News Archives - Holborn Assets Cyprus

Holborn deploys care packages to Cyprus wildfire victims

Michael Hiden — Tue, 10 Aug 2021 09:09:13 +0000

At Holborn, we are committed to helping out and giving back to the local communities we serve.

As the country deals with the devastating effects of wildfires caused by extreme temperatures, our Cyprus teams have been deploying care packages to those who need them most.

Two collection points were set up in Limassol and Paphos, with people donating what they could to help the victims.

We would like to say thank you to everyone who donated and everyone involved.

The post Holborn deploys care packages to Cyprus wildfire victims appeared first on Holborn Assets Cyprus.

Achieving financial freedom in the current climate

Michael Hiden — Tue, 05 May 2020 08:41:43 +0000

During times of crisis, working towards your financial goals may seem like a difficult task.

Senior Associate for Holborn Assets Cyprus, Ian Woodcock, spoke with Russian TV World about achieving financial freedom in the current economic climate.

RTVW:

I understand that Holborn Assets is a well-established company in Dubai. What made you choose to open an office in Cyprus? Which opportunity did you see?

IW:

Yes, that’s correct, Holborn Assets has been operating in Dubai for almost 30 years and is the most trusted financial services firm of its kind in the Middle East. The company has grown enormously particularly in the last five years, and now has offices in Hong Kong, South Africa, Malaysia, & the UK, with other offices opening very soon.

The Cyprus office opened almost exactly two years ago and was really the logical strategic choice for us. There is a vibrant expatriate market here, and we feel that our company profile fits perfectly with the local and expat consumer market. In addition to our office in Paphos, we will be opening an office in Limassol in 2020 and hopefully others further down the line. Our aim is to become the largest and most trusted “offshore” advisory firm on the island during the next few years.

RTVW:

Cyprus is the home of many national and international financial companies, including wealth managers. Can you tell what makes Holborn Assets unique? Why should an investor select Holborn Assets over any other existing wealth manager?

IW:

Well naturally Holborn can provide access to an extremely wide range of high performing products and funds, but more importantly, Holborn is a family-run business, and we feel it is these family values that really puts us above other IFA companies operating on the island. We strive every day to operate with a ‘client first’ based approach to business, to ensure all clients receive the very highest levels of care and attention.

When someone makes a financial investment, they are essentially making a commitment to a future life choice or goal. It is absolutely essential that their advisors are prepared to make that commitment with them, and see the goal through to completion. Most of Holborn’s advisors have been in the profession for 10-15 years or more, and we believe that having longer-term relationships or partnerships with our clients is more beneficial to both parties.

RTVW:

Is there a particular service you offer that is unique to the Cyprus market?

IW:

Each country or market that Holborn operates in brings its own unique needs or challenges, and a large part of our job (and the financial institutions we work with) is to find the right services or solutions for those challenges.

Over the last two years, we have seen growing frustration from domestic investors in Cyprus in two key areas: declining interest rates from banks, and declining rental yields for property owners.

Interest rates in the Western Hemisphere have been kept at ultra-low levels since the 2008 financial crisis. The Federal Reserve in the US, the BOE and the ECB have all recently been forced to cut rates even further to help stimulate the economy in the wake of Covid-19, and the global economy looks set to enter a sustained period of low or even negative interest from banks. Last year’s decision by some major banks to levy charges on certain accounts means that many investors can actually lose significant amounts of money just by holding cash deposits.

Holborn can provide alternative offshore Wealth Management solutions which combat negative interest returns by working with a carefully managed selection of investment funds and strategies. These solutions are all provided by well-established financial institutions in some of the safest investment jurisdictions in the world, meaning our clients’ capital can be working harder for them while being carefully managed and eliminating as much risk as possible.

The increasing demand for international real estate investment is a more recent development and can be attributed to the first signs of change in local property markets. Until only a few months ago real estate investment in Cyprus was thought to be a sure thing, with strong capital gains an almost certainty and rental owners having their pick of tenants. However, based on developing trends, market data and the fallout from Covid-19, the local market looks set for a difficult time ahead, where sales prices and rental yields could suffer enormously.

