Blevins Franks Financial Tips - The Multi-Manager Investment Approach – Specialists vs Generalists

Multi-manager investment enables your portfolio to be managed by several different fund managers, each selected for their expertise in specific market sectors. This ‘open architecture’ approach reduces your reliance on any one investment manager making the right decisions in all conditions, and provides the opportunity to have some of the world’s best mangers looking after your money.

By Rob Kay, Senior Partner, Blevins Franks
Did you see the athletics at the Commonwealth Games in Birmingham this summer? Or at the World or European Championships? And of course we had the Tokyo Olympics last year. It was great to see British success emerging with the likes of Jake Wightman, Keely Hodgkinson, Laura Muir and Eilish McColgan, but interestingly, there are some aspects of what you may have seen that are directly relevant to investing.

Specialists vs generalists – a sporting analogy

A useful way to explain the benefits of a multi-manager investment approach is to compare the difference in performance between a decathlon champion and the individual champion in each event. 

You may have watched the athletics at the Commonwealth Games or European Championships and marvelled at the decathletes’ abilities. They have to be skilled at 10 different disciplines, quite a Herculean task – speed for sprinting, stamina for distance, strength for the field events and technique for events like the pole vault. 

But while the decathlon champion is obviously an all-round athlete performing at an extremely high standard across ten different disciplines, they are frequently beaten by specialists in each of the individual events.

Let’s compare the performance of the decathlon gold medallist at the 2020 Tokyo Olympics (held in 2021) against the individual gold medallists in some of the individual disciplines.

The decathlon champion Damian Warner ran the 100m in 10.12 seconds.  Lamont Marcell Jacobs took just 9.80 seconds in the individual event. The results of the other nine disciplines tell the same story.  For example, Warner threw the javelin 63.44m, while the individual event gold medallist achieved 87.58m.  Warner reached a height of 4.90m in the pole vault compared to the individual champion’s 6.02m.  The specialist performed better than the generalist every time. 

You would not expect a sprinter like Lamont Marcell Jacobs or Usain Bolt to also specialise in pole vault or javelin; specialists tend to be just that – specialists.  There are many situations in life where a specialist performs more efficiently and delivers better results than a generalist, and this is particularly true in investments.

Just because an investment manager is skilled at managing UK equities, for example, does not mean he will be as successful at managing US or Japanese equities.  Managers also tend to specialise in a certain style of investing, and these styles move in and out of favour according to economic and other factors.  They will therefore produce impressive results in certain conditions, but below average ones in others.

Some investors rely on just one or two fund managers to look after their investment capital. But wouldn’t you prefer to have individual specialists managing the various areas of the market your capital is invested in?

Multi-manager investing

Today most investors agree that holding different asset classes and different regions and sectors in their portfolio spreads risk.  Multi-manager funds add a third, and increasingly important, level of diversification to your portfolio. 

You will benefit from a team of specialist managers, as well as diversification across multiple investment styles within each fund, with different managers looking after one style. So one fund could have five or more specialist managers, covering a variety of styles (growth, value, quality, risk management, market oriented etc).

This complementary blending of managers and styles can reduce investment risk, regardless of what style is in favour, and help provide more consistent returns through different market environments.

Just like a strained muscle would hamper the decathlete in all his events, if prevailing market conditions are unfavourable to a single manager’s investment approach, performance may suffer.  Multi-manager spreads risk as it lowers the investor’s dependence on the success of a single manager’s approach.  

Going back to the sporting analogy, in the world of athletics individual champions can easily change from year to year.  The same can happen with investment managers, but the multi-manager firm’s research is designed to find the next champions.  They constantly monitor their funds, so that managers can be changed as and when necessary to improve performance for clients.

Multi-manager investing is not designed to attempt to win a gold medal in just one particular season.  Rather, it aims to produce consistent results, season by season, over a long-term period. 

This investment approach can prove suitable for various investors with different needs.  However, you should always discuss your requirements with a professional financial adviser, as your investment strategy should be targeted to meet your personal objectives.  At Blevins Franks, we combine investment advice with effective tax and estate planning strategies, to maximise wealth preservation opportunities.

These views are put forward for consideration purposes only as the suitability of any investment is dependent on the investment objectives, time horizon and attitude to risk of the investor. The value of investments can fall as well as rise, as can the income arising from them. Past performance should not be seen as an indication of future performance.

