Peter Gammon, director, Move with Us, the residential property expert, comments on today’s figures from The Council of Mortgage Lenders and what this means for the UK housing market:

“The continuing pressures on the UK economy are hitting household finances hard but it’s a welcome sign that we haven’t seen an increase in repossessions to reflect the worsening economic situation. Lenders have been more accommodating of borrowers struggling with repayments and we expect the Council of Mortgage Lenders projection of 45,000 repossessions in 2012 to remain on track.

“While the prospect of 45,000 repossessions in 2012 is dire, it is important to remember that this figure is still considerably lower than it was in 2009, and remains far lower than the downturn we saw in the 1990s.

“In the next six months we will see many lenders seeking to bolster their balance sheets and follow the Halifax and others’ lead that have recently taken the controversial step of increasing their variable mortgage rates.  We expect that we will see the effects of this in both buy to let and mainstream lending which could potentially lead to an increase in repossessions in these areas over the next quarter.”

In an earlier version of myself I was a science teacher at Stoke Newington School in North London. While I no longer teach young people about the wonders of photosynthesis turning CO₂ into sugar and how Kreb’s Cycle generates energy for animals by metabolising the carbohydrates created by photosynthesis, I still maintain a keen interest in science and its application in everyday life.

To be honest it’s not that often that my former profession has anything to do with my current role as a financial PR. However, every now and then the two do come together and I am able to get a secret science fix while discussing news items with a client.

You will be pleased to know that this week I was delighted that there was a convergence. Step forward our new client Thomas Miller P&I, managers of the UK P&I Club and part of the Thomas Miller Group of companies.  The UK P&I Club is a mutual insurer that insures merchant ship owners. It’s in the top three in the world and is, needless to say, extremely good at what it does, insuring ships and managing risk on board to reduce claims for its members.

The science bit comes in the types of risk and claims that they insure. For example, this week I learnt that damp coal heats up and self combusts! Evening web surfing on the matter tells me that the Titanic had a coal fire in its huge stores when it left port and it took three days to extinguish. I also discovered that calcium hypochlorite (swimming pool bleach) can also spontaneously explode. The oxygen released by the chemical means that blanketing a fire with foam won’t put the fire out. In maritime risk, solutions to problems, it appears, are often counter intuitive.

The science geek in me gained most satisfaction, however, from the ‘business of insurance’; how the UK P&I Club manages risk and the research into why accidents happen. The business of insurance is not in paying claims, it’s preventing them and in shipping this is of real importance because the risks can be very dangerous and sadly, sometimes fatal. For example powder, such as iron ore if loaded when damp can liquefy through the natural motion of a ship and cause it to capsize and sink taking all hands.

Anticipating risk, therefore has to be a very clever business and is fascinating to see in action. When you analyse where accidents can happen the potential is huge and on an industrial setting of a merchant vessel at sea managing risk is a continuous, and serious occupation.

My varied life as an agency PR man covers many sectors of financial services and one of the most interesting aspects of the job is learning about the different business that we look after. This is all the better when I can combine this with some really clever work in scientific areas and enjoy the very technical nature of my clients work while promoting them to the media.

Roddi Vaughan-Thomas

Palaedino Group, the Geneva based family office and asset management firm, has appointed Broadgate Mainland, a leading financial and professional services PR agency, to manage its PR activities.

Broadgate Mainland will work with Palaedino to promote three of the group’s subsidiaries:

• Palaedino Asset Management (PAM), which specialises in fund due diligence and selection, as well as financial research. PAM offers products including the Axiom UCITS Alternative Investable Index Fund, the first investable index of UCITS hedge funds.

• Alix Capital, provider of the UCITS Alternatives Index (UAI) family of indices and publisher of the UAI quarterly industry report.
• Swiss Precious Metals (SPM), which specialises in the segregated storage of physical precious metals.

Leonardo Castellana, founding partner of Palaedino Group, says: “Broadgate Mainland’s knowledge of our industry and extensive media contacts were the driving factors behind our choice. We are confident they are well placed to help us significantly enhance our reputation as we grow our company further and increase our assets under management.”