Holborn Assets has its own specialist property division and enables access to a range of both UK and International projects where better demographics and population density levels mean higher rental yields are more readily available. The property division is arguably the fastest growing side of our business and is something proving extremely popular with investors in Cyprus.

RTVW:

How do you see the future of the financial sector in Cyprus?

IW:

The 2008 crisis changed the landscape for the global financial industry, and its ripples are still being felt in many countries. As regulations for IFA firms become tighter and more demanding, companies that do not meet the necessary criteria are falling by the wayside.

MiFiD II regulations started to be rolled out in January 2018 but were only more rigorously implemented last year. We have already seen some smaller IFA’s forced to leave the island and the EU as a whole due to lack of proper licensing, and all the signs are that this will continue in the short term.

It is likely that the next few years will see more and more smaller firms fold or be acquired by bigger companies with better infrastructure, and this will hopefully lead to higher levels of service and better investment management for investors.

RTVW:

Many of our readers have their business in Russia. The Russian rubble has been weak against the euro for some time now. What advice do you have for Russian investors here in Cyprus?

IW:

Holborn Assets manages capital for a large number of Russians both in Cyprus and around the world, so we are very aware of the challenges they have been facing in recent years.

There are a number of ways in which we are able to help them, depending on their business activities, status on the island, whether EU citizenship or residency has already been obtained and so on. Rather than elaborating too generically here, we would prefer to treat each investor as an individual and give advice on a case by case basis.

Many Russian investors that we meet prefer to conduct business in English and keep conversations away from their homeland. However, it is worth adding that for those who would feel more comfortable speaking in Russian, we do have advisors who have lived and worked in Russia, and can speak fluently in their native tongue.

RTVW:

Financial forecasters have been predicting an economic crash in 2020. Do you agree with this prediction, and how can Holborn assist people in dealing with such an economic situation?

IW:

2020 was set to be a challenging year for markets even before the Corona Virus came along. A decline in the global manufacturing industry in 2019 meant we were approaching the end of the current economic cycle, and the next global recession would not be too far away. The unfortunate outbreak and spread of the Covid-19 has without question accelerated this process, and many investors are waiting anxiously to see how deeply the markets will be affected.

It is quite possible that we are on the cusp of a prolonged economic recession. It will take some time before the ramifications of the virus are fully understood, but their effects will be felt in financial markets for the remainder of 2020 and beyond.

It is important to understand that even during periods of volatility and negative growth that may arise, there will still be some fantastic investment opportunities available, particularly for the longer-term investor. A huge part of our job is to help our clients remain calm in such periods, and make sure they understand and believe in investment strategies we are implementing for them. Baron Rothschild is credited for the famous quote “the time to buy is when there’s blood in the streets”, and the coming months will provide a fantastic platform for investors who are brave enough to buy in, and position themselves for a market recovery when it arrives.

Holborn Assets partners with some of the oldest and most well-established fund managers & financial institutions in the world – such as Tilney, Rathbones, Brewin Dolphin, and Prudential. Some of these companies have history going back almost 300 years, and so are very adept at working through periods of economic recession. We are seeing actively managed “Multi Asset” funds becoming more popular, which allow clients access to multiple investment markets and sectors simultaneously. These types of funds will be continuously rebalanced and reformatted to suit surrounding economic conditions. This helps increase diversification inside investment portfolios while keeping risk levels as low as possible. Strategies like this should help protect investors to some degree against a possible crash while maintaining the right positions for good medium to long-term capital growth.

However, for investors who would prefer to stay away from traditional equity markets until the next economic cycle becomes more clear, our property division provides a fantastic alternative option. All key data points towards an incredibly strong rental market for the next 3-5 years in the UK, with good projections for capital growth in certain cities as well. Expat mortgages are available at very low rates for investors with good income streams, and with deposit requirements from as little as 10% on selected projects, it truly is a great way to “hedge” against an equity sell-off.