Blevins Franks Group is represented in France by the following companies:  Blevins Franks Wealth Management Limited (BFWML) and Blevins Franks France SASU (BFF). BFWML is authorised and regulated by the Malta Financial Services Authority, registered number C 92917. Authorised to conduct investment services under the Investment Services Act and authorised to carry out insurance intermediary activities under the Insurance Distribution Act. Where advice is provided outside of Malta via the Insurance Distribution Directive or the Markets in Financial Instruments Directive II, the applicable regulatory system differs in some respects from that of Malta. BFWML also provides taxation advice; its tax advisers are fully qualified tax specialists.  Blevins Franks France SASU (BFF), is registered with ORIAS, registered number 07 027 475, and authorised as ‘Conseil en Investissements Financiers’ and ‘Courtiers d’Assurance’ Category B (register can be consulted on www.orias.fr). Member of ANACOFI-CIF. BFF’s registered office: 1 rue Pablo Neruda, 33140 Villenave d’Ornon – RCS BX 498 800 465 APE 6622Z.  Garantie Financière et Assurance de Responsabilité Civile Professionnelle conformes aux articles L 541-3 du Code Monétaire et Financier and L512-6 and 512-7 du Code des Assurances (assureur MMA). Blevins Franks Trustees Limited is authorised and regulated by the Malta Financial Services Authority for the administration of retirement schemes. This promotion has been approved and issued by BFWML. 

 You can find other financial advisory articles by visiting our website here

Blevins Frank Financial Tips - Inflation Concerns Today and Planning for the Future

Inflation is causing concern in across the EU and in the UK. It has been climbing steadily since last summer, hitting over 8% in the Euro area in June and July and expected to climb to 13% in the UK. Even low levels impact your spending power over time, so take steps now to protect your savings and retirement income for your long-term future.

Inflation has been a major news story this year, but we don’t need to read news reports to know the cost of living is going up, we’re only too aware with our weekly shops and electricity bills.

This follows 10 years of benign, easy to ignore inflation, but in fact we were not immune from it then. It is always there, slowly eroding the spending power of the Euro in our pocket and we should always be vigilant about how it impacts our financial security through retirement.

Although this inflation surge is lasting considerably longer than first anticipated, and is likely to get worse before it gets better, it is not still not expected to be long-term. But hopefully people will view it as an eye opener and take this long-term threat more seriously now.  We cannot predict what inflation will be in ten or twenty-years’ time, but we do know that even low levels can seriously reduce your spending power over time if your money does not grow at the same rate.

The Eurozone

The Harmonised Index of Consumer Prices (HICP) was 2.2% in July 2021. This July it hit 8.9%, another record for the single currency.

French consumer prices, as measured by the local Consumer Price Index (CPI) reached 6.1% in July, up from June’s 5.8%.  The acceleration of service prices linked to the summer period has contributed to the increase, as have food prices. Energy prices, however, slowed.

The UK
In the UK, the Consumer Price Index reached 10.1% in July, up from 9.4% the previous month. The July figure was the highest annual CPI inflation rate in the National Statistic series, which began in January 1997. Rising food prices made the largest upward contribution.

Will inflation remain high?

When prices began rising last summer, that was largely caused by the ‘base effect’ (inflation the previous year had been unusually low in the pandemic) and supply difficulties as economies exited from lockdowns. However, the crisis in Ukraine then exacerbated the issues, particularly with energy prices escalating though uncertainty about supply chains has also pushed prices up.

In July, the European Commission revised its Eurozone 2022 inflation forecast upwards, from 6.1% for the year to 7.6% – peaking at 8.4% in the third quarter. It will then ease to 4% for 2023 as a whole, falling below 3% in the last three months of the year.

Its Summer Economic Forecast explains:

“Russia's invasion of Ukraine has put additional upward pressures on energy and food commodity prices. These are feeding global inflationary pressures, eroding the purchasing power of households and triggering a faster monetary policy response than previously assumed.”

In the UK, the Bank of England has issued bleaker forecasts. On 4 August it warned that it now predicts inflation to hit 13% in the last quarter of the year, and that it will “remain at very elevated levels throughout much of 2023, before falling to the 2% target two years ahead”.

In response to inflation, the Bank of England has raised its interest rate six consecutive times since December 2021. At its latest Monetary Policy Meeting on 3 August, the committee voted 8-1 to increase the bank rate by 0.5 percentage points, to 1.75%. This is the highest since December 2008 – but still a long way below inflation.  

