Since announcing our alliance with capital and consolidation experts – Succession, I attended our first annual conference for business owners at the beautiful Bovey Castle in Dartmoor.

Now Xentum is one of 45 businesses who fall under the Succession umbrella, it was great to meet other business owners and hear first hand about some of the fantastic developments Succession is forging ahead with.

As a group of businesses, or hub, Succession reported that collectively there is now £6 billion in investments which now fall under its influence. This gives tremendous buying power and helps drive down costs which can ultimately be, over time, passed to clients.

Another highlight of the conference was to hear MP for Wokingham and former director of Rothschild Merchant Bank John Redwood MP giving a fantastic analogy on the Euro.

He likened the situation to setting up a bank account with your neighbour; in which you both plough in all of your money, except your neighbour decides to purchase a four bedroom villa, while you would have been happy with a two bedroom apartment. On top of the villa purchase, you then find out your neighbour has run up a huge bar bill, you object to paying for it, but too late, it’s been paid for! The moral of the story being don’t open a bank account with your neighbour! He made perfect sense out of a messy situation.

Well, after a well earned Christmas and New Year break I have returned to work with a renewed sense of enthusiasm and optimism for the year ahead.

That’s why a piece I read earlier; ‘Go Figure; The great business confidence gap’, struck such a chord with me. Essentially, it was about how business leaders recognise the economy is in a state of flux, but despite this, actually believe their own business is doing well.

There followed a long, intelligent argument of why certain people would hold this belief, if, indeed it was true, and how you could effectively measure success. But the bottom line was (according to several legitimate surveys) that there was a really sense of optimism out there despite all the negative media about the economy. This in itself begged the question; Is it all the media’s fault for fuelling the economic situation through its excessive reporting? You get the picture? The article really probed the issue of perception.

Regardless of the research and the argument, the fact is, there is overwhelming evidence to suggest there is a huge amount of optimism among captains of industry, business leaders and owners and I am happily part of that club.

Maybe it is a case of genius child syndrome – we all think our babies are prodigies in the making; “oh, she’s so forward,” I can hear the immortal words now. And of course, in your eyes they are exceptional wonders in the making and they’d have to seriously make a lash up of their lives for this view to change.

Now, I’m not saying when it comes to business that our rose tinted specs blind us to the reality of the situation but how can you lead a successful business and not be positive? It’s like negative parenting – it only creates a morose child. I genuinely believe you only get out of life what you put in, whatever the focus of your positivity is.

So, I am genuinely feeling good about the year ahead. We’ve just announced an alliance with the UK’s leading consolidation and capital creation company – Succession.

The announcement is the culmination of months of discussions and through their support it will really help us to give our clients the very best bespoke, quality service. This is so important at a time when investors are so disenchanted by the service the private banks give.

What kind of year will 2012 be? Who knows? But it is the Year of the Yang Water Dragon and some believe it signals the end of the world but according to feng shui believers, it should bring many possibilities. I’m definitely supporting the latter view and I think we all should sprinkle some feng shui karma into our lives.

As Louie Spence gesticulated wildly and shouted Oh No He Isnt and the baying crowd of five year olds retorted Oh Yes He Is and with the odd He’s Behind You thrown in for good panto measure, this was a world away from the woes of the global economy.

However desperate times may be, there was no sign of fiscal troubles in this packed to the rafters Manchester theatre, which I suspect will be a sell out throughout this season’s run of Cinderella.

Embracing the magic of Christmas, especially when you have children is priceless, we’ve even had a timely dusting of snow in recent days for traditional effect, but for me it’s these golden moments that put the worries of the year behind me and make me focus on what we have.

Yes, it’s been a tough year economically but as a business we’ve survived to continue to give our clients the best service we possibly can. This year has been about wealth protection, minimising losses and making quick gains when the market allows and I’m proud that we’ve successfully protected our clients from the unpredictable nature of the markets.

Many friends and peers either own their business or hold senior positions within organisations and the topic of conversation is punctuated with the word tough. There is absolutely no doubt that we are feeling the pinch both personally and professionally but equally I think the time has come to see the positives and feel proud if you’re still in a job or keeping a business afloat.

