Twenty volunteers from Centurium Bank used their annual volunteer day to help with the running of the Hospice Isle of Man shop in Duke Street from 5-7 March. Volunteers also got involved in the behind-the-scenes operation of the store, by running deliveries to shops around the island, and managing stock at the main warehouse.

The aim of the three-day takeover was to support Hospice Isle of Man in increasing awareness of their newest store in Duke Street, Douglas and raise essential funds. It also provided the opportunity for Centurium Bank staff to give back to the local community.

Figures from the store indicated the takeover helped create a significant uplift with store sales at the Duke Street shop increasing by 236% across the three days, when compared to the shop average.

Andrew Halsall, Head of Private Banking in the Isle of Man, said: “Our aim from the start was to help Hospice Isle of Man raise as much awareness for the store as possible while supporting our staff giving back to our local community. We are delighted that we’ve been able to tick both of these boxes in addition to raising funds, making the takeover a huge success for both sides. Our thanks goes to the Hospice Isle of Man teams and volunteers for their support throughout the initiative.”

John Knight, CEO at Hospice Isle of Man, said: “With Centurium Bank’s support we saw our average shop sales increase significantly. Over 15% of the income needed to fund the continuous running of Hospice Isle of Man comes from the hospice shops around the island. This takeover was the first of its kind for us and highlights how, with a bit of innovative thinking, passion and support from the local community and volunteers, we can truly make an impact. Thank you to Centurium Bank’s team of volunteers for their time and enthusiasm, making this a great success and helping to raise valuable funds for Hospice Isle of Man.”

All funds raised during the takeover will go towards Hospice Isle of Man, helping the charity continue to provide a full-service care provision to the island’s community.

The post Centurium Bank takeover helps raise essential funds for Hospice Isle of Man appeared first on Centurium Bank.

The month was not without it challenges though, particularly in the commercial real estate and regional banking sector which came under scrutiny at the beginning of the month. Concerns surfaced within New York Community Bancorp after they reported losses on the 31 January that were driven by expected loan losses in commercial real estate. Although seemingly isolated at present, it has raised the prospect that the full impact of higher interest rates may be yet to materialise, particularly given the substantial debt that needs refinancing over 2024 and 2025.

Despite these concerns leading to a degree of volatility, investors remained glass-half-full, after a promising jobs report revealed strong payroll growth in the current month, as well as positive upward revisions in the two previous months, allowing them to revel in the prospect of broader economic resilience. Of course, with one eye squarely focused on growth dynamics, the other invariably latched onto the latest developments within the inflationary landscape. It was here where investors broke poise slightly, as a hotter-than-expected reading forced some to rethink their projected path for interest rate cuts. The result having negative implications for the bond market, where climbing yields led to some capital loss.

In terms of market returns, global equities (+4.7%) were positive in February, however there was a large variation across regions. Japan (+5.5%) and the US (+5.3%) were by far the best performing areas as both regions saw their primary stock indices reach all-time record highs. The UK (+0.7%) finished the month in positive territory, but with returns far more muted in comparison. In terms of equity styles, growth stocks (+6.0%) outperformed value (+2.6%), and small-cap stocks (+3.3%) lagged large caps (+4.7%). This was reflected in sector performance, with consumer discretionary (+7.9%) and information technology (+6.2%) the strongest two sectors, while utilities (-0.4%) lagged significantly.

Fixed income markets were also mixed, with higher quality government bonds underperforming the lower quality credit space. The higher-than-expected inflation reading pushed back market expectations for rate cuts and forced bond yields to rise, meaning that the global aggregate bond index fell -0.7% over the month. Strong macro data dominated the narrative on the credit side however, meaning that the risker global high yield (0.5%) was positive over February.

In the real assets space, both global real estate (-0.4%) and global infrastructure (+0.0%) underperformed, reflecting their sensitivity to rising interest rate expectations. Commodities displayed mixed performance over the month, such that whilst the broad index was negative (-1.5%), there was significant divergence within the index. Picking out the highlights, crude oil (+2.9%) rose sharply on the back of developments in the Middle East, whereas agriculture (-4.4%) finished the month in negative territory.

The post February 2024 Commentary appeared first on Centurium Bank.

This is one of the reasons why women in finance are more important than ever. In an article for Gallery Jersey, Anna Slater, a Paraplanner at Centurium Bank, shares her experience and insights on being a young woman in a male-dominated industry.