Mark Knight, Director at Broadgate Mainland, says: “It is an exciting time for Palaedino Group as they seek to raise the profile of their member companies in the media and among their investor groups. We look forward to working with them, supporting and strengthening their reputation and helping them to fulfil their business objectives”

The account will be managed by Broadgate Mainland’s Mark Knight, Sally Moore, Jayne Adair and Chiara Barreca.

Ends

For further information, please contact:

Broadgate Mainland

Mark Knight or Sally Moore

Telephone: 020 7726 6111

Email: palaedino@broadgatemainland.com  

About Broadgate Mainland

Broadgate Mainland is a leading PR agency that specialises in the financial and professional services industries. We forge close working relationships with our clients to help enhance their reputations and achieve business objectives. Combining media relations, corporate communications and digital PR, we deliver results that drive growth, enhance reputations and build credibility. Among the sectors we have specialist expertise are: Alternatives, asset management (retail and institutional), financial services, professional services, professional development and education, enterprise and innovation, life and pensions and property.

Web: www.broadgatemainland.com

Twitter: @BM_PRNews

• Europe and Japan appear more promising in the second quarter than the US market
• Corporate bonds remain attractive

We still like German stocks, as low valuation indicators suggest promise for the country – and the current dividend yield of 3.5 percent, coupled with a falling euro should also have a supportive effect. History shows that stocks have been an excellent means for navigating around the stealth transfer of assets in times of financial repression, with returns performing significantly above the average inflation rate.

A similar development seems to be taking place in Japan, another strong exporter. While the sharp devaluation of the yen puts the focus onto the Nikkei and Topix, we believe that investors should employ currency hedging as potential gains are sustained almost completely by the possibility of further devaluation.

DWS Investments has been overweight in corporate bonds for a number of months, and will continue to remain so for the foreseeable future. We believe that the corporate bonds sector remains promising and excluding bonds from financial firms, the securities should be well supported. However, even these are not immune to cyclical widening of spreads and, in view of the headline risks, the foot is coming off the gas in the coming months.

For further information, please call or email:
Jayne Adair/Roisin Hynes
Broadgate Mainland
dws@broadgatemainland.com
Tel: +44 (0)207 726 6111

Over three quarters of insurance companies believe that the Solvency II implementation date will be delayed beyond its intended start date of 1 January 2014, according to research conducted by Barnett Waddingham, UK’s leading independent firm of actuaries, pension administrators and consultants.

The survey, which was designed to find out how prepared firms are in all the main areas of Solvency II, showed that of the 39 Insurance companies surveyed only 24% of respondents are confident that Solvency II will be implemented on 1 January 2014.

The survey revealed:

• Insurance companies are getting on top of Pillar 1 – the design, creation and testing stages of the internal model approval process are progressing well but validation and documentation need further work
• 55% of respondents said they are behind schedule with their Own Risk Solvency Assessment (ORSA) but 87% of respondents said that their attention will now be on implementing their ORSA
• The practical implementation aspects of the ORSA were identified as being the most challenging: 71% indicated that they have had problems translating the technical requirements of the ORSA into a practical plan
• 68% of respondents indicated that they will now be devoting more time to meeting reporting requirements
• 45% of respondents do not have the required data readily available and only 26% have started considering the narrative content
• 53% of insurance companies who responded have not yet considered the impact of Solvency II on the management of its defined benefit pension scheme
• The uncertainty surrounding Solvency II has impacted the availability of resources for 97% of insurance companies that completed the survey and 60% responded that it has had a negative impact on their Solvency II project

Kim Durniat, Associate, Barnett Waddingham said:
“Whilst we can see that firms are progressing with the quantitative aspects of Solvency II, it is essential that firms consider more closely what Solvency II means for their business.

“Insurance companies need to review their approach to capital management by looking at their investment strategy, reinsurance arrangements and business mix. It is also concerning the amount of firms that have not yet considered the impact that Solvency II may have on their pension scheme. All departments of insurance companies should be focussed on implementation of Solvency II and not just the Solvency II project teams.”

ENDS

For further information please contact:

Andrew Adam or Melanie Shelley, Broadgate Mainland, 020 7726 6111

Notes to editors:

About Barnett Waddingham

Barnett Waddingham LLP is the UK’s largest independent firm of actuaries and consultants with 50 Partners, over 500 staff (including 100 actuaries), in 7 offices across the UK.

