Pictured above: David Sweeney
As markets begin to turn positive, private investors should be
wary of taking short-term investment decisions based on the latest
product launches, according to the newly appointed head of wealth
advisory at PricewaterhouseCoopers LLP (PwC) in the Midlands.
Backed by more than 20 years experience in the private client
sector, David Sweeney has recently joined PwC and will be working
closely with experts in other areas, such as tax, to offer
investors an integrated approach to managing their
wealth.
David joins the firm at a time when many private investors'
portfolios have bounced back following significant losses and are
now beginning to feel more positive about their investment
portfolio and its ability to achieve strong returns. According to
David, this is exactly the time when investors need to take care
when making investment decisions.
David Sweeney, head of wealth advisory at
PricewaterhouseCoopers, Midlands, comments: "As the upturn
gathers pace, we are continually seeing new funds being launched in
a variety of areas, such as emerging markets or so called
structured products, to attract the attention of investors.
However, they should be wary of looking for the next big thing to
invest in and instead consider a risk managed approach to ensure
the most stable returns in the long term."
Whilst the promise of short-term gains from investing in new
products could seem tempting, private investors should not forget
the fundamentals and take steps to protect their wealth for the
future.
David Sweeney, head of wealth advisory at
PricewaterhouseCoopers, Midlands, adds: "Private investors
should avoid incurring additional management fees and deal costs
caused by continually switching between funds. Academic research
shows this does not add value. The movement of funds can result in
tax liabilities and funds should be invested in tax efficient
vehicles.
"The recent increase to the higher rate of tax means that, where
possible, individuals should look to generate gains rather than
income from their investments as capital gains are currently taxed
at just 18 per cent and benefit from an annual exemption of
£10,100. It is important that each investment decision is
considered as part of a wider, long-term wealth strategy and that
this strategy is reviewed and rebalanced to reduce potential
risks.
"I am looking forward to the challenges in my new role and to
supporting client's long-term plans for their investments as they
navigate the upturn."