Anna discusses how she uses traits such as empathy and listening to create positive outcomes for her clients, and encourages other women to embrace their strengths and skills and succeed in financial services.

Click here to read the full issue.

The post Women in finance: Thriving in a traditionally male-heavy industry appeared first on Centurium Bank.

Through the acts of giving, sharing, and supporting, we are able to contribute a potent force for positive change. Not only does it provide the opportunity to raise platforms and amplify voices but also to highlight initiative stories, struggles, and triumphs.

On a personal note, supporting causes that are important to you also feels good!

As we delve into the power of philanthropy, I have highlighted a few steps below that we can all take to address change this International Women’s Day:

1. Donate generously

Consider making a donation to organisations that champion women’s rights. Whether it’s a local shelter, a global advocacy group, or a grassroots initiative, your contribution matters. Remember, even small donations collectively create significant impact. And, of course, donations of time and expertise are equally valuable.

2. Raise visibility

Use your voice to raise awareness about women’s causes. Share stories, statistics, and success stories on social media. Highlight the work of female-led nonprofits and encourage others to get involved.

3. Support female-focused charities

IWD provides a unique opportunity to fundraise for female-focused charities. These organisations work tirelessly to uplift women, provide essential services, and create lasting change. Your support can make a world of difference. You can find details of a few of these great charities on the official International Women’s Day website here.

4. Advocate for gender equality.

Philanthropy isn’t just about money, it’s about advocacy too. Engage in conversations, challenge stereotypes, and advocate for policies that promote gender equality. Be a vocal ally for women’s rights.

World-renowned feminist Gloria Steinem once said, “The story of women’s struggle for equality belongs to no single feminist, nor to any one organisation, but to the collective efforts of all who care about human rights.”

This quote wonderfully summarises the notion that change belongs to everyone, everywhere. If we all make the decision to take action, we can collectively make a big difference.

Clients of Centurium Bank can get in touch with their private banker directly to understand how we can help you on your philanthropic journey, or you can phone +44 (0)7488 645000 to speak to our Client Services team.

The post The power of philanthropy this International Women’s Day appeared first on Centurium Bank.

In October of last year, our Head of Wealth Planning, Simon Prescott, considered how to navigate the emotional impact of a permacrisis and how to avoid being pressured by external influences. If you haven’t already, I recommend reading Simon’s article.

In this article, I’ll expand on Simon’s points, and consider the wider impact the permacrisis has on markets, when you should invest, and what we can expect to shape the markets for the year ahead.

A look back at the past two decades

Over the past two decades, we have witnessed numerous significant global events and crises. However, it is worth considering how much these events have affected the stock market and, in turn, your investments.

You will see from the below graph (which uses a portfolio in the middle of our risk range as an example) that between 2005 and 2023 the value of this investment continued to rise despite the volatility in the market over this timeframe.

If you had invested in 2005, this graph shows where you would be today if you had held on through the turbulence of the past two decades.

During this period, the world witnessed the global financial crisis, Brexit, and the spread of COVID-19. In addition, numerous conflicts and significant political elections also took place. Despite these events and the volatility that ensued, markets continued to rise. This is because the stock market is forward-looking and considers future earnings potential.

When considering the best time to invest, place your goals and time frames first and news headlines a distant second. If you’re looking for long-term growth, then it’s best to stay invested in the market and not panic during short-term volatility. It will be our job as your portfolio manager to tilt the portfolio to mitigate the downside and capture the upside. We do this through short term tactical tilts. Working with our specialist team of experts can help you understand the risk factors at play in order that you make the best decisions during these turbulent times.

What to expect in 2024 and beyond

We don’t expect to see the end of this permacrisis any time soon. In fact, more global events in 2024 are anticipated, which will create a sense of uncertainty. But uncertainty, although uncomfortable, creates opportunity. Already this year, the world is keeping a close eye on the wider effects caused by the war in the Middle East, as tensions escalated in the region.

Not only this, 2024 is set to be the biggest year in election history, with more than two billion voters expected to go to the polls in 50 countries , including the US, UK, and India. The US election, taking place in November, is at the forefront of many minds as in many respects it sets policy for the world.
Market experts have been avidly sharing their thoughts on the impact the result could have on the wider economy and stock markets. While Trump is seen as a divisive character, many analysts agree that he represents lower tax and less regulation from a financial perspective, which could lead to a sharp rise in markets. On the other hand, analysts broadly agree the Biden administration has brought a period of prosperity, stability and growth to the US economy, which has flourished despite some serious headwinds, with unemployment figures remaining low.