Looking on the bright side, as a business, we’ve had a good year. We’ve continued to retain all of our clients while steadily acquiring new ones; we’ve done tremendously well in terms of wealth protection and have also made some nifty gains for our clients during opportune times.

Highlights have included the bespoke commercial deal we packaged and delivered in conjunction with 53N, sponsorship of The Manchester Contemporary VIP Collector Programme and of course the proud moment Adam achieved chartered status.

Are these tough times behind us? Oh no they’re not, but if you’re lacking Christmas cheer, take your kids to the panto and at the very least enjoy a couple of hours of escapist nonsense.

If you’re concerned about your investment performance or have any questions at all don’t hesitate to contact me for an informal chat on 0845 226 6971 or email info@xentum.co.uk.

As Jessie J laments in her Price Tag hit, she may actually have a point. Which I know is a sentiment at odds with running a wealth management business, but there is a method in my madness.

The world economy is in a precarious state and the priority for financial planners at the moment is to protect wealth by minimising potential loss – gains are a real bonus at the moment. Of course those who are prepared to take more risk can be financially rewarded within turbulent times but it’s not an option for the more cautious.

‘Lifestyle forecasting’ is becoming more prevalent within the realms of personal finance, and isn’t just about what we want to spend our money on in one, five, ten years time. It’s about serious cash flow forecasting which enables your financial advisor to work out if you have sufficient funds to give you the lifestyle you want for you and your family for the rest of your life. The forecasting is balanced against predicted inflation and the level of investment risk you are prepared to take.

Clients’ anxiety over their wealth is always heightened during difficult times and none more so than those reaching retirement age or retirees. Regardless of what’s happening in the markets a good wealth manager should be working hard to minimise losses but worry over the long term can be eased with this clever but common sense financial analysis. Equally, it can highlight future shortfalls but crucially gives your adviser time to put plans in place to redress the issue.

If you haven’t already asked your financial planner about cash flow forecasting then you should. It’ll give peace of mind, is a useful succession planning exercise and highlights any unnecessary risk taking. Why take risks if the forecast predicts a rosy outlook regardless? It’s a no brainer……

I have recently completed a financial forecast for one of my clients who has been genuinely concerned if she had enough assets and funds to give her the lifestyle she currently enjoys into old age. No stone was left unturned and we certainly erred on the side of caution and over estimated annual spend and took a pessimistic view on predicted inflation at 3%. It confirmed my client will have sufficient funds for the next 30 years and interestingly showed that even taking low risk investment options as opposed to her current medium risk profile would still give her sufficient resources to fund her lifestyle.

Peace of mind is priceless.

Recent UK and European legislation has committed the UK to increasing the amount of electricity generated by renewable sources from 5.5% to 30% by 2020.

In an attempt to meet this target, the Government introduced a feed-in-tariff (subsidy) in April 2010 to encourage greater investment in renewable energy.

Under the scheme households, organisations or companies that produce electricity from renewable sources will receive a payment from their electricity supplier for each unit of electricity that they generate and a further payment for each unit of electricity that they export to the National Grid. The payments have been set by the Government for 25 years and are due to rise in line with inflation.

With rising energy prices showing no sign of letting up more and more homeowners are looking to save money on their energy bills by installing solar panels to their roofs in an attempt to benefit from the feed-in-tariff payments.

Homeowners wishing to do this have two choices:

1) Install solar panels to their roof (at a typical cost of £12,000)
2) Rent their roof to a solar provider who will install the solar panels

So far so good, but what are the pitfalls? With the first option the most obvious question is how long it will take to recoup your initial outlay. Much will depend on location, the quality of the equipment used and ongoing maintenance costs.

With the second option it should be noted that the provider owns the solar panels and as such they will collect the payments and sell the electricity to the National Grid. The homeowner is free to use the electricity generated, but as the electricity cannot be stored, it is very much a use it or lose it scenario.

