News

15 August 2014

John Bell advises that you should understand what's 'under the bonnet' following a recent FCA statement

Commenting in The Scotsman’s article on the 3rd August about the FCA‘s statement outlining the risks of funds in relation to corporate bonds, John Bell advises caution and a greater level of understanding before investing.

The FCA has concerns that corporate bond funds are wrongly perceived by many people as risk-free, this is a concern shared by Carbon Financial Partners’ financial planner, John Bell.

John believes many investors are lulled into a false sense of security by the low-risk ratings assigned to corporate bond funds by many credit agencies. John rightly highlights that the term ‘low-risk’ is relative and it may not be clear to many that there are other lower risk alternatives when investing.

The FCA statement warned there may be liquidity issues and the possibility that fund managers could struggle to sell sufficient bond holdings to meet investment redemptions orders. They are also keen to make investors aware that interest rates could have an impact on bond values, and an increase by the Bank of England would push bond prices down.

John’s overall advice is to gain a greater understanding of what’s ‘under the bonnet’ with these investment opportunities and states his preference for investment in short-dated, high quality bonds issued by governments and central banks.

You can read the whole of The Scotsman article on the web site by clicking here, and if you want to discuss your own financial plans or investments, email us at enquiries@carbonfinancial.co.uk or get in touch on Facebook, Twitter or LinkedIn

You can also view John Bell’s profile here

Read the statement from the FCA here

Sign-up for our Carbon Catch-Up Newsletter.

Signup

Sign-up for our Carbon Catch-Up Newsletter.

* indicates required

Carbon Financial will use the information you provide on this form to keep in touch with you and to provide updates and marketing. Please indicate below that you are happy to receive our updates in the future:

You can change your mind at any time by clicking the unsubscribe link in the footer of any email you receive from us, or by contacting us at alison.whyte@carbonfinancial.co.uk. We will treat your information with respect. For more information about our privacy practices please visit our website. By clicking below, you agree that we may process your information in accordance with these terms.

We use Mailchimp as our marketing platform. By clicking below to subscribe, you acknowledge that your information will be transferred to Mailchimp for processing. Learn more about Mailchimp's privacy practices here.

Contact us today...

We have offices in Edinburgh, Glasgow, Aberdeen, Perth and London. You can contact us at any of our offices, or by email.

Carbon Financial Partners Limited is authorised and regulated by the Financial Conduct Authority. The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK.

The Financial Conduct Authority does not regulate some forms of tax advice.
Registered in Scotland #SC386400.
Registered Office: 61 Manor Place, Edinburgh EH3 7EG, Scotland.
© Carbon Financial Partners 2021
www.financial-ombudsman.org.uk

Client Account | Personal Finance Portal | Privacy Notice | Cookies

Site designed and developed by Art Department