It is feasible that the US economy will flourish whoever wins the election, whilst the ramifications for the rest of the world remain to be seen.

Navigating investments during turbulent times

We have seen that when a significant global event occurs, investors often react with a flurry of activity in the market or taking shelter in cash. The question is: is this right? More often than not, the answer is no. This is usually the time to trust your advisers, trust your plan and make the active decision to remain in the markets for the long term. Allow your portfolio manager to maximise the opportunity volatility creates.

If you set your eye on a life goal, prepare in advance for any eventuality the journey might throw, instead of changing the goal midway, at the sight of a storm. Investment storms are a natural part of investing, and your investment manager should be equipped to deal with them.

How Centurium Bank is supporting our clients through this permacrisis:

Our dedicated team offers an award-winning end-to-end service, whatever your financial needs, to leave you feeling ready for whatever the future holds.

Your tailored wealth plan will prepare you for your journey and clearly be anchored on the goals that are most important to you. Our investment team will manage a portfolio of assets to power that journey. By taking this approach we aim to capture the upside and minimise the downside of your portfolio to best suit your risk tolerance.

Our experienced private bankers, with the support of specialist teams, help you adapt to changing circumstances, providing you with a sense of control and reducing the fear of the unknown.

¹ Why 2024 is a record year for elections around the world | World Economic Forum (weforum.org)

The post Navigating a permacrisis: An investment perspective appeared first on Centurium Bank.

Economic data continued to pleasantly surprise for the most part, fuelling the upward trajectory of equities that had begun in late 2023. The S&P 500 soared to a new all-time high, with both economic growth and unemployment data nullifying fears that a US recession is imminent. Even the Euro Area was able to defy market expectations, as the region managed to sidestep a technical recession in Q4, with GDP remaining unchanged. Naturally, economic robustness was met with central bank resolve as officials from the Federal Reserve, European Central Bank and Bank of England decided to hold rates steady, whilst also signalling that rate cuts during the first quarter of 2024 was unlikely. The cautious stance adopted by the major central banks is of little surprise when considering the events of the 1970s, which saw central banks ease policy too soon and inflation re-emerge.

Unfortunately, the start of 2024 also saw a continuation of the geopolitical concerns that punctuated much of last year, with the Houthi rebels launching attacks on commercial shipping in the Red Sea which resulted in the US and UK conducting retaliatory air strikes. Towards the end of January , a drone attack claimed the lives of three U.S. troops in Jordan, heightening concerns about a broader escalation in the region, which is yet to materialise. Finally, China was dealt another economic blow after a Hong Kong court ordered the liquidation of property developer Evergrande Group after a breakdown in its debt restructuring talks. This comes two years after the company officially defaulted on its debt and, unsurprisingly, has done little to improve sentiment within the world’s second-largest economy which has been plagued with property issues ever since.

In terms of market returns, global equities (+1.2%) were positive in January, however there was a large variation across regions. Japan (+8.5%) was by far the best performing area with investor sentiment supported by the countries favourable macro backdrop of accommodative monetary policy, economic growth and inflation (the latter of which being something that Japan has been trying to engineer for some time!). The US (+1.5%) and Europe excluding the UK (+1.3%) also performed well whilst emerging markets (-3.5%) were held back by the developments in the Chinese property market. In terms of equity styles, growth stocks (+1.3%) outperformed value (-0.1%), and small-cap stocks (-2.6%) lagged large caps (+1.2%). This was reflected in sector performance, with information technology (+3.2%) and communication services (+3.0%) the strongest two sectors, whilst materials (-5.4%) and real estate (-4.7%) lagged significantly.

Fixed income markets were also mixed, with higher quality government bonds underperforming the lower quality credit space. The hawkish rhetoric from central banks pushed back market expectations for rate cuts and forced bond yields higher, meaning that the Global Aggregate bond index fell -0.2% over the month. Strong macro data dominated the narrative on the credit side however, meaning that global investment grade (+0.1%) and the risker Global High Yield (0.5%) were positive over January.

In the real assets space, both global real estate (-4.1%) and global infrastructure (-3.1%) underperformed, reflecting their sensitivity to rising interest rate expectations. Commodities displayed mixed performance over the month, such that whilst the broad index was positive (+0.4%), there was significant divergence within the index. Picking out the highlights, crude oil (+6.1%) rose sharply on the back of developments in the middle east, whereas gold (-0.7%) fell given the market’s expectation for slower cuts by central banks and a stronger US dollar.