The firm works with corporates, trustees and individuals in both the private and public sector, offering clear advice and a full range of professional advice including trustee consulting, employer pensions advice, pension management and administration, investment strategy, public sector pensions, risk benefits, life and general insurance consulting as well as the provision of SIPPs, SSASs and specialist executive pension plans.

Broadgate Mainland, the leading financial and professional services PR agency has won a competitive pitch process to manage the public relations activities of Thomas Miller Investment, the asset management arm of the 127 year old Thomas Miller Group.

Broadgate Mainland will work with Thomas Miller Investment to develop a PR programme to support the firm’s current business and its expansion into new markets as it develops and broadens its offering.

Des Hogan, head of business development, Thomas Miller Investment said: “After consulting the market on the most suitable agency to help promote the business we selected Broadgate Mainland. The team impressed us with their extensive and in-depth knowledge of our industry and their ability to understand our culture and how we want to engage with the media. ”

Roddi Vaughan Thomas, executive director at Broadgate Mainland said: “Thomas Miller Investment is in a very exciting stage of development and we are looking forward to enhancing its reputation in existing markets and building its reputation in new ones.”

The account will be managed by Broadgate Mainland’s Roland Cross, Roddi Vaughan Thomas and Lizzie Hannaway.

Ends

For further information, please contact:

Broadgate Mainland
Roddi Vaughan Thomas, Elizabeth Hannaway
Telephone: 020 7726 6111
Email: TMI@broadgatemainland.com

About Broadgate Mainland

Broadgate Mainland is a leading PR agency that specialises in the financial and professional services industries. We forge close working relationships with our clients to help enhance their reputations and achieve business objectives. Combining media relations, corporate communications and digital PR, we deliver results that drive growth, enhance reputations and build credibility. Among the sectors we have specialist expertise are: Alternatives, asset management (retail and institutional), financial services, professional services, professional development and education, enterprise and innovation, life and pensions and property.

Web: www.broadgatemainland.com

Twitter: @BM_PRNews

-       New service allows executors to secure equity release loan on estates under probate

Probate property specialist, Move with Us, have developed a secured executor lending service for the probate market, which will enable clients to release some of the equity held within an estate under probate.

The new service is aimed at easing stress and anxiety for executors during what can be a very difficult time, helping them find the most suitable loan secured against the probate property to cover the costs associated with the administration and distribution of probate proceeds.

With an estimated £6 billion* of funds currently tied up in probate property in the UK, it can be a struggle for beneficiaries to free up the funds quickly and administer the estate. Move with Us’ in-depth knowledge and experience in the probate market and its partnership with a specialist broker means executors can benefit from a wide lender selection, competitive interest rates and quality advice.

The secured executor lending service is another addition to the extensive range of products already offered by Move with Us for the probate market which include comprehensive property valuation reports, total management of the probate estate and assistance in selling probate property.

The service is available to solicitors as well as independent customers and the loans can be received before the grant of probate and used to pay inheritance tax.

Russell Cade, Director of Probate at Move with Us, said: “The probate process can be an extremely stressful time for any executor and it becomes even more challenging for those who don’t have the funds necessary to administrate and distribute the probate proceeds to beneficiaries. The new secured executor lending service is a much needed help for executors, offering them the choice and advice from an experienced broker who can point them in the right direction when looking to arrange a loan secured against the probate property.

“We are the first to offer this service to the probate market, which reflects our commitment to providing the best products to match the needs of our clients.”

-ends-

• *UK property transactions 867,000 (127,000 new homes, part exchange and repossession) (Total on market  993,798 according to http://www.home.co.uk)

• 5% of properties on market are for probate – 43,350
• Average property price is currently £160,000 (according to http://www.dailymail.co.uk/news/article-2083030/Average-house-price-fell-160-000-year–drop-expected-2012.html)
• 43,350 X £160,000 = £6,936,000,000
• Properties are usually mortgage free at death. 25% would have a mortgage of 50% LTV so an eighth of the total, leaving £6,069,000,000
  

For further information, please contact:
Sarah Evans Toyne/ Lianne Robinson/ Chiara Barreca, Broadgate Mainland: movewithus@broadgatemainland.com / Tel. 020 7726 6111

About Move with Us:

• We are one of the UK’s leading residential property experts, providing a broad range of simple and effective services to help consumers buy, sell and value their homes. Our aim is to do property, properly.

