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One of France’s leading investment funds has established an operation in Dublin, which it plans to double in size by the end of the year.

Paris-based Tobam, the brainchild of finance guru and mathematician Yves Choueifaty, a former chief executive of Credit Lyonnais’s investment arm, manages more than €8 billion in assets.

It has been operating in Dublin since last July with a staff of 10, which it plans to extend to 20 by the end of 2017.

The firm chose Dublin from a shortlist of four European cities, including London, but insists the decision predates Brexit.

It said the State provided an ideal English-speaking gateway between North America and Europe and was already an established funds industry hub.
Stable business environment

The company also cited the stable business environment and low tax rates as key factors in its decision, and praised the IDA in assisting the transition.

“Dublin is a major gateway to the global funds industry, is a recognised talent and technology hub, and offers a stable environment to grow our business while maintaining the highest standards of quality in the asset management industry,” Tobam Ireland’s chief executive David Bellaiche said.

Set up in 2005, the firm was originally incubated in the ill-fated Lehman Brothers but managed to spin off before the US bank spectacularly imploded in 2008.

Tobam’s founder Mr Choueifaty is heralded as one of the founders of the so-called “smart beta” movement, which uses exchange-traded funds (ETFs), securities that track various market indices, to beat the market.

However, Mr Choueifaty is a critic of the tag “passive investment”, noting his company’s “anti-benchmark” strategy, based on an algorithm that measures diversification, runs counter to the typical capitalisation-weighted benchmark.
Replicated

“The benchmark has a property that I don’t have: it is the sum of all portfolios, and it shows what is expensive. That is still useful, but not in order to be replicated,” Mr Choueifaty said in a recent interview with the Financial Times

Tobam’s expansion into Ireland is the culmination of a 10-year growth spurt. Last year, it was named European asset manager of the year by the respected Funds Europe magazine.

The company is 80 per cent employee-owned with Calpers, North America’s largest pension fund and French asset managing giant Amundi, holding minority stakes.

Article Source: http://tinyurl.com/kbwqb42

Legislation paving the way for Theresa May to start the Brexit process will be published on Thursday.

The first salvo in the parliamentary battle will be fired as ministers produce a Bill which will allow the UK to trigger Article 50, the formal procedure for leaving the European Union.

The government was forced to draw up the legislation after losing an appeal at the Supreme Court, where judges ruled that parliament must give permission to start the Brexit process.

The Bill will be rushed through both Houses of Parliament within weeks in order to meet the Prime Minister’s deadline for triggering Article 50 by the end of March.

The timetable has yet to be set out for the debates and votes in the Commons and Lords, but Downing Street has pointed out that parliamentary time is available as early as next week.

The legislation will face attempts to amend it from all sides, while some MPs and peers will just oppose it outright – although the Government is confident that it can get the legislation through Parliament.

Members in both Houses will be acutely aware that appearing to frustrate the progress of the Bill would risk accusations that they are going against the will of the people expressed in last year’s referendum.

But the Liberal Democrats have vowed to oppose Article 50 unless there is a guarantee of a fresh public vote on the final Brexit deal agreed with Brussels, and the SNP has vowed to table 50 amendments to the legislation.

There will also be pressure on ministers to produce the promised White Paper on Brexit – announced by Ms May at Prime Minister’s Questions – before the crucial votes on triggering Article 50.

Within the Labour ranks, pro-EU MPs have indicated they will vote against the legislation even though leader Jeremy Corbyn has insisted his party will not block Article 50.

Would-be rebels look set to avoid disciplinary action, with senior Labour sources indicating that Mr Corbyn recognised the “difficulties” they face from remain-supporting constituents.

Shadow education minister Tulip Siddiq said she is ready to step down from her position if necessary in order to represent the views of her north London constituents, who voted overwhelmingly to remain.

But a senior Labour source said no decision had yet been taken on whether to impose a three-line whip on MPs, which would normally require frontbenchers to resign if they wanted to vote against the Bill.

Asked whether frontbenchers who vote against Article 50 would have to resign, the source said: “Obviously, there are difficulties for particular MPs and that is understood.

“But we will be expecting MPs and asking MPs to ensure that Article 50 is triggered.”

Labour is likely to table amendments to the Article 50 Bill on protecting workers’ rights and the environment, as well as ensuring the Government is subjected to scrutiny during negotiations.

And it is expected to try to amend the Bill to require a “meaningful” vote at the end of the process.

This would enable MPs to send ministers back to Brussels to seek a renegotiation if they do not approve of the deal which has been struck.

