2015 and
increasing by 2.7% on December 2015. The amount spent online in January 2016
with department stores increased by 28% compared with January 2015 - the largest
year-on-year growth since December 2013.
This compares to in-store department store sales growth of 6.6% over the same
period.
BAE Systems sees rise in sales and profits
Defence, aerospace and electronics giant, BAE Systems has seen a jump in both
sales and profits for 2015. Operating profit increased from £1.3bn to £1.5bn while
sales rose by £1.3bn to £17.9bn. Profits are predicted to rise by up to 10% in 2016.
It is also growing into providing cyber security for major organisations, including
banks and telecoms. The applied intelligence sector experienced a sales rise of 31%
last year and BAE expects sales will continue to rise as cyber security becomes
progressively essential for both governments and commercial associations.
As part of its Strategic Defence and Security Review in November 2015, the
government announced it would continue to capitalise in expanding the abilities of
BAE's Typhoon fighter jets and prolong the aircraft's service life until at least 2040.
And in America, the government declared plans to escalate spending on defence
in both 2016 and 2017 and BAE says it believes it will benefit from that.
ECB ready to take action
The European Central Bank will intervene and ease policy should the recent
financial market turmoil or long-term impact of low energy prices threaten to keep
inflation persistently low.
This was the message of ECB president, Mario Draghi, to members of the European
Parliament’s Economic and Monetary Affairs Committee.
“First, we will examine the strength of the pass-through of low imported inflation to
domestic wage and price formation and to inflation expectations,” Draghi said.
“Second, in the light of the recent financial turmoil, we will analyse the state of
transmission of our monetary impulses by the financial system and in particular by
banks,” he continued said. “If either of these two factors entail downward risks to
price stability, we will not hesitate to act.”
Balanced Fund of the week
1. GAM Balanced Managed
Growth Fund of the week
1. Guinness Global Energy

PAGE 2 MUHAMMAD AWAN’S NEWS LETTER
Morgan Stanley Quarterly Income Note
 Quarterly cash coupons provided all indexes are
equal to or above for barrier 70% ,1.85% (US$)
and 1.75% (GBP)or 80% 2.25% (US$) and 2.175%
(GBP) (subject to choice of Note) of their starting
levels at the end of each quarter:
 Where one or more index is below its income
barrier level at the end of a relevant quarterly
period the income payment for that quarter will
be missed. Quarterly income payments will then
resume provided all indexes return to their
respective income barrier level
 5 Year maturity with full return of capital less initial
charge at maturity providing all indexes close at
or above 70% or 80% (subject to choice of Note)
of their starting levels
 Investment linked to the FTSE 100, Russell 2000 and
Eurostoxx 50 Indexes
Lump Sum Investments of the Week
UK pension funds face a two-decade wait before they have enough cash to meet their liabilities and the assets needed to pay
the pension requirements of their members.
The funding level of so-called defined benefit pension schemes, where the employer promises to pay a pension typically based
on a proportion of final salary, is worse now than in 2006, according to Redington, the pension consultant.
Dan Mikulskis, co-head of investment strategy at Redington, said the growth of liabilities at UK pension funds continues to outstrip
the growth in assets, despite substantial contributions from the companies that back the schemes.
Many well-known companies, including BT Group, the telecoms company, and energy businesses Royal Dutch Shell and BP, have
pension deficits that run into the billions, according to LCP, the pensions consultancy.
Redington estimates it will take until 2036 for the UK pension industry to collectively be fully funded. This figure is based on
employers continuing to contribute £20bn per year and expected returns of 1.7 per cent.
Mr Mikulskis said pension funds are paying the price for cutting their equity holdings in the wake of the financial crisis, from 61 per
cent to 33 per cent over the decade.
William Bourne, director at City Noble, an adviser to pension funds, said: “[The] research points to a longstanding truth that has
been partly forgotten in the private sector over the past decade, that equities are the natural asset class for any open [defined
benefit] scheme, because they provide a growing cash flow and some protection against inflation.”