Other problems are that solar installers are currently unregulated and homeowners may fall victim to unscrupulous firms. As solar providers tend to offer leases that run for 25 years without a break clause this will put off future house buyers that do not want solar panels on their roof. Homeowners who do not consult with their mortgage lender may also find that they violate their mortgage agreement.

The Government has today announced the results of the feed-in-tariff review, which has recommended that as installation costs have fallen since the start of the scheme, the tariffs will be reduced for installations with an eligibility date on or after 12 December 2011. This will obviously affect the returns from new installations going forward.

Is there another way to benefit from the feed-in-tariff without the hassle of installing solar panels to your roof? With interest rates at a record low and the stock market showing no sign of stabilising, we are constantly being asked by clients for alternative investment solutions.

In the course of our research, we have identified a number of solutions linked to the solar energy market, which offer income tax, capital gains tax and in some cases inheritance tax benefits. If you are interested in finding out more information, please contact us for further details.

36 students took part in the opening presentations of the College of Law Share Race on Friday night. The race will again be held from November to March to fit in with the student’s busy schedules. Last year’s share race was a great success and as a panel member, I am hoping that this year will be even better.

For the students taking part in the share race, understanding businesses within the FTSE 100 will become the key to success over the next few months and blocking out the “white noise” from the media regarding some companies would be my key tip for success along with the conviction to stick to your guns within the portfolio.

We are however not just looking for the highest portfolio at the end of March. As a panel we are determined to make this share race beneficial for the CVs of the 36 who have signed up. The other prize goes to the “best investment discipline” and will include a matrix which includes key indicators such as “professionalism” and “presentation” together with scoring for actual investment processes and logic.

It is important to the panel that the students explain the reasons behind their trades in a clear and concise manner. This is particularly relevant in a tough investment environment when sound financial companies are not always rewarded by market sentiment.

So now we are up and running for another year, it will be interesting to see how the participants perform in what is going to be a very challenging period even for a professional investor.

Two members of last year’s winning team also popped in to tell the new entrants the benefits of the share race and I was delighted to find out that the share race had really aided their search for training contracts with law firms. This was positive for the students to hear as it is more evidence that the Manchester Professional job market seems to be thriving despite economic woes on a national scale.

PS. As I write this CPI is up to 5.2% and RPI is up to a staggering 5.6%. The rise has been put down to a dramatic rise in energy costs, mainly gas and electricity bills. This figure is still way above the Inflation CPI target of 2% and is particularly alarming given that the BOE saw these figures and still decided on more Quantative Easing.

With financial doom and gloom and the conservative party conference hogging the headlines, there is plenty of blog fodder but, for once, I feel the need to rebel against the obvious and talk about art.

My mother has always been a keen artist and belongs to a world which I’ve observed, with interest, from afar but haven’t really dabbled in. While growing up I expressed myself more on the rugby pitch rather than quietly contemplating my next work of art.

That said, I read with interest a proposal from The Manchester Contemporary on how we could support this year’s exhibition being staged at the end of October in Manchester’s Spinningfields. We get approached to ‘support’ many causes throughout the year but this one struck a chord.

We’re now officially sponsoring the VIP Programme for the exhibition which attracts serious art collectors from the region and beyond. The VIP Programme will give this group of prolific collectors the chance to preview cutting edge work by some of the UK’s and indeed the world’s brightest new talent, meet the artists and visit their studios as well as meet and mingle with fellow collectors.

We’re all very much looking forward to attending the exhibition and meeting artists and collectors alike.

The event will run from 27th – 30th October at Quay House, Spinningfields. For those who prefer more main stream art The Buy Art Fair runs alongside The Manchester Contemporary.

Hope to see you there.

Last week marked the launch of pro.manchester’s SME Club and we are delighted Xentum is associated with this unique initiative. The SME Club is a major scheme to help small and medium sized enterprises grow by offering expert advice, practical support and guidance from the region’s professional firms.

Pro.manchester is an organisation that represents the professional and financial services sector in the city. As the largest advisory group in the North West it has over three hundred member organisations and five thousand active members.