Article Source: http://tinyurl.com/kbwqb42

Hopes have been raised that rules limiting the amount of mortgage lending by credit unions may be relaxed.

Credit unions have limits imposed on them, with the value of their overall loan books restricting what they can issue as mortgages, but the Central Bank said it was reviewing the rules.

The move to review the mortgage restrictions comes as credit unions are stepping up their efforts to capture some of the rising demand for mortgages.

The Government’s help-to-buy rebate for first-time buyers and a shortage of housing mean mortgage demand is strong.

A new initiative means credit unions are expected to step-up mortgage lending.

They are to target first-time buyers, trader-uppers and those looking to acquire properties in tenant-purchase schemes.

They could lend up to €400m this year, this despite having some €5bn to loan out. Current rules mean they can issue only 10pc of their individual loan books in long-term lending, such as mortgages.

But the Central Bank said it was reviewing the rules, in a move that could give a massive competitive boost to the home-loans market.

“Longer-term lending limits are constantly under review by us and are also being addressed in the strategic dialogue forum we initiated last year,” a spokesman for the Central Bank said.

Proposals for changes to the restrictions on long-term lending have already been put to credit union representative bodies.

Article Source: http://tinyurl.com/kbwqb42

Plans for a new town with 3,000 homes in blocks of up to 50 metres high and office, commercial and retail space for 8,000 workers have been unveiled by Dublin City Council.

The Poolbeg West planning scheme incorporates some 34 hectares of land south of the Dublin Docklands beside Ringsend, and a film studio is open to consideration under the plans.

The scheme includes the 10-hectare former Irish Glass Bottle site, which was bought for more than €400m in 2006 but remains undeveloped. Other lands include the 4.6 hectare Fabrizia site, and 17 hectares owned by the Dublin Port Company, which will continue to be used for port activities.

The area was designated as suitable for fast-track planning permission in May last year. The master plan does not make specific reference to a proposed €80m film studio mooted by Dublin Bay Studios, which includes Windmill Lane Studios founder James Morris and producer Alan Moloney, but says there “may be” an opportunity to develop “media/ digital media and film production” facilities on a portion of the site or on nearby lands.

The master plan sets out proposals to build 3,000 homes in blocks of up to 50m, or nine storeys. Of these, up to 600 will be build-to-let to cater for the city’s rental market.

In addition, up to 100,000sq m of commercial and retail space is proposed to accommodate 8,000 workers.

But no large-scale retail development is proposed. Instead, offices and local services including shops, cafès, a hotel, two supermarkets and offices are earmarked for the site. No retail unit can be more than 5,000sq m.

“A primary challenge for the scheme is addressing a city-wide shortfall in housing supply,” the Poolbeg West Planning Scheme says. “The site has potential to provide significant numbers of new housing in an area well served by infrastructure . . . and for this reason can play an important part in improving housing supply.”

It says the age profile of the area is young, with 69pc of the local population aged 44 or younger, and there is a “high demand” for one- and two-bedroom homes.

Overall, up to 900 of the 3,000 homes would be one-bedroom units, some 450 would be three bedrooms or more and the balance would be two-bed properties. Under existing planning rules, 10pc of all new houses must be for social housing.

The plan also includes a new bridge across the River Dodder, coupled with the extension of the Luas Red Line and more bus routes. Car use would be minimised, and walking, cycling and public transport prioritised.
Three public parks are also proposed, along with a primary school. Heat and hot water would be provided to homes in a district heating system, using heat from the nearby Poolbeg Incinerator.

Article Source: http://tinyurl.com/kbwqb42

Enterprise Ireland has announced a new €750,000 fund created to support start-up activity across all sectors.

The Competitive Start Fund (CSF) provides entrepreneurs with the critical early stage funding to test the market for their products and services.

The fund – which provides €50,000 in equity funding for each successful applicant – allows for start-ups to progress their business plans for the global marketplace.

CSF is designed to enable those companies reach key commercial and technical milestones, including:

*Evaluate overseas market opportunities and reach firm conclusions regarding the viability of the proposed business

*Building a prototype

*Secure a reference site

*Develop a market entry plan for exploiting international opportunities

*Secure partnership deal or strategic alliance

*Identify suitable channels to international markets

*Secure third party investment

The fund is open to applications from individuals, early stage companies or prospective businesses active in the manufacturing & internationally traded services sectors which includes the following subsectors: Internet, Games, Apps, Mobile, SaaS, Cloud Computing, Enterprise Software, Lifesciences, Cleantech and Industrial Products.

“A key aim of the Government’s Action Plan for Jobs is to drive a strong pipeline of ambitious entrepreneurs with progressive products and services,” Minister for Jobs, Enterprise and Innovation Mary Mitchell O’Connor TD said.