The post January 2024 Commentary appeared first on Centurium Bank.

The aim of this three-day takeover is to support Hospice Isle of Man in their desire to increase awareness of the invaluable work they do and raise essential funds. These funds will enable the charity to continue providing a full-service care provision to the island’s community.

In a collaborative effort between Centurium Bank and Hospice Isle of Man, the Centurium Bank team will step into the shoes of voluntary shop staff. They will provide customer service, engage with shoppers, and encourage more footfall. Additionally, the team will run a raffle across the three days, with two luxury Fortnum & Mason hampers up for grabs.

Earlier this year, Centurium Bank introduced a new incentive for its colleagues where each employee is allocated one day per year to volunteer at a charity of their choice. This takeover event aligns perfectly with that commitment, allowing the team to actively contribute to the local community.

Andrew Halsall, Head of Private Banking in the Isle of Man, said: “We’re excited to work with Hospice Isle of Man on this opportunity. Our team is passionate about making a difference, and this initiative allows us to do just that. Our aim is to encourage as many people as possible to visit the shop, participate in the raffle, and support Hospice Isle of Man. By doing so, we hope to raise a lot of money for such a valuable local charity.”

John Knight, CEO at Hospice Isle of Man, said: “We are thrilled to partner with Centurium Bank. This is the first takeover of its kind for Hospice Isle of Man, and we’re looking forward to their team stepping up to make a positive impact on our Isle of Man community. By taking over the Hospice Isle of Man shop on Duke Street for three days, they will not only be providing essential customer service but also helping us to raise crucial funds. These funds enable us to continue our aim of delivering full-service care to our island’s community. We’re grateful to Centurium Bank for their commitment and support and look forward to working with them to make this a great success.”

The post Centurium Bank collaborates with Hospice Isle of Man on first-ever shop takeover appeared first on Centurium Bank.

Centurium Bank is pleased to announce the relocation of Sid Ludbe, a highly experienced private banker from its Isle of Man office to its award-winning representative office in Dubai, strengthening the company’s presence in the Middle East.

The move follows the appointment last year of private banker, Darren Hooker, who also joined the growing team in Dubai. Both appointments underscore Centurium Bank’s commitment to serving its clients in the Middle East and Asia.

Sid Ludbe brings a wealth of experience to his new role. Having closely collaborated with the Dubai team over the past few years, he is well-versed in the local market dynamics. His insights into the expat and non-resident Indian community, coupled with his UK connections, perfectly position him to serve this growing client group in the region.

Andrew Bates, Head of Private Banking for the Middle East and Asia, said: “By welcoming Sid to our representative office in Dubai, we enhance our ability to provide a cohesive wealth planning service to our clients. Both he and Darren bring valuable expertise to our growing Middle East team, which continues to go from strength to strength. We are confident in our ability to deliver exceptional service with our ever-growing, talented team as we provide a bespoke experience to our clients. This was underlined last year when we again won the coveted WealthBriefing MENA award for Best Private Bank Client Service.”

The expansion of Centurium Bank’s representative office in Dubai is in response to the sustained demand from high-net-worth individuals seeking financial services in the region. Many of these expats lead international lives in multiple jurisdictions and Centurium Bank is ideally positioned to help them manage and grow their wealth.

The post Centurium Bank strengthens its growing Dubai office appeared first on Centurium Bank.

As we have highlighted before, moves in bond yields impact most financial assets as investors try to value investments through the present valuing of future cashflow streams. If the discount rate (government bond yield) moves lower, the present value of those cashflows increases. As such, markets generally like falling bond yields, especially if economic growth is also not slowing too much.

There were several good reasons during the quarter for the sharp fall in bond yields. Firstly, there were signs that inflation is decreasing in the US, Eurozone, and even the UK. This reduced concerns about inflation being difficult to control in the near future due to tight labour markets. Secondly, declining oil prices not only helped with the wider falling inflation picture but also the ‘soft landing’ growth outlook, as high energy prices are essentially a tax on activity. Finally, and perhaps most importantly was the more ‘dovish’ central bank language coming from the US Federal Reserve. Its tone seemed to change (over the space of a few policy meetings) regarding interest rates, from ‘higher for longer’ to ‘higher for not much longer’. The market took this as a signal to price in a significant number of interest rate cuts for 2024. However, whether all these cuts will occur may be asking too much. Nonetheless, it was very supportive for virtually all markets in the last few months of 2023.