Inflation and your savings and retirement income

No-one is immune from inflation.  We all need to plan to protect our savings and future income from the rising cost of living. Making sure your money lasts as long as we do should be an integral part of our financial planning for retirement.

If you’re retiring now at age 60, you need to plan for over 30 years of retirement. Unless your savings grow each year, they will buy you considerably less as the years go by.  

As a basic illustration, if you have €50,000 in a current account with no growth, and inflation is 3% every year, after 10 years its value will have fallen to around €37,000. After 20 years it’s around €27,500 and after 30 just €20,555.  That’s a 59% reduction in purchasing power.

 You therefore need to invest in assets that can be expected to produce enough growth to at least keep up with inflation.  As we know from the last decade, bank interest rates cannot be expected to do this – in fact, many savers have been earning negative real rates of return.

While you may become more averse to investment risk in retirement, remember that inflation is also a big risk to your savings. You can reduce investment risk to comfortable levels by obtaining an objective calculation of your attitude to risk, then building a suitable well-diversified portfolio around your risk tolerance, time horizon, circumstances and objectives.

Holding your investment portfolio within an arrangement that is tax efficient in your country of residence helps protect your capital from unnecessary taxation as well as inflation. Review your financial planning annually to have peace of mind about your future, then get back to enjoying your retirement years.

HICP/CPI inflation data is at 25 August 2022.
By Rob Kay, Senior Partner, Blevins Franks

Blevins Franks Group is represented in France by the following companies:  Blevins Franks Wealth Management Limited (BFWML) and Blevins Franks France SASU (BFF). BFWML is authorised and regulated by the Malta Financial Services Authority, registered number C 92917. Authorised to conduct investment services under the Investment Services Act and authorised to carry out insurance intermediary activities under the Insurance Distribution Act. Where advice is provided outside of Malta via the Insurance Distribution Directive or the Markets in Financial Instruments Directive II, the applicable regulatory system differs in some respects from that of Malta. BFWML also provides taxation advice; its tax advisers are fully qualified tax specialists.  Blevins Franks France SASU (BFF), is registered with ORIAS, registered number 07 027 475, and authorised as ‘Conseil en Investissements Financiers’ and ‘Courtiers d’Assurance’ Category B (register can be consulted on www.orias.fr). Member of ANACOFI-CIF. BFF’s registered office: 1 rue Pablo Neruda, 33140 Villenave d’Ornon – RCS BX 498 800 465 APE 6622Z.  Garantie Financière et Assurance de Responsabilité Civile Professionnelle conformes aux articles L 541-3 du Code Monétaire et Financier and L512-6 and 512-7 du Code des Assurances (assureur MMA). Blevins Franks Trustees Limited is authorised and regulated by the Malta Financial Services Authority for the administration of retirement schemes. This promotion has been approved and issued by BFWML. 

You can find other financial advisory articles by visiting our website here

Blevins Franks Financial Tips - The Cost of Living Longer

The Cost of Living Longer

By Rob Kay, Senior Partner, Blevins Franks

By making the lifestyle choice to retire in France, you will want to make the most of what the country has to offer, hopefully well into the future.

This may be longer than you expect. Thanks to medical advances over the years and a better quality of life, people are generally living longer than the previous generation. French statistics show that life expectancy for males currently aged 65 is 84, while for women it’s higher at 88. Of course, these are just averages, many of us will live longer, maybe much longer– it has become more common to hear of people reaching their 100th birthday.

Living to a ripe old age does sound rather appealing, provided we are healthy enough. Much more time to watch our grandchildren grow up and much more time to enjoy our well-earned retirement in France. There are, however, implications at both personal and government levels, with the key issue being: can we afford it?

The longer we live, the longer we need our savings to last in order to live as comfortably as we are used to. For peace of mind, assess whether your resources are on track to last throughout your lifetime.  Here are the key considerations.

Income and inflation

Starting with the big topic of the moment – inflation. We are getting used to headlines about rising inflation and the levels we have seen this year are certainly an eye-opener on how it can impact our monthly living costs.  But even though inflation will hopefully start to come down before too long, even low levels, compounded year after year, will reduce how far a fixed income will stretch in the future.