Amin Rajan, chief executive of Create Research, a consultancy, said the switch from equities to bonds worked well for plans with
healthy surpluses. However, he added: “It has proved lethal for those with large deficits and negative cash flows caused by
ageing membership.”
These pension funds have missed two strong equity rallies over the past decade, Mr Rajan said. Many also piled into fixed income
when prices were at “sky-high levels”, meaning they “paradoxically ended up using risky assets to de-risk their portfolios”.
He said: “The switch from equities to bonds [by pension funds] was done with the best of intentions but it has ended up delivering
the worst of outcomes.”
According to the Pensions Institute, a research body, about 1,000 private-sector pension schemes are “highly unlikely” to pay
their members’ pensions in full because of huge levels of underfunding and financial stress.
UK Pension News
News
Goldman Sachs - Quarterly Income Note
 Quarterly cash coupons provided all indexes are
equal to or above 60% of their starting levels at
the end of each quarter:
 5 year - 1.4375% (US$)
 5 year - 1.40% (GBP)
 Where one or more index is below its income
barrier level at the end of a relevant quarterly
period the income payment for that quarter will
be missed. Quarterly income payments will then
resume provided all indexes return to their
respective income barrier levels
 Full return of capital less initial charge at maturity
providing all indexes close at or above 60% of
their starting levels
 Investment linked to the FTSE 100, S&P 500 and
Eurostoxx 50 Indexes

The 5 top most important things in your Retirement
1. Saving and Investing: Create a replacement for your paycheck
Why it’s key • Research finds that retirees feel more confident when their living expenses are covered by a guaranteed income.
How to do it • If Social Security and a pension aren’t enough, lock in more with an immediate annuity, which lets you turn a lump
sum into a monthly check for life. A 65-year-old man who invests $100,000 today could collect $560 a month.
2. Work: Freshen up your résumé
Why it’s key • Three-quarters of retirees over age 50 say they expect to work in retirement, but only 27% of retirees actually collect
a paycheck, EBRI reports.
How to do it • “One of the biggest mistakes people make is falling out of contact with their network,” says Tim Driver, CEO of
RetirementJobs.com. You finally have time to check out a conference or take former work friends out for lunch. Update your
résumé while your accomplishments are still fresh.
3. Social Security: Hold out for a richer benefit
Until age 70, waiting to claim earns you a bigger check. But according to a new study from the National Bureau of Economic
Research, even retirees with ample assets often grab a sure thing too quickly. In a study of IRA assets, the researchers found that
34% of early claimers had enough savings to wait two years; 26% could have held out for four years. Why does that matter? You
can claim your Social Security benefit as early as age 62. If you wait just two more years, your Social Security check will be 15.6%
bigger. Putting off claiming for four years means a 33.3% jump.
4. Lifestyle: Become a social media maven
Why it’s key: Retirees who maintain social connections are happier and healthier. To replace the social interaction you lose by
not going into an office every day, you can join clubs or volunteer. But recent studies show that social media is also a valuable
way to stay connected. A team of Mexican researchers found that people 65 and older who are active on social networking
sites like Facebook enjoy better health and reduce their chances of cognitive decline.
How to do it: Log in to Facebook. Then post, comment, and share articles. Those status updates, it seems, are actually good for
something.
5. Planning: Secure your legacy
There’s more to estate planning than wills and health care directives (you have those, right?). To ward off any tension later, talk
to your children about who wants jewelry and other sentimental items. Spell out who gets what in a personal property
memorandum.These five moves should set you up for a successful retirement. But also check these benchmarks to make sure
you’re well positioned for the many years ahead:
Retirement News
Nikkei 225 (+6.79%) Brent Crude (To: $33.01)
Saudi's Tadawul (+5.87%) Gold (To: $1,232.03)
France's CAC 40 (+5.71%)
Hang Seng (+5.27%)
Germany's XDAX (+4.69%)
FTSE 100 (+4.25%)
NASDAQ (+3.85%)
Qatar All Share (+3.75%)
Shanghai (+3.49%)
UAE's ADX (+3.38%)
Sensex 30 (+3.15%)
S&P 500 (+2.84%)
Dow (+2.62%)
JSE All Share (+0.72%)
The yield on 10 year US treasury
bonds remained flat at 1.75%, which meant
that prices were largely unchanged.