“Ireland is recognised as a hub for innovation and start-ups and this fund will make a real contribution to help more early stage businesses get off the ground and ultimately assist in creating more jobs around all regions of the country”.

The all sector CSF fund will open for submissions on Wednesday January 25 and will close at 3pm, Wednesday February 8.

Article Source: http://tinyurl.com/kbwqb42

The combined deficit of defined-benefit pension schemes in companies listed on Ireland’s stockmarket soared to €4.5bn last year – a 50pc increase on the shortfall in 2015.

The widening deficit on Iseq firms was propelled by falling yields on corporate bonds, according to a report published by global consulting group Mercer this morning.
The huge deficit will continue to put defined-benefit schemes squarely in the sights of companies seeking to close the attractive retirement vehicles.

The Mercer report shows that the schemes’ asset returns of between 8pc and 10pc in 2016 were not sufficient to match growing liabilities.
Mercer said that yields in the average defined-benefit scheme fell by 0.75pc last year, increasing liabilities by 16pc.

“Up until recently, low yields have been offset by lower inflation expectations,” said Peter Gray, risk financing specialist at Mercer. “However, the end of 2016 saw inflation expectations rise, inflating liability valuations. Scheme assets have performed well over 2016 but have fallen short of the increase in liabilities, resulting in higher deficits.”
Defined-benefit schemes that have been able to de-risk, for example by investing in matching assets, have been somewhat immunised against the falls but many others cannot afford to lock in low yields and have suffered as a result, said Mercer.

The consulting group said that a recent rise in inflation expectations “could provide a chink of light” for 2017 and beyond.
It said that signs that inflation is expected to return might encourage the European Central Bank to end or reduce its bond-buying programme, possibly helping yields to increase across the eurozone.

Article Source: http://tinyurl.com/kbwqb42

The revenue commissioners have encouraged taxpayers to use online services when filing tax returns over the coming weeks and months.

People filing revenue declarations can log on to the revenue website and use the PAYE Services function in the “my Account” section,
Revenue says the online offering makes the process easier and more convenient, and allows people to check what tax credits they are entitled to.

Using any smart device, customers can register a job, inform about a new job or additional income, as well as ensure all tax credits are claimed along with claiming any tax back that may be owed.
The service also allows users to declare income or divide tax credits and rate bands for 2017.

More than 52,000 taxpayers have used the new facility to register a new job online, to avoid emergency tax.
In the first two weeks of this year, an average 620 customers per day used the online service to manage their tax for 2017.

The most frequently updated tax credits were the Single Person Child Carer Credit, the Home Carer Credit, and Flat Rate Expenses.

Article Source: http://tinyurl.com/kbwqb42

The 400,000 people renewing their private health insurance this month could be paying as much as €3,000 a year more for their private health insurance than they need to, Sunday Independent analysis has found. Most at risk of overpaying are those who have been on the same plan for three or more years – and those who automatically renew their cover without shopping around.

Private health insurance products are often confusing – so it can be hard to tell if you’ll sacrifice important cover and benefits by switching to another plan. This is one of the reasons people can be reluctant to switch.
However, you could save thousands by moving to a plan that is very similar to the one you’re on – and you might not even have to change insurer.

With this in mind, we asked top private health insurance experts – Dermot Goode of Totalhealthcover.ie and Barbara Sheahan of Healthinsurancehelp.ie – to suggest a number of plans that could be worth moving out of and to recommend similar, yet cheaper, alternatives. Between them, our experts identified eight switches that would slash health insurance bills.
Switch from Laya’s Health Smart Family to Connect Choice: Save €3,115

Health Smart Family and Connect Choice are two plans offered by Laya. A family of four would save €3,115 a year by moving from Health Smart Family to Connect Choice.
“Both plans are very similar,” said Goode. “They cover the same hospitals and have the same excesses [the first part of a claim you cover yourself]. Health Smart Family has slightly higher maternity cover.”

Both plans have similar cover for routine GP expenses – however Connect Choice is slightly better as you get 75pc of your GP expenses back; but with Health Smart Family, you get 50pc of your GP expenses back.
“Health Smart Family is one of those plans which has been badly hit by price rises over the last four years.”

Connect Choice costs a family of four €3,199 for the year; Health Smart Family costs the same family €6,314.
Goode’s figures (and the other family savings quoted in this piece) are based on a family of two adults with two children under 18.

Switch from Irish Life Health’s Business Plan Select to Health Plan 16.1: Save €1,587
A family of four would save €1,587 a year by moving from Irish Life Health’s Business Plan Select to the same insurer’s Health Plan 16.1.