Say, for example, you spend €5,000 a month. Assuming an inflation rate of 3% a year, in 10 years’ time you could need €6,720 a month to maintain the same spending, and €9,030 in 20 years. So your capital and income would need to grow by the same amount to maintain the same standard of living.

Making your savings and investments last

Many retirees favour low-risk, ‘safer’ investments like bank deposits in their later years. But with potentially 30 years or more to fund in retirement, this can actually be a risky strategy.

British expatriates also need to factor in exchange rate risk. If you receive income in pounds while spending euros in your daily life, depending on currency movements you may find your money does not go as far as it once did, even without the inflation factor.

By following some key investment principles and taking specialist guidance, you can invest capital to give it the opportunity to keep pace with inflation, while keeping risk to a comfortable level.  Start by establishing your risk profile then carefully build a well-diversified investment portfolio to suit your circumstances, needs and objectives.   Look for investment arrangements which provide some currency flexibility to try and avoid the exchange rate risk.

You could get currency flexibility through some ‘assurance-vie’ policies, a specialised form of life assurance that allows French residents to hold a range of investments in a highly tax-efficient package. There are many different assurance-vie options based in various jurisdictions, not just France, and not all offer currency flexibility, so choose carefully. 

A taxing problem – not just for governments

Rising life expectancy is also expensive for governments. The higher the proportion of older people in a population, the greater the costs of services like state pensions and healthcare – and the lower the number of taxpayers that can fund it. The solution usually lies in pension or healthcare reforms and tax increases to finance these escalating expenses.  The issue has been exacerbated over recent years with the amount of money governments have had to spend as a result of covid.

Higher taxation can be a considerable threat to your financial security in retirement.  Just like inflation it erodes your income, and in France we have social charges on top of income tax, giving us quite a high tax burden.   This is where personalised tax planning is vital to make use of available opportunities – in France, the UK, or elsewhere – to ensure you do not pay more tax than necessary.

With many of these arrangements you can combine your tax and investment planning in one exercise, allowing you to tackle the twin threats of tax and inflation at the same time.

Getting the most from your pensions

Pensions are often the key to financial security in retirement, so take care to do what is right for you.   You need to consider all your options, carefully weighing the pros and cons. Look at your income needs, investment options and risk, currency risk, what happens to the balance when you die and the tax implications.

There may be ways for expatriates to make pension funds go further, but before making any decisions, take regulated advice to avoid pension scams and establish the best approach for your particular objectives and circumstances.  You may be best advised to leave your pension where it is.

Leaving wealth behind

If you want to leave a lasting legacy for your family, you have to make sure you do not spend it all in your own lifetime – without compromising your quality of life today.  A strategic financial planning approach – that considers estate planning alongside investing and tax planning – can prove invaluable here.

Estate planning in France is complex, with succession tax based on the beneficiary and succession law imposing forced heirship.  If your family includes children from previous marriages, be particularly careful to ensure everyone benefits as you wish them to.

Whatever your stage of life, good financial planning can help you afford the lifestyle you want, for as long as you need, so you can focus on enjoying your retirement in France.

This article should not be construed as providing any personalised investment or taxation advice. You should take advice for your circumstances.

Blevins Franks Group is represented in France by the following companies:  Blevins Franks Wealth Management Limited (BFWML) and Blevins Franks France SASU (BFF). BFWML is authorised and regulated by the Malta Financial Services Authority, registered number C 92917. Authorised to conduct investment services under the Investment Services Act and authorised to carry out insurance intermediary activities under the Insurance Distribution Act. Where advice is provided outside of Malta via the Insurance Distribution Directive or the Markets in Financial Instruments Directive II, the applicable regulatory system differs in some respects from that of Malta. BFWML also provides taxation advice; its tax advisers are fully qualified tax specialists.  Blevins Franks France SASU (BFF), is registered with ORIAS, registered number 07 027 475, and authorised as ‘Conseil en Investissements Financiers’ and ‘Courtiers d’Assurance’ Category B (register can be consulted on www.orias.fr). Member of ANACOFI-CIF. BFF’s registered office: 1 rue Pablo Neruda, 33140 Villenave d’Ornon – RCS BX 498 800 465 APE 6622Z.  Garantie Financière et Assurance de Responsabilité Civile Professionnelle conformes aux articles L 541-3 du Code Monétaire et Financier and L512-6 and 512-7 du Code des Assurances (assureur MMA). Blevins Franks Trustees Limited is authorised and regulated by the Malta Financial Services Authority for the administration of retirement schemes. This promotion has been approved and issued by BFWML. 