Performance of major stock market indices

The Organisation for Economic Co-operation and Development called for urgent action to tackle slowing growth, after
reducing its global growth forecast for 2016 to 3% from 3.3%.The think-tank said that trade; investment and wage growth were
all too weak, adding that cutting interest rates and other monetary policy measures were insufficient to reflate growth.
Earlier in the week, the Federal Reserve published the minutes of its January meeting. Most members agreed that the outlook
had become more clouded, while several of them argued that it would be “prudent” to wait for more evidence about the
underlying strength of the economy and inflation before embarking on any further interest rate increases. Furthermore they said
that if the slide in shares, high dollar and tighter financing costs persisted, the effects “may be roughly equivalent to those from
further firming in monetary policy.”
Amidst the uncertainty, US industrial output increased 0.9% in January, whilst manufacturing activity rose by 0.5%.
Oil remained in the news as at least 6 OPEC nations, including Saudi Arabia, backed a plan to keep oil production at January’s
levels. The deal will only take effect if agreed by all 13 OPEC members. Iran announced that it supported any measures to raise
prices, but said it wants to keep increasing its own production. Oil prices ended the week lower, as the Energy Information
Administration reported that US crude inventories increased by 2.1 million barrels.
Chinese banks extended a record $385.40 billion of new loans in January in the wake of increased liquidity injections by the
People's Bank of China. On the downside, data showed bad loans at Chinese banks jumped 7% in Q4.
Elsewhere;
 China removed the head of its securities regulator as the country tries to tackle volatility in its stock markets
 Japan’s exports fell for a 4th consecutive month, down 12.9% from a year earlier, supporting concerns that the
slowdown in China is continuing to hurt demand. Imports fell by 18%
Russia filed a lawsuit against Ukraine at London’s High Court over the non-payment of a $3 billion Eurobond, which matured in
December 2015 – the debt was issued in late 2013, shortly before pro-Russian President Viktor Yanukovych was removed from
power.
Weekly Market Overview
Don’t feel forced by Uncle Sam to give up your citizenship over
FATCA, Americans abroad urged
The estimated 8 million Americans abroad are being urged by the CEO of one of the world’s largest independent financial
advisory organizations not to renounce their U.S. citizenship due to FATCA before they have considered all the available
options. The message from Nigel Green, deVere Group chief executive and founder, comes as the latest U.S. Treasury data
reveals that a record number of people have handed back their American passports or green cards in the last year. Mr Green
states: “More Americans than ever are cutting their official ties with the United States. For the third consecutive year, a record
number of people have handed back their U.S. passports or green cards. This year the number is up by more than 20 per
cent. “It is widely recognised that this increase is largely due to the burden of the Foreign Account Tax Compliance Act, or
FATCA, that was passed in 2010 and came into full effect in 2014. “This highly controversial piece of legislation has had the
unintended consequence of turning millions of hard-working, law-abiding Americans based outside the States into financial
pariahs.” “Foreign financial institutions now routinely refuse to handle American clients – even if they have been clients for years –
as it is too much trouble and too costly to comply with FATCA’s onerous rules.” He continues: “Most Americans abroad are proud
of their citizenship and indeed many find it an integral part of their identity when living overseas. Therefore, giving up citizenship
is a distressing idea and something they wouldn’t do unless they felt there was no alternative. “As such, and because of the other
financial implications of doing so, such as exit taxes, I would urge anyone who is considering giving up their U.S. passports for
financial reasons and without wanting to, to seek specialist advice. Mr Green concludes: “Don’t feel forced by Uncle Sam to give
up your citizenship until all the options have been fully explored.“The authorities are taking this project very seriously and
Americans must ensure that they are FATCA-compliant. The penalties are hefty. “However, there are several well-established,
bona fide, compliant ways that U.S. expats can mitigate the often unbearable burden of FATCA. These include an additional
overseas pension contract that’s specifically designed for U.S. taxpayers with assets in their country of residence.”