RTVW:

So, what advice would you give to anyone to people concerned about the markets or some of the points you’ve raised?

IW:

As I’ve mentioned before that all clients will have individual needs and investment objectives, so the advice being given will usually differ from person to person.

Very simply, meeting investors and understanding their needs or concerns is what I am here for, so for anyone with concerns or questions I would suggest they email or call me and I will be happy to arrange a time to meet with them.

The post Achieving financial freedom in the current climate appeared first on Holborn Assets Cyprus.

How Will Brexit Affect The Pound?

user — Wed, 30 Jan 2019 14:15:19 +0000

Theresa May is expected to continue talks with EU leaders in the coming days, after MPs backed a new proposal for her to renegotiate her Brexit deal. So where does the pound stand so far amidst Brexit?

January has been noticeably dominated by the Brexit proceedings, following a couple of parliamentary votes and prime minister Theresa May surviving a vote of no-confidence. This saw sterling surging to 11 week highs against the dollar! Pound pricing has certainly been interesting, as it has mostly failed to be deterred amid the various worst case scenarios which have been popularly publicised over the past month. Since the referendum in June 2016, holidays and imported goods have become more expensive, but UK exports have been cheaper. Britons living abroad who are drawing on their UK pension have certainly suffered as the pound has declined. With further volatility to be expected, we have to understand why the pound moves. Since 1992, the pound has floated freely on currency markets, meaning that traders – buyers and sellers – now determine what it’s worth. When the pound rises in value, more of the currency is being bought. When it goes down, more is sold. It’s important to remember that there are factors other than political events which affect its value. These include inflation, or the cost of living, which held steady at 2.4% in October. When inflation falls, this eases pressure on the Bank of England to raise interest rates. When interest rates are low, this can deter foreign investors from pumping money into the UK as it will earn less interest. This can also reduce the pound’s relative value. After the global financial crisis in 2008, countries whose economies suffered had weaker currencies. In recent years, traders have been looking much more at politics, rather than economic data, which means much faster trading and therefore a faster pace of change in price. That’s the volatility traders talk about. Pound performance since January 2007 Exchange rate with US dollar The two sharp declines in the pound can be seen clearly here in the 2008 financial crisis and in the aftermath of the 2016 referendum. Pound performance since Referendum in June 2016 Exchange rate with US dollar

Why does it react to the chance of a softer Brexit?

Any talk of putting Brexit on hold has boosted the pound, as it gives business some more room to put plans in place. A softer Brexit could be also good news for savers. Currency experts such as Canadian Imperial Bank of Commerce’s head of foreign exchange strategy, Jeremy Stretch, think that a softer Brexit could provide a boost to the economy by providing an element of confidence and certainty to companies and consumers who, in turn, may decide to spend more or take on more staff. That increased economic activity could then prompt the Bank of England to raise interest rates, boosting returns for savers.

So what’s better for the exchange rate? Deal or no deal?

As we’ve discussed, lots of different factors are at play, and they all feed into interest rates. However, Brexit is key to the current weakness of the pound. The morning after the referendum in 2016, the pound was down by more than 10% against the dollar and more than 7% against the euro – and it’s never recovered. In the event of a no-deal Brexit it’s likely that the pound will weaken because the financial markets don’t like uncertainty. We’ve already seen that with the slump in December after Theresa May postponed the parliamentary vote on her Brexit deal.

Some final thoughts:

Following the UK parliament’s vote within the last week, it would prove tactless to build a view on sterling assets unless, and until, we have a clear path forward on the next steps as determined by Theresa May. Even if there is a deal, the pound-euro exchange rate is likely to fluctuate for months and years to come. All the experts agree that it’s impossible to predict how exchange rates will behave in the coming weeks or months. Although the pound is weak at the moment, the more clarity there is over any deal, the more likely it is that it will rise in the near future. However, with so many hurdles ahead it’s impossible to predict how sterling will react. Hussein Sayed, Chief Market Strategist at FXTM, said “As of now, investors seem to be on wait-and-see mode.” So how can you get the best exchange rate? Talk to Holborn! We can offer great rates and expert guidance to help you make the most of your money abroad. If you’re transferring a significant sum to buy property overseas, using us could save you thousands. We can provide access to tools that help you manage the risk of a fluctuating currency market.