You can find other financial advisory articles by visiting our website here

Blevins Franks Financial Tips - Is it Time to Consider Downsizing your Home?

There are various financial benefits to moving to a smaller property. With careful planning you could unlock retirement funds and potentially tax-efficient income, while still leaving your family and heirs a lasting legacy. France offers fantastic property opportunities in outstanding surroundings, so it is unsurprising that many Britons choose to retire to their own place on the Riviera.

Whether you buy your main home here or just for somewhere to holiday, property may be your biggest asset, with the potential to provide a substantial return on your initial investment over time. For many, their home is also a legacy to help secure the financial future of children and other heirs.

However, there are risks in relying on bricks and mortar for your wealth. After all, you cannot fully realise the financial benefits of a property while you are still living in it. Compared to other investments, property can also prove very costly to maintain.

Size does matter

Generally, the larger the property, the more expensive the running costs. Mortgage payments, rates, utility bills, plus building and maintenance expenses can all add up to generate a relatively high ongoing burden. If you are retired with a reduced or limited income, this can be especially draining on your resources, particularly if you own more than one property.

Affording retirement

With today’s increased life expectancy, you may need your existing wealth to stretch to ten, twenty, or even thirty plus years in retirement. Are your pensions, savings and investments on track to sustain the lifestyle you want for as long as you need? Are they structured to protect you from long-term inflation and provide the increased income you may need in the future as the cost of living rises?

Many people find themselves in an ‘asset rich, cash poor’ situation, owning considerable physical wealth such as property but with substantially less disposable income. Expatriates in particular tend to hold on to UK property in addition to their French home.

While property can be a solid investment, it locks your money away in a highly illiquid way. If you want access to your capital, you may not be able to sell easily, nor for the right price. Also, there is risk in tying your funds up in one asset class – if the value of property drops, so does your investment. 

Property offers potential leveraging opportunities – such as freeing up cash through equity release if this is available – but like any debt arrangement, this comes with costs and risks. For retirees looking to shed debt and leave something behind for children and grandchildren, more borrowing is not the answer.

Benefits of reinvesting your capital

Downsizing property can help increase your accessible wealth, but it needn’t be a compromise when it comes to investment growth. By reinvesting in suitable investment funds, for example, you can still invest in real estate but alongside other assets (equities, bonds etc.) to reduce risk through diversification. And, unlike immoveable property, if you require small amounts of cash you can just sell the amount you need, not the whole investment.

A specialist adviser can help you explore investment arrangements that suit your particular circumstances, goals and risk appetite while being tax-efficient for France. You could also unlock other benefits that property cannot offer, such as a regular income and currency flexibility.

When it comes to estate planning too, there are more opportunities to reduce succession tax for your heirs on investment capital than with real estate.

Reducing taxation

Wherever your home is, charges such as stamp duty and capital gains tax generally increase with the property’s price tag. Higher-value homes can also tip you over the threshold for wealth tax, where applicable, as well as increasing the inheritance tax bill for your heirs.

In France, owning real estate assets worth over €1.3 million attracts annual wealth taxes of between 0.5% and 1.5% (over an €800,000 allowance). For French residents, this applies to worldwide real estate, including UK property.   Since 2018, wealth tax no longer applies to capital investments, which is a considerable tax advantage over property.  

Wealth tax rates seem relatively low, but when applied to property values this can add thousands to your tax bill. By reducing the amount of tax payable, you can make your money go further in your lifetime and maximise the value of your legacy.

Ultimately, while you want to make sure your family are looked after when you are gone, do not forget your own needs. Take personalised, cross-border advice to establish an investment and estate planning strategy that can secure a secure retirement for you in France today and a lasting legacy for future heirs.

Tax rates, scope and reliefs may change. Any statements concerning taxation are based upon our understanding of current taxation laws and practices which are subject to change. Tax information has been summarised; individuals should seek personalised advice.