“Both plans cover the same hospitals and both pay the same refunds on day-to-day medical expenses,” said Goode. “However, Business Plan Select has an excess of €125 per claim for most treatment in a private hospital – but with Health Plan 16.1, the excess is €75 per claim.”
Most insurers have co-payments on orthopaedic procedures, which means they won’t foot the entire cost of such surgery – leaving you to cough up a few thousand euro. There is a difference in the shortfall you face for orthopaedic procedures under these plans. “Business Plan Select has a shortfall of €1,500 on certain orthopaedic procedures; with Health Plan 16.1, the shortfall is €2,000,” said Goode.

A family of four would pay €3,955 a year for Health Plan 16.1; the same family would pay €5,542 for Business Plan Select.
Switch from VHI’s Parents & Kids Options to PMI 3513: Save €1,336

A family of four would save €1,336 a year by switching from VHI’s Parents & Kids Options plan to PMI 3513 – a corporate plan offered by the same insurer, according to Goode.

These plans are quite similar. They provide cover for a private room in a public hospital – or a semi-private room in a private hospital. However, with PMI 3513, you take on an excess of €100 per private hospital claim; there is no excess on VHI’s Parents & Kids Options.
“PMI 3513 will give you a guaranteed refund on your routine medical expenses, such as GP bills,” said Goode.

“However Parents & Kids Options doesn’t. The cover for psychiatric treatment is better with Parents & Kids Options and there is slightly higher maternity cover. You get cover for 180 days in a private psychiatric hospital with Parents & Kids Options; but with PMI 3513, you get 100 days cover.”

PMI 3513 costs a family of four €3,266 a year; Parents & Kids Options costs €4,602.
Switch from Irish Life Health’s First Focus to Select Plus: Save €803

A family of four could save €803 a year by moving from First Focus to Select Plus. Both plans are offered by Irish Life Health.

“Select Plus and First Focus cover the exact same hospitals and inpatient cover [for overnight hospital stays] for everything other than maternity,” said Sheahan.
“Select Plus offers a limited level of maternity cover. If you are on First Focus and do not need maternity cover, Select Plus is an excellent alternative.”

Select Plus costs a family of four €2,194 a year; First Focus costs €2,997.

Switch from Glo Health’s Better Plan to Better Plan Smart Cash: Save €742
Glo’s Better Plan is a “very good mid-range hospital plan”, according to Goode. A similar yet cheaper policy is Better Plan Smart Cash, a corporate plan offered by the same insurer.

“Both plans cover the same hospitals and have the same excess,” said Goode. “Better Plan Smart Cash offers better refunds for routine medical expenses than the Better Plan.”

Read More: The 60-second guide to… private health insurance jargon
A family of four pay €3,168 a year for Better Plan Smart Cash – or €3,910 for Better Plan.

Switch from Glo’s Best Smart to Irish Life Health’s Best Smart: Save €169

“Anyone insured with Glo Health should be reviewing their plan,” said Sheahan. “As Glo Health was recently acquired by Irish Life Health, a number of Glo’s plans have migrated over to Irish Life Health plans – where you can get the exact plan for a cheaper premium.”
For example, a family of four would save €169 a year by switching from Glo Health’s Best Smart plan to Irish Life’s Best Smart plan. Glo’s Best Smart plan costs a family of four €3,558 a year; Irish Life’s version costs €3,388.60.

Switch from VHI’s Health Plus Extra to Laya’s Total Health Select: Save €1,153

VHI’s Health Plus Extra plan, previously known as Plan B Options, is designed for older members. At €2,506 per adult, it’s pricey cover. A couple would save €1,153 a year by switching from this plan to Laya’s Total Health Select. (Children are unlikely to be on this plan).

“A huge number of older members have remained on Health Plus Extra for years without reviewing their cover,” said Sheahan. “As this policy is one of the oldest on the market, it has been subject to every price increase along the way. The main reason for its high price tag is that it fully covers cardiac procedures in the high-tech hospitals and orthopaedic replacements in the private hospitals – without any excess. Should you wish to maintain full cover for these, Laya’s Total Health Select, which costs €1,929.66 per adult, would be one of the best alternatives.”
Total Health Select plan costs a couple €3,859 a year; Health Plus Extra costs €5,012

Switch from VHI’s Healthplus Platinum (Plan E) to Laya’s Empower Secure (No Excess): Save €2,759

VHI’s Healthplus Platinum (Plan E) is an advanced plan targeted at older members. At €5,258 per adult, it’s also very expensive.