This is a great opportunity for new start up businesses and entrepreneurs to survive and thrive in these challenging economic conditions by using the SME Club as a primary gateway to a range of products and services.

As an active member of pro.manchester since 2008 Xentum is keen to contribute and co-operate with other SME Club members.

For more information please visit www.smeclubmanchester.com

Andrew Morris, managing director of Signature, the arm of Rowan Dartington dedicated to supporting investment professionals and their clients, adds further comments on the continued crisis in the Eurozone.

Is it true that the UK is seen as a ‘safe haven’? Or is it merely not quite as shambolic as the Eurozone?

In the current environment there are few places that can be termed genuine safe havens. Currency movements are a key measure of confidence in an economy. Of the major currencies, the pound is the second worse performing currency after the USD over the last 12 months, with the Swiss France the most favoured. Only in the last few weeks has the €:£ showed signs of being impacted by the crises. The £ has only just bounced off a near 2 year low!

Much of the economic data released over the summer suggests an increasing likelihood that we will see at least one quarter of GDP contraction in the UK. Public sector finances were actually better than forecast in July however, in spite of this, public sector borrowing remains disappointing in comparison to that expected by the Office for Budget Responsibility (OBR).

It is worth noting, that the full impact of the UK’s budget cuts announced to date are forecast to only start to address the deficit from 2015. Any weakening of the economy/shortfall in revenues could make this an even more painful ride. However the ‘floating’ pound is likely to be a plus for the UK as it is able to create export opportunities and an economic stimulus for UK businesses. The members of the Euro don’t have this benefit – yet.

Why has the crisis now spread to Italy? How great a threat is it to Spain?

Italy is the third largest bond market in the world, so the implications of them taking the same road as Portugal, Ireland and Greece would be a fame changer. So although the challenges facing Spain in the near term are great, the implications of a downgrading of Italian debt would be more far reaching to the EU and the ECB. The sudden attention with which it now finds itself can be mainly attributed to Global investment climate, domestic political issues and the lack of progress in implementing its own austerity programme; it also badly requires domestic reforms to its own economy. The ‘fundamentals’ at present do not on their own warrant a sudden and pronounced expansion in Italian bond yields.

However continued inaction or “fudging” on the part of Eurozone policy makers and by extension their failure to address the contagion issue, has led to the natural reaction of a nervous market.

Why does it appear that efforts to date have failed?

There’s no easy solution. In addition there are 17 different countries each pursuing their own agenda with their own interests and their own domestic politics. Since the announcement of the second Greek bailout, a number of countries have signalled their dissatisfaction. Current efforts have failed because they don’t acknowledge the nub of the problem, which is one of solvency and sticking plasters over these gaping and growing wounds may hold things together in the short term but they are not a long term solution.

George Osborne is right in arguing for decisive action, indeed the emergence of Italy as a problem country is a reflection of the collective inaction which has prevailed and we can reasonably expect that other countries will be drawn in.

“I seem to be working really hard but not really getting very far” seems to be a common theme at the minute among friends and acquaintances who are running their own businesses.

There’s no doubt that it’s a tough climate and to run a profitable business in such turbulent economic times is not for the faint hearted. You need nerves of steel and an unwavering determination to make it work. I’m sure entrepreneurial spirit and drive will re-ignite our ailing economy over time and for those still in business and soldiering on, I can only applaud them.

This is why I was interested to read that top economists are calling on the government to drop the 50p tax rate for those earning above £150,000. On two levels it’s interesting; in that all the media coverage was sparked essentially by a PR initiative in the form of an open letter published in the Financial Times sent by a group of influential economists. On the other, its timely release reflects a growing feeling of discontent if not anger among top UK earners that they are being penalised for creating the wealth that this country needs to get it out of the mire.

Whether this latest debate will degenerate to merely PR puff remains to be seen but what will really be interesting will be the findings from the report requested by the chancellor to find out exactly how much this higher tax actually helps to reduce the deficit.

I suspect it won’t be as great as Osborne originally predicted. From our experience the very nature of being a high net worth individual is that they can pay for professional advice on effective tax planning which can negate the 50% tax.

Watch this space….