Blevins Franks Group is represented in France by the following companies:  Blevins Franks Wealth Management Limited (BFWML) and Blevins Franks France SASU (BFF). BFWML is authorised and regulated by the Malta Financial Services Authority, registered number C 92917. Authorised to conduct investment services under the Investment Services Act and authorised to carry out insurance intermediary activities under the Insurance Distribution Act. Where advice is provided outside of Malta via the Insurance Distribution Directive or the Markets in Financial Instruments Directive II, the applicable regulatory system differs in some respects from that of Malta. BFWML also provides taxation advice; its tax advisers are fully qualified tax specialists.  Blevins Franks France SASU (BFF), is registered with ORIAS, registered number 07 027 475, and authorised as ‘Conseil en Investissements Financiers’ and ‘Courtiers d’Assurance’ Category B (register can be consulted on www.orias.fr). Member of ANACOFI-CIF. BFF’s registered office: 1 rue Pablo Neruda, 33140 Villenave d’Ornon – RCS BX 498 800 465 APE 6622Z.  Garantie Financière et Assurance de Responsabilité Civile Professionnelle conformes aux articles L 541-3 du Code Monétaire et Financier and L512-6 and 512-7 du Code des Assurances (assureur MMA). Blevins Franks Trustees Limited is authorised and regulated by the Malta Financial Services Authority for the administration of retirement schemes. This promotion has been approved and issued by BFWML. 

You can find other financial advisory articles by visiting our website here .

Blevins Franks Financial Tips - How to Take Control of your Finances in an Uncertain World

The last few years have emphasised how uncertain life can be; how we never know what is around the corner.  Brexit and the pandemic have now been followed by the worrying and upsetting events in Ukraine.  Life feels more uncertain again. 

This perhaps makes it more important for us to take control where we can, as much as we can, particularly when it comes to our family’s long-term future and security.  So here we take a look at the key wealth management considerations we should review from time to time. 

Pension planning

For most of us, our pension funds are key to our long-term financial security, so great care must be taken to do what is right for you and your family.  The UK pension freedoms may no longer be ‘new’, but they can still cause uncertainty when deciding what to do with yours, and each option has pros and cons. 

If you are planning to spend your retirement years in France, you also need to establish the local tax implications and what works best for you as a France resident.

Many expatriates have chosen to transfer UK pensions to a Qualifying Recognised Overseas Pension Scheme (QROPS) for the advantages they can offer, such as income and currency flexibility. But they do not suit everyone – you may find it more beneficial, for example, to reinvest UK pension funds into French-compliant investment arrangements, or even leave your UK pension where it is.  Also, the UK has recently made changes which make transferring to QROPS more difficult. 

In any case, you should always take personalised, regulated pensions advice to ensure you take the best course of action for your particular circumstances.

Your savings and investments 

It is impossible to control what may or may not happen in the markets in future, what geopolitical events may cause volatility or prices to rise; we can’t know what interest rates will be five, ten, or twenty years from now. 

But we can take steps to build an investment portfolio that:

·      is based around our risk profile, circumstances, time horizon and objectives; and 

·      includes suitable asset allocation and diversification to control risk; and 

·      is designed to provide capital growth over the longer term to beat inflation so you can maintain your spending power through retirement. 

Geopolitical events, like those we’re seeing at the moment, can cause significant market turbulence which can be unsettling for investors, but that does not mean it’s the time for knee-jerk reactions or short-term changes.  

History has shown that ‘timing’ markets is incredibly difficult, especially where out-sized market movements are involved. And in timing, an investor needs to get it right twice – when to encash some of your investments and when to get in the market. Getting one right is rarely achieved, as the news has already arrived by the time you can look to act (so markets will already have reacted). The same also applies when markets move sharply upward as we saw after the initial covid news in 2020.  

Investing is a marathon not a sprint, so being patient and sticking with the plan can pay off. 

Estate planning

While we cannot avoid death, with good estate planning we can control who receives our assets and when. Is your legacy on track to go to your chosen heirs according to your wishes and with minimal taxation? Take care to understand the succession laws and inheritance tax in France and anywhere else you have assets and heirs, as well as the pros and cons of using the EU succession regulation ‘Brussels IV’ to override local ‘forced heirship’ rules.

You need a strategy that achieves your wishes while making the process straightforward and tax-efficient for your heirs. And don’t forget your own needs; consider the tax implications to find the optimum solution for your wealth during your lifetime too.  

Tax planning

The way you structure your assets and wealth can make a significant difference to your tax bill. You need to make sure your arrangements are structured appropriately for your life in France as well as your particular aims, circumstance, goals and risk appetite.

Are you taking advantage of tax-efficient structures available in France? Besides tax savings, these may offer additional benefits such as currency and income flexibility and estate planning advantages. 