• We provide free, impartial advice and tools to home buyers and sellers in the UK through our website and consumer helpline.

• Founded in 1997, we have become one of the largest estate agency networks, with more than 1,100 estate agents in the UK, ensuring that we have access to the best local knowledge.

• We work with the best independent, accredited estate agents across the country, providing property instructions and a host of moving services to help provide our customers with a smooth and efficient move.

• Based in Cambridgeshire, we have approximately 300 staff.

Durham Business School (DBS) has appointed Mike Humphreys to the role of Professor of Organisational Studies.

In addition to lecturing on qualitative research methods, Professor Humphreys will be joining Mark Learmonth, Peter Hamilton and Irina Grugulis in a new critical group at the Business School which will be investigating issues of organisational identity. Of particular interest to this group will be his research into the way organisations present themselves versus how they are perceived.

Professor Humphreys is a National Coal Board scholar who graduated in Chemical Engineering in 1970 from Leeds University and subsequently went to work for the NCB. He moved into further education in 1974 teaching chemistry in Shipley and Harrogate before taking up a post in Science Education at Bolton Institute of Higher Education. It was then that he secured his masters and PhD with a speciality in education and management. He is now a respected specialist in the field of organisational studies and has written several papers and articles on organisational identity and management systems.

He has previously worked on technical education projects in Egypt, Turkey, El Salvador and Tanzania completing a PhD by part time study in 1999. An interest in management research and publication led to a lectureship at Nottingham University in 2001. Progressing through Senior Lecturer and Reader he was appointed as Chair in Organisation Studies in 2007.

Speaking of the appointment, Michael Humphreys said: “Having worked closely with Mark Learmonth and others at Durham Business School in the past, I have strong admiration for the quality of their work and research. I am proud to be joining Durham Business School and look forward to exploring the concepts and challenges of organisational identity with my students and colleagues.”

Professor Rob Dixon, DBS Dean and Professor of Management Accounting said: “Organisational and perception challenges loom ever larger in the minds of today’s future business leaders. As such, Durham Business School is pleased to welcome an expert such as Mike to our team, and we look forward to sharing ideas and research with him.”

For media enquiries please contact:
Sarah Evans-Toyne, Alistair Scott, Andrew Adam, Broadgate Mainland, 020 7726 6111
Durham@broadgatemainland.com

About Durham Business School
Durham Business School (DBS) is part of Durham University, one of the oldest established universities in the UK and is one of an elite group of business schools in the UK to hold triple accreditation: AACSB (Association to Advance Collegiate Schools of Business), AMBA (Association of MBAs) and EQUIS (European Quality Improvement System).

The School attracts considerable levels of external research funding and enjoys extensive links within both the business and academic worlds.

DBS is an internationally renowned research-led institution with a network of over 10,000 alumni from more than 100 countries.

For more information on Durham Business School visit: www.dur.ac.uk/dbs

Commenting on the findings of Aviva’s Working Lives report, Barnett Waddingham consultant Malcolm McLean says:

“I am not especially surprised at the lack of awareness amongst the working population at large about auto-enrolment and how it will impact on them as individuals. There is a need to crank up the publicity more widely although it is very likely that this will be given a substantial boost when the first big employers are brought in later in the year and the word starts to spread.

“The suggested level of opt-out at more than a third of low earners is worryingly high and is clearly much more than the Government would have hoped for in setting up what must be seen as its flagship plans. But at this stage we can’t be certain what the actual response is going to be in the final analysis and there has to be a question mark against Aviva’s estimates of opt-out rates if so many of the workers surveyed had no knowledge of auto-enrolment in the first place.

“If at the end of the day the opt-out rates are as bad or worse than these figures suggest, the case for full-scale compulsion will surely have to be seriously considered.”