FATCA sees thousands ditch citizenship in ’15
A record 4,279 people renounced their United States citizenship in 2015, up from 3,415 the year before, according to US Treasury
figures released on Friday and reported in the US press. It’s the third year in a row that record numbers of Americans have
renounced their citizenship. The spike coincides with the introduction of the Foreign Account Tax Compliance Act (FATCA), a US
law that forces Americans, including expats, to report their non-US financial accounts to the US authorities. In 2013, the first full
year after the introduction of FATCA, the number of renunciations hit 2,999 – up from 932 the year before. While this is a tiny
percentage of the approximately 8.7 million US citizens living abroad, research carried out by financial advisory firm deVere
Group suggests as much as 73% of US expats are considering renouncing as a result of FATCA.
Source: http://www.internationalinvestment.net/

Sr. No 1 2 3 4 5 6
Project Name Horizon Royal Victoria
Residences
Fifteen
Lansdowne
Stoneham Richard Quartier Rivergate House
Location Ilford, UK Royal Victoria, UK Croydon, UK Brisbane, Australia Berlin, Germany Wilburn Wharf, Manchester
Starting Price All 1 bed
rooms sold out.
2 bedrooms
starting at
£399,000
£495,000
Only 3 units of 1 bed
room left.
All 1 bed rooms
are sold. 2 bed
rooms starting at
£331,000
7 units of 1 bed
room available,
starting at
AU$415,000
€137,270 · 1 beds o £158,000- £212,000
· 2 beds o £188,000- £242,000
· 3 beds o £248,000-£302,000
· Penthouse Units o £250,000-£350,000
No. of Units
Available
20 35 30 20 5 Approx. 100 units by IPG
Typical Loan
to value
Upto 70% Upto 70% Upto 70% Upto 70% & upto
80% for Australian
citizens
45% Upto 70%
Payment plan 10% on
exchange, 5%
12 weeks later,
rest on
completion.
10% on exchange, 5%
12 weeks later, rest on
completion
10% on exchange,
5% 12 weeks later,
rest on
completion
10% on exchange,
balance on
completion
15% at notarization
deposit, 15% after
12 weeks,
10% next 12 weeks.
Balance of 60%
from equity and
mortgage to be
paid within 24
weeks
10% on exchange, 5% 12 weeks later, rest on
completion.
Completion
date
Q3 2017 Q4 2017 Q1 2017 October 2017 Q4 2016 Q3 2017
Key highlights· Crossrail effect.
· Increase in
demand in
fringe areas
due to high
prices in
Central
London
· 5% gross rental
guarantee,
valid on
reservations
made before
19th Feb
· Upcoming -
Asian Business
Hub.
· A minute
away from
Royal Victoria
DLR Station
· 8 mins into
Canary Wharf
· 4% gross
rental
guarantee,
valid on
reservations
made before
19th Feb
· £5.25bn of
combined
private
investment
· East
Croydon to
London
Victoria only
16 minutes
and to
London
Bridge only
18 minutes
· Croydon
offers
excellent
transportati
on links to
Central,
East and
South
London as
well as
Gatwick
Airport and
Brighton
· Westfield
Shopping
Centre
· Favorable
currency
play US v’s
Aus$
· High potential
for business
growth as
operating
cost is low.
· Cheaper
than
Melbourne &
Sydney.
· Fastest
growing
matured city
in the world
with
expected
GDP of 5%
pa.
· Top
Universities
· Being the
Capital of
Germany,
now boasts
the highest
employment
growth with
over all high
increase in
population
· Rising price
due to high
demand.
· Average
rents rising
by 12.5% pa.