Ultimately, cross-border tax and financial planning is complex. While you can do some groundwork yourself, you will benefit from talking to a specialist adviser with in-depth knowledge of the French tax regime and its interaction with UK rules. They can help you take advantage of available tax, investment, pensions, and estate planning opportunities to ensure you do what works best for you and your family, today, tomorrow and the future. 

By Rob Kay, Senior Partner, Blevins Franks 
Link to Rob Kay profile / contact page

You can find other financial advisory articles by visiting our website here

Tax rates, scope and reliefs may change. Any statements concerning taxation are based upon our understanding of current taxation laws and practices which are subject to change. Tax information has been summarised; individuals should seek personalised advice.

Blevins Franks Group is represented in France by the following companies:  Blevins Franks Wealth Management Limited (BFWML) and Blevins Franks France SASU (BFF). BFWML is authorised and regulated by the Malta Financial Services Authority, registered number C 92917. Authorised to conduct investment services under the Investment Services Act and authorised to carry out insurance intermediary activities under the Insurance Distribution Act. Where advice is provided outside of Malta via the Insurance Distribution Directive or the Markets in Financial Instruments Directive II, the applicable regulatory system differs in some respects from that of Malta. BFWML also provides taxation advice; its tax advisers are fully qualified tax specialists.  Blevins Franks France SASU (BFF), is registered with ORIAS, registered number 07 027 475, and authorised as ‘Conseil en Investissements Financiers’ and ‘Courtiers d’Assurance’ Category B (register can be consulted on www.orias.fr). Member of ANACOFI-CIF. BFF’s registered office: 1 rue Pablo Neruda, 33140 Villenave d’Ornon – RCS BX 498 800 465 APE 6622Z.  Garantie Financière et Assurance de Responsabilité Civile Professionnelle conformes aux articles L 541-3 du Code Monétaire et Financier and L512-6 and 512-7 du Code des Assurances (assureur MMA). Blevins Franks Trustees Limited is authorised and regulated by the Malta Financial Services Authority for the administration of retirement schemes. This promotion has been approved and issued by BFWML. 

Blevins Franks Financial Tips - Resolve to Review Your Financial Planning for 2022

Take time to check your tax planning, investments, pensions and estate planning are all on track to protect your family’s long-term wealth. 

The New Year is a time when most of us take stock of our situation and set goals to improve our health, happiness, lifestyle and wealth. This year, make it one of your resolutions to check your financial planning is on track to meet your needs and protect your family’s long-term financial security.

Why regular reviews are important 

Regular reviews help keep your financial affairs compliant and up to date. Tax rules or financial regulations can change at any time, which may affect the tax efficiency – or even legality – of your existing arrangements. There may also be new opportunities that you could find beneficial… but only if you know about them. And with Brexit still relatively new, and more potential changes on the way, it is important to keep ahead of any developments that may affect you, for better or worse. 

You also need to consider if any changes in your personal and family circumstances mean you should adjust your arrangements. Did you welcome any new family members or are there any upcoming major life events – such as retirement, relocation or divorce – that may warrant a rethink of your plans? 

For a truly effective review, and to ensure it is suitable for your life in France, consider how your tax planning, investments, pensions and estate planning work together. 

Tax planning

You should first make sure you know where you are resident for tax purposes, especially if you are new to France or spend time in both countries. You then want to structure your investments and wealth in the most suitable way to minimise taxation – in France, the UK and wherever you have financial interests – while still meeting your obligations. 

In today’s world of ‘automatic exchange of information’, it is more important than ever to get it right. Your local tax office receives financial information about your offshore assets without having to even ask for it. 

Cross-border tax planning is complex, so take specialist advice to achieve peace of mind and potentially secure significant tax savings.

Savings and investments

If you do not already have a financial plan in place for France, you need to take a fresh look at your savings and investments. Are they actually better suited to a UK resident? Do they meet your risk/reward appetite? Are you taking advantage of suitable tax-efficient opportunities in France?

Successful investing is about having a strategy specifically based around your personal circumstances, time horizon, needs, aims and risk tolerance. You should ensure you have adequate diversification to avoid over-exposure to any given country (including the UK), asset type, sector or company. Explore investment structures that allow multi-currency flexibility to help minimise exchange rate risk.  

Pensions

For most people, their pension is key to their financial security through retirement, so deciding what to do with yours could be one of the most important financial decisions you make.  