For further information, please contact: Emma Murphy/Melanie Shelley, Broadgate Mainland on 020 7726 6111 or email BW@broadgatemainland.com

Simon Callow, fund manager, Midas Balanced Growth Fund, MAM Funds, comments on fund changes across equities, fixed interest and alternative assets:

“We believe that the recent broad based rally may be maturing, having been supported by the European Central Bank’s (ECB) long-term refinancing operations and improving economic data out of the US. Consequently, we are reducing risk across all asset classes including equities, fixed interest and alternative assets such as commodities.”

UK equities

• The Kingfisher business is being turned around under the stewardship of Ian Cheshire.
• Legal & General’s strong cash flow was deeply undervalued by the market which was surprised by the large announced increase in the dividend.
• A new position was started in Senior which designs, manufactures and distributes high technology components and systems for principal original equipment producers in the worldwide aerospace, defence, land vehicle and energy markets. The stock provides useful exposure to two underlying themes of the fund – strong global population growth and urbanisation in emerging markets.
• Another new position was started in Debenhams which is being turned around by new management, which we believe will unlock significant value. A renewed focus on cash generation has left the company in a position where it can now recommence dividend payments and initiate a share buyback programme.
• Xstrata provides exposure to one of the fund’s prevailing themes that we believe will be one of the many drivers of capital growth over the medium to long term – strong global population growth in a world of finite resources.

Overseas equities

• A new holding was introduced in the UBS Emerging Market Equity Income Fund as we continue to favour emerging markets over the medium to long term. We also adopt a bias wherever possible towards yield generating assets offering “bankable returns”. This was partly funded by a reduction in one of our higher beta emerging market holdings as we sought to reduce overall risk across the Fund.

 Fixed Interest

• A new holding was started in the Fidelity Emerging Market Inflation Linked Bond Fund. The fund provides inflation protection, additional exposure to emerging markets and offers “bankable returns”. Global inflation is predominantly an emerging market phenomenon which itself is the result of strong economic and population growth in a world of finite resources.

Elsewhere, a new hedge fund strategy was introduced via an investment in the Eclectica Absolute Macro Fund, managed principally by Hugh Hendry. “We are fond of the conservative nature of Hugh and his team and their disciplined approach to risk management.”

Performance is +6.4% year to date, +60.2% over 3 years and +70.6 since launch.

Media enquiries to:
Melanie Shelley/ Roisin Hynes, Broadgate Mainland
mshelley@broadgatemainland.com / rhynes@broadgatemainland.com
Tel: +44 (0)207 726 6111

Notes to editors
MAM Funds plc (MAM) is a leading multi-asset fund management specialist, incorporating Midas Capital Partners and Miton Asset Management fund brands. Both companies are wholly owned subsidiaries of MAM.

Founded in 2001, MAM represents the combined talents and experience of Midas Capital Partners and Miton Asset Management creating a fund management group driven by global asset allocation under the investment direction of Gervais Williams. The group’s fund management teams have a wealth of experience and have won numerous industry awards for their innovative investment processes and performance.

In 2004, MAM joined the Alternative Investment Market. Members of the fund management team invest in their own funds and are significant shareholders in the group. MAM has offices in Liverpool, London and Reading.

www.mamfundsplc.com

Important information
The views expressed are those of MAM at the time of writing, are subject to change without notice and do not constitute investment advice. This article provides information for professional use only and should not be relied upon by retail investors as the sole basis for investment.

Past performance should not be seen as an indication of future performance. The value of investments and any income will fluctuate and investors may not get back the full amount invested. This fund may experience high volatility due to the composition of the portfolio or the portfolio management techniques used.

Before investing you should read the simplified prospectus as it contains important information regarding the fund, including charges, tax and fund specific risk warnings and will form the basis of any investment. Capita Financial Managers, from whom the prospectus, simplified prospectus and application forms are available, act as Authorised Corporate Director of the Fund (0845 606 6182) while MAM is the Investment Manager of the Fund (0151 906 2450).

MAM is a trading name of Midas Capital Partners Limited (reg. no. 4325961) and Miton Asset Management Limited (reg. no.1949322) each incorporated and registered in England and Wales (with their registered office at 10-14 Duke Street, Reading, Berks. RG1 4RU) and authorised and regulated by the Financial Services Authority.

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