21 December 2011
IN THIS ISSUE
Quintas Quarterly Newsletter - Winter 2011
Introduction
Endgame?
Quintas Launch The 2011 Horizon EII Fund
Donncha O’Callaghan - Book Signing at Quintas
Quintas Quarterly Economic Review
Reasons To Be Hopeful For Ireland Inc
Budget 2012
Recent News
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Quintas Quarterly Newsletter - Winter 2011
Introduction
by Fachtna O'Mahony
 
Fachtna O'Mahony, Partner
Fachtna O'Mahony, Partner

There's no doubt 2011 has been difficult for most people and I think it's fair to say we're looking towards 2012 more with hopeful expectation than anything else. For most of us the Christmas period brings a much needed chance to rest, reflect on the year gone by and plan for the future and we should all use this time well.

As usual in our newsletter we endeavour to give a broad outline of some of the business and economic issues of the day and in this issue we have contributions on the future of the euro, an economic review of the quarter, some highlights from the budget and some reasons to be hopeful.

In early December the Government finally got EU approval for the Employment and Investment Incentive Scheme which is the successor to the long running Business Expansion Scheme with some interesting changes. Quintas are delighted to launch the 2011 Horizon EII Fund which affords clients an opportunity to avail of a tax saving scheme before year end. My colleague Jim McCarthy explains this in his article and anyone interested should register their interest with him immediately so he can follow up on same before year end.

I am also delighted to announce that Munster and Ireland Rugby star Donncha O'Callaghan has kindly agreed to attend our office in January for a book signing and photo opportunity for those who have bought his recently published autobiography Joking Apart. This will be a great opportunity for our clients and business friends to get up close and personal with the big man. Again those interested in attending should please email lorna.kelly@quintas.ie and we will let you know the details in due course once finalised.

On behalf of us all at Quintas I would like to wish you and your loved ones a very Happy Christmas

Endgame?
by David O'Shea
 
David O'Shea, Investment Director
David O'Shea, Investment Director

Uncertainty over the future of Europe and the Euro has reached a dangerous phase.  Risk in Europe has become skewed due to lack of clear leadership and compounded by significant deleveraging in the private and public sector.  A strong policy response has been required for over 6 months now and as this necessary response continues to be put off markets have increased risk premium attached to practically all asset classes. 

Countries, corporates and individuals are being forced to accelerate deleveraging of their balance sheets.  Non-core assets are specifically suffering from extreme risk aversion.  Markets like nothing more than certainty and at the moment uncertainty abounds.  For banks (and the functioning of the financial system) this is leading to a spiral of an accelerated sell off in assets in the midst of weak buying.  That private balance sheets need to be deleveraged is not in questions but in order to have any orderly market adjustment there needs to be strong buyers.


Read more»
Quintas Launch The 2011 Horizon EII Fund
by Jim McCarthy
 
Jim McCarthy, Partner
Jim McCarthy, Partner

Quintas Wealth Management are pleased to announce the launch of The 2011 Horizon EII Fund.

What is the Employment and Investment Incentive Scheme (EII)?

The EII scheme was introduced by the Finance Act 2011 and