Are there any currencies the pound still strong against?

Yes! Post Office Money says sterling is stronger than a year ago against 25 percent of its 40 bestselling currencies, including the Turkish lira, Icelandic Krona, Brazilian real, Russian ruble and South African rand.

The post How Will Brexit Affect The Pound? appeared first on Holborn Assets Cyprus.

Time to switch insurance?

user — Tue, 29 Jan 2019 13:35:12 +0000

Is it time to get a better deal on your insurance and other key household bills? Three out of every five Brits switched providers last year for at least one of the top ten most common financial products. The word is out that, when it comes to financial products, a regular review can save you money! Fresh stats from UK’s Go Compare show that 64% of people switched at least one key provider in 2018 – which was 7% up on 2017. Insurance for car and home continue to be the top two products switched. Broadband, mobile phones, credit cards and energy saw the greatest increase in switching. So why the rise in switching? Of course, uncertainty over Brexit is fuelling financial worries for 2019. But, on the plus side, the UK Government has supported consumers by capping the charges that gas and electricity providers can make. Regulators Ofgem say the average customer should save around £76 a year as a result. This has led to a growing awareness that a review of financial products is an annual necessity. If you don’t keep checking what’s out there, you can end up paying for your willingness to stay put with your existing provider. Matthew Sanders of Go Compare reports that, “the notion that “loyalty pays” has been well and truly outed in the last 12 months, with the authorities taking steps to stop rip-off loyalty pricing.” Go Compare’s data shows that consumers generally stay loyal to their provider of motor insurance for 2 years and to their home insurer for 2.2 years. For energy suppliers, the average duration is 2.5 years. Sanders of Go Compare says, “if you are looking to make savings, switching providers for everyday financial services products and household utilities is an easy and effective way to reduce your outgoings … if you’ve never switched before or haven’t done so recently, you’re certain to save money.”

How many switched provider in 2018?

Car insurance: 28%
Home insurance: 23%
Energy: 20%
Mobile phone: 17%
Broadband: 14%
Credit card: 11%
Current account: 10%
Land line: 9%
ISA or savings account: 8%
Mortgage: 6%

Top tips for switching

Go Compare share some tried-and-tested tips for getting the best deal on your household bills:

Put key expiry dates in your diary. Otherwise you won’t remember when the time comes around to look at switching, and you may miss out on a securing a better deal.
Don’t accept an automatic renewal without checking out the market first!
Read the small print.
If a deal features an introductory rate, make sure you know what rate comes afterwards. Ensure you have a clear picture of your overall liability.

So get switching!

Ask your IFA to give you some juicy switching options. Maybe there’s deals that they know about and you don’t. Otherwise, price comparison sites online are widely recognised as being easy to use. And, if you can endure the risk of a little hassle, switching can definitely save you money.

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Brit expats demand more paperwork from EU (!)

user — Tue, 14 Aug 2018 12:40:28 +0000

Post Brexit White Paper, British expats living in the EU face fresh anxiety over their right to stay put – with EU member states accused of being slow to support expats in achieving the right “residency formalities”.

Paperwork, in other words. And the problem is (ironically, some might say) that there’s not enough of it coming out of the EU! In the wider picture, the good news for Brit expats living in the EU remains that Brexit does NOT mean Exit. The right of Brits to stay put abroad was largely safeguarded as part of developing the UK Government’s Brexit White Paper of July 2018 (phew!). So there’s no emergency yet. But EU host nations have been criticised for failing to put the necessary paperwork in place for Brit expats living in the EU to secure their residency rights officially – even though the UK is steaming ahead to provide the reciprocal administrative service for EU expats living in the UK.