Beyond inflation and interest rates, geopolitical risk also eased during the last few months of the final quarter. The Israel-Hamas war looked to be contained. While there was an awful loss of life, this reduced the risk of a much broader regional conflict; with both sides agreeing to a temporary truce combined with a release of some hostages towards the end of November. Signs of easing US-China tensions were also seen in November, with a meeting between US President Biden and Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation Conference in San Francisco. The hope is that the more positive tone that came from this meeting (the first time the two have met in about a year) can translate into a reduction in uncertainty and a better economic relationship going forward.

How did all this translate to financial markets?

Well, overall it was a very good quarter for market returns. Global equities increased by +9.4%, with US equities (+11.8%) the best performing, helped by the strong performance of technology stocks. Emerging markets (+5.6%), and Europe ex-UK (+5.6%) also performed well, while the UK (+2.3%) lagged due to its higher exposure to commodities (especially oil) which fell during the period. In terms of equity styles, growth stocks (+12.8%) outperformed value (+9.3%), and small-cap stocks (+12.1%) outperformed large caps, mainly because interest rate expectations fell. This was reflected in sector performance, with information technology (+17.6%) and real estate (+15.0%) the strongest two sectors, although industrials (+13.4%) and financials (+12.6%) were not far behind, while energy (-2.7%) lagged significantly as oil prices fell.

Fixed income markets were also strong. In fact, certain bond markets posted their best quarterly return in decades, with the global aggregate bond index rising +6.0% over the quarter. Looking at the detail, global government bonds (+5.3%) performed well but lagged behind riskier fixed income bonds, which were supported by the strong increase in equities. This was seen in global investment grade credit (+7.5%), global high yield (+6.7%), and especially, global emerging market debt (+9.3%).

In the real assets space, both global real estate (+15.6%) and global infrastructure (+11.2%) performed very strongly, reflecting their sensitivity to falling interest rate expectations. Commodities displayed mixed performance in the quarter. While the broad index was negative (-4.6%), there was significant variance within the index. Crude oil (-17.5%) fell back further due to higher-than-expected supplies, lower demand outlook and declining geopolitical risk, whereas gold (+11.4%) increased on the back of the market’s expectation for steeper cuts by central banks and a weaker US dollar.

The post December’s investment market commentary appeared first on Centurium Bank.

Divorce affects everyone differently, and a marriage coming to an end is a profound life event and one that can be extremely disorientating, upsetting, and daunting.

However, there are steps that can be taken to ease the emotional and financial upheaval that accompanies the end of a marriage.

The emotional rollercoaster

Changing lifestyles and family circumstances can throw even the most resilient of individuals off balance, particularly during a divorce. It’s not uncommon for high-achieving professionals, often accustomed to steering the ship of their lives, to struggle with what can feel like a loss of control. Yet, with the decision to divorce comes a new opportunity to redefine future plans and goals.

The need for comprehensive support

Seeking professional legal advice is essential when going through a divorce to help navigate through the technical detail and allocate assets fairly. We notice a distinct need beyond the legal and financial support that you may ordinarily expect. This is particularly true for wealthy individuals and private clients who choose to be represented by a professional, especially those with significant wealth, or who lead complex lives that involve them living in more than one country.

Wealth planning

Engaging with a wealth planner from the outset is crucial to ensure a happy outcome. Wealth planners help clients to envision their future cash flow needs and to consider the lifestyle implications of their divorce settlement. Adjusting to a potentially lower standard of living necessitates careful planning, and pensions, often a significant asset, demand specialist attention for fair distribution.

Empowerment through financial literacy

In many marriages, one partner typically assumes the financial role, leaving the other to navigate uncharted fiscal waters post-divorce. Regardless of their professional expertise, we encourage clients to take the reins of their financial future. Selecting a wealth manager who can carefully and clearly explain the options, and aligns investment strategies with the client’s risk tolerance is paramount.

Choosing the right advisers

The ideal adviser transcends the role of a financial guide; they can become a confidant and ally. Clients deserve advisers who view them holistically, empathise with their unique situation, and offer emotional support during their most vulnerable moments. As a private banker and trusted adviser, our mission is to provide this comprehensive support, helping clients rebuild their lives and envision a future filled with possibilities.

For those embarking on the journey of divorce, remember that you are not alone. Our team is here to support you every step of the way. To learn more about our services and how we can assist you, please reach out to us. We eagerly await the opportunity to guide you towards a new chapter in your life.

The post Adapting emotionally and financially during divorce appeared first on Centurium Bank.