A couple would save €2,759 a year by moving from Healthplus Platinum to Laya’s Empower Secure (No Excess) recommended by Sheahan. Both offer similar cover for hospital stays. “However, the Laya policy offers far superior outpatient benefits – the ability to claim money back on consultant and GP visits,” said Sheahan. “The only reduction in cover with the Laya plan is that the psychiatric cover reduces from 180 days to 100 days.” VHI’s Healthplus Platinum (Plan E) costs a couple €10,516 a year; €7,756 for Laya’s Empower Secure (No Excess).

Article Source: http://tinyurl.com/kbwqb42

In the first half of 2016, just 3,600 of us, or 0.06pc, switched our current account to another bank.

This is a far cry from the first half of 2014, when over 26,000 customers switched, although this was mainly due to the exit of Danske Bank and ACC Bank from the current account market.
“The main reason for inertia in switching current accounts is fear that something will go wrong,” said Simon Moynihan of price comparison site Bonkers.ie. “Many consumers are concerned that their direct debits will be cancelled and that they will miss important payments on their mortgage or energy bills by switching current accounts.”

The existence of the Central Bank’s Switching Code (designed to make switching current accounts easier and quicker for consumers) and the banks’ own efforts to ease these fears, such as with new types of current account, appear to have had little influence, he says.
“Until the fear of something going wrong is properly tackled, those low switching figures are likely to remain stagnant.”

A few years ago, consumers could avail of genuinely free-fee banking thanks to strong competition among a greater number of banks for new customers, but things are a little different now, especially with only six players in the market.
AIB, KBC and Ulster Bank are offering fee-free banking to customers, but only when a number of strict criteria are met. With AIB, customers must keep €2,500 on deposit at all times and with Ulster Bank, that figure stands at €3,000. With KBC, customers can avail of fee-free banking by lodging €2,500 every month.

Bank of Ireland charges a €5 quarterly maintenance fee to all customers, but will waive transaction fees for customers who keep €3,000 on deposit at all times.
Permanent TSB is a little bit different, says Moynihan. “With the bank’s Explore Account, customers are charged €4 every month, but this can be offset by the fact that the bank will pay back 10c on every debit card transaction. However, this is capped at €5 a month.

“So, it is possible to actually make €12 over the course of a year by banking with Permanent TSB, but customers will have to transact a lot.”
Contactless payments remain free of charge with KBC, Ulster Bank and Permanent TSB, while Bank of Ireland charges 2pc of the transaction value up to a maximum of 11.43 per transaction), while AIB is set to start charging 20c each from next month.

When it comes to credit cards, there are signs of increased competition among banks, with many now offering 0pc APR on transfers for a certain period of time, according to Moynihan.
The Bank of Ireland is offer 0pc interest on balance ­transfers for seven months on its Classic credit card, although it does have a rate of 22.1pc. KBC is offering 0pc APR on transfers for six months, with a rate of 18.25pc kicking in after that.

Permanent TSB are also offering six months of a 0pc APR on balance transfers, but with a rate of 20.7pc.
One of the best rates on the market is AIB’s CLICK Credit Card, which comes with 13.8pc APR, but this does not have any balance transfer option.

Article Source: http://tinyurl.com/kbwqb42

Question: My landlord has just sent myself and my flatmate a letter informing us that the rent is being increased from March.We think this is very unfair and understood it wasn’t allowed due to the rent freeze. He says otherwise and even though we haven’t had an increase in two years, I thought it couldn’t be done now as our lease date was last November and assumed the rolling over meant no increase. We are confused. Do we have to pay up?

Answer: This has confused not just you, but many readers. The two-year rent review introduced by the previous Housing Minister Alan Kelly in 2015, and the so-called “rent predictability” measures on increases by successor Simon Coveney (maximum of 4pc p.a. for three years), is a great idea for tenants, but it has caused many landlords (not unreasonably), to seek to increase rents now to cover the two-year period where they may not get an increase. In any event, it has not yet been enacted into law.

I asked the Residential Tenancies Board about this – the rule is that if your rent has not been increased any time in the last two years, which you would indicate is the position in your case, and the increase suggested is within the range for the area (the landlord must be able to back this up with at least three similar properties and you can check yourself using local rental databases), then he is entitled to seek an increase now.

Yes, it really should have been done in November, if that’s when your natural year was up. So thus far, you’ve effectively benefited from an extra five months at the lower rate. He must give 90 days’ notice for the increase. If you believe the increase is out of kilter, you can challenge this through the RBT.
You are, of course, free to give him notice should you wish to leave and you can find something you like for less.

Article Source: http://tinyurl.com/kbwqb42