So take the time to explore all the available options, weighing the pros and cons and considering the tax implications and potential benefits in France. 

Make sure you take regulated advice to protect your retirement benefits from pension scams and do what is right for your personal circumstances and aims. 

Estate planning  

It is vital to review your estate planning when living in France.  Here in France both succession law and tax work very differently to the UK. 

Are you aware, for example, that France’s ‘forced heirship’ rules could automatically pass a significant proportion of your worldwide estate to your direct family, whatever your intentions? You can specify in your will for the EU regulation ‘Brussels IV’ to apply relevant British law to your estate instead, but take care to understand your options and any tax implications. 

Your estate plan should be set up to achieve your wishes in the most tax-efficient way possible. 

To bring all these complex elements together and ensure you have not missed out on any suitable opportunities, take expert, cross-border advice. Spending time on a financial health-check now can secure peace of mind that you and your family are in the best position to enjoy a prosperous 2022 and beyond.    

The tax rates, scope and reliefs may change. Any statements concerning taxation are based upon our understanding of current taxation laws and practices which are subject to change. Tax information has been summarised; individuals should seek personalised advice.

Blevins Franks Group is represented in France by the following companies:  Blevins Franks Wealth Management Limited (BFWML) and Blevins Franks France SASU (BFF). BFWML is authorised and regulated by the Malta Financial Services Authority, registered number C 92917. Authorised to conduct investment services under the Investment Services Act and authorised to carry out insurance intermediary activities under the Insurance Distribution Act. Where advice is provided outside of Malta via the Insurance Distribution Directive or the Markets in Financial Instruments Directive II, the applicable regulatory system differs in some respects from that of Malta. BFWML also provides taxation advice; its tax advisers are fully qualified tax specialists.  Blevins Franks France SASU (BFF), is registered with ORIAS, registered number 07 027 475, and authorised as ‘Conseil en Investissements Financiers’ and ‘Courtiers d’Assurance’ Category B (register can be consulted on www.orias.fr). Member of ANACOFI-CIF. BFF’s registered office: 1 rue Pablo Neruda, 33140 Villenave d’Ornon – RCS BX 498 800 465 APE 6622Z.  Garantie Financière et Assurance de Responsabilité Civile Professionnelle conformes aux articles L 541-3 du Code Monétaire et Financier and L512-6 and 512-7 du Code des Assurances (assureur MMA). Blevins Franks Trustees Limited is authorised and regulated by the Malta Financial Services Authority for the administration of retirement schemes. This promotion has been approved and issued by BFWML. 

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Edmond de Rothschild Investment Convictions July 2021 - Reflection On The Year So Far – From Gloom To Boom!

“As we are entering the second half of the year, it is time to pause and reflect on the year so far. Since January, we witnessed a slow but accelerating roll-out of vaccines. As more people were vaccinated and economies re-opened we saw an acceleration of global economic growth. This in turn provided a boost to company earnings and lifted equity markets and other risky assets.”

The second half of the year is likely to be more challenging. Indeed, positive news about the reopening of the economies are now largely priced in and analysts have already revised up company earnings. Moreover central banks will start thinking about reducing their supportive policies now that the economies are re- covering from the pandemic. Read more at the link..

INVESTMENT CONVICTIONS July 2021 (pdf download)

Our New Platinum Partner Edmond de Rothschild (Monaco) is a Conviction-Driven Investment House Founded on the Belief that Wealth Should be Harnessed to Build the World of Tomorrow

EDMOND DE ROTHSCHILD (MONACO)

We welcome Edmond de Rothschild (Monaco) - a conviction-driven investment house founded on the belief that wealth should be harnessed to build the world of tomorrow.

“As a family-owned Group, our independence enables us to take the long view, to invest alongside our clients and to create brand new financial solutions.

This approach has helped us become a key international player in private banking and asset management as well as corporate finance, real estate and private equity.

Our conviction-driven investment house is also one of the pillars of a wider ecosystem of entrepreneurial, philanthropic and sporting activities that make our mission to be bold builders of the future an authentic one.

Our Group is growing and will continue to grow while preserving the values of our family, which has always staked its name on the service we provide to each and every client.”

Ariane and Benjamin de Rothschild

View the 2021 Group Brochure

EDMOND DE ROTHSCHILD (MONACO)
Les Terrasses
2 avenue de Monte Carlo
BP 317
98006 Monaco Cedex
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