UK calls for EU to pull its weight

In the UK, officials have already unveiled the UK’s fast-track scheme for EU citizens wishing to stay. Applicants must answer three quick questions via text, pay £65, and receive an answer within 2 weeks (compared to 6 months for standard applications in the past). The system is planned to go live in New Year 2019. “Our default position will be to grant status,” UK Home Secretary Sajid Javid has confirmed. A representative from UK law firm Kingsley Napley said the scheme is “a revolution in digital applications for Europeans applying for residency documents … but the experience for Brits applying for residence across mainland Europe is likely to be much more bureaucratic.” Home Secretary Javid issued a challenge to the EU in June that the UK’s administrative efforts were not being matched by EU member states, asking that the EU publish detailed proposals showing how they plan to look after the residency rights of Brit expats. And he’s not wrong to worry, apparently; the EU’s chief Brexit negotiator Guy Verhofstadt is reported to have, “acknowledged that the EU’s 27 member states had not done enough to set out what the procedures will be for expat Britons living across the EU.” (Sky.com) A detailed system of who’s eligible for what on a fundamental level has been agreed – it is just a question of EU member states adding what individual regulations they have the sovereign right to impose, and then giving expats the appropriate tools to stake their claim. Certainly giving expats clear information about their residency rights and responsibilities post-Brexit would be a start. But that’s not reportedly the case in some EU states. “There are concerns … about how well prepared EU governments will be to manage residency applications by British nationals.” (Telegraph.com) Fears have been voiced in several EU states by worried British expats. For example, when it comes to residency status, the Cyprus Mail reports that,“despite a number of public events for Britons living in Cyprus that have been organised by the High Commission, expats say they are being given conflicting information when they visit various migration offices around the island.” Post-Brexit White Paper, expats in Cyprus are unsure about their eligibility for EU residency certificates MEU1 and MEU3 – as well as the implications of having them. MEU1 registers an expat as having lived in an EU country for 3 months; MEU3 for 5 years (see below). The good news for Brits in Cyprus is that,“the agreement reached with Brussels means that UK nationals living in Cyprus will be able to carry on living, working or studying in Cyprus for as long as they want to.”

Do Brit expats have the right to stay living in the EU?

The short answer is: generally, yes! There’s now a simple set of reciprocal rules in place supporting the rights of EU citizens to live in the UK and UK expats to live in EU member states. The rules are based on how long an expat has been in-country and their employment status (worker/student/pensioner/jobseeker). The Telegraph reports that, “EU expats who are resident in Britain at the end of 2020 will be entitled to a permanent right to remain if they stay for five years. The same rule applies to British expats living in the EU.” All countries can impose additional regulations on top of this EU basic format and the arrangements for the UK. LESS THAN 3 MONTHS “As a EU national, the only requirement to stay in another EU country for less than 3 months is to hold a valid national identity card or passport.” (Europa.eu) LONGER THAN 3 MONTHS If expats want to stay longer than 3 months, they may need to register with the government of their host nation and be issued with an EU certificate called a MEU1. This registers their right to stay longer until … LONGER THAN 5 YEARS … After 5 years, expats can apply for MEU3 certification from the EU and register their right to live in their host country permanently. “Under EU regulations you automatically acquire the right of permanent residence if you have lived in your new country legally for a continuous period of five years.” (Europa.eu)

How does the UK Brexit White Paper fit in?

UK Prime Minister Theresa May’s Brexit White Paper of July 2018 refuses to acknowledge the EU right to freedom of movement, which isn’t going to make the plight of British citizens abroad any easier! If Britain is insistent on restricting immigration at home, it can’t very well expect other countries to be rushing to help Brits abroad with residency issues in situ. “The trouble with a lot of these proposals though is that the EU will see them as cherry-picking from the four freedoms that underpin the single market. It has already said that the UK cannot have full access to the single market for goods and not services, especially if it is determined to end the free movement of people.” (bbc.com)

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