CBRE
identifies
Richardkiez
as one of
Berlin’s top
five up-and-
coming
neighborho
ods
· New riverside community located 600m
from Spinningfields, the financial heart of
the city (home to Barclays, BNY Mellon,
HSBC, RBS)
· Key areas of Manchester such as
Castlefield and Deansgate within a 10-15
minute walk
· Mixed-use project comprising of
apartments, commercial space,
landscaped gardens and a renewed
promenade along the River Irwell
· Most active and well renowned developer
in Manchester.
· Core regional city - decentralizing power to
the heart of the Northern Powerhouse with
an elected mayor in 2017
· Dynamic and strengthening economy -
additional 110,000 jobs to being created
from 2014-2024
· High demand - private renting grew by
436% from 2001-2011
· Undersupply - 55,000 units need to be
delivered by 2027 to meet demand
· The UK’s buy to let hotspot – average yields
of 6%
·
For Brochure Please click
here
Please click here Please click here Please click here Please click here Yet to be launched
Property Investment News
IP Global has announced some great properties list and here is a breakdown of what
completion dates etc they have.

Fund Manager of the Week (Based on Performance)
Upcoming Events
David Horner currently running 1 fund
David Horner qualified as a chartered accountant in 1984 with Touche Ross & Co. In 1996 he joined 3i Corporate Finance
Limited where he was a manager giving financial advice to corporate clients. David joined Strand Partners Limited in 1993
where he was a director of structured and managed investments in quoted and unquoted companies. In 1997 he founded
Chelverton Asset Management and is currently a fund manager
investing in growth companies. Charles enjoys soccer, tennis, chess, cinema, music and walking when he is not working.
Equity is still the best growth story around and be careful of the bond market within the next few years
David Horner currently running 1 fund
David Horner qualified as a chartered accountant in 1984 with Touche Ross & Co. In 1996 he joined 3i Corporate Finance
Limited where he was a manager giving financial advice to corporate clients. David joined Strand Partners Limited in 1993
where he was a director of structured and managed investments in quoted and unquoted companies. In 1997 he founded
Chelverton Asset Management and is currently a fund manager
Investor Tip of the Week
Volatility has risen
In our view, the myriad economic uncertainties which prevail at present are consistent with continued elevated volatility.
What to do: Make risk matter. Portfolios with lower volatility- for instance, those which incorporate alternative strategies.
US& Credit Markets
Seek pro-growth opportunities. US activity remains sturdy as broader economic data suggest a solid macro foundation.
What to do: Credit spreads reflect pessimism. Markets have painted a range of high yield bonds with the same wide brush.
Europe & Equities
Europe’s recovery is broadening. Domestic factors are increasingly important drivers of the ongoing economic recovery.
What to do: Search for quality equities ‘made in Europe’. Invest over the cycle to benefit for generalized macro stabilization.
Japan & corporate culture
Japanese equities are attractive. An unprecedented focus on shareholders may boost optimism and return.
What to do: Exploit the change in corporate culture. Supportive valuations are backed by a long term positive trend in
profitability.
China & the Dual Transition
China’s Economy is in transition. The rotation to a consumer-driven, freer Chinese economy can help drive global GDP growth.
What to do: A Bumpy road ahead. We expect China to be a continued source of market volatility.
Market Know - How
dEVere Acuma Ladies Night
Date: Tuesday 23rd February 2016
Time: 19:30 – 22:00
Venue: Bussola – The Westin Hotel
Dress code: Smart casual
Drinks: Unlimited Prosecco, selected wines and beers.
Food: Selection of Italian small plates & canapes
Capacity: Limited Availability first come basis
Muhammad Awan | MBA | MSc
(BY REFERRAL ONLY)
Associate Wealth Consultant
Professional Investment Consultants
2201 Marina Plaza Office Tower
Emaar Drive Dubai Marina
Dubai, U.A.E
PO Box 75464
T: +971 4 310 9999
F: +971 4 392 7339
M: +971 5 583 73992
E: muhammad.awan@devere-acuma.com
W: www.pic-uae.com

Muhammad Awan's Weekly Observer

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Andere mochten auch

Andere mochten auch (7)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Muhammad Awan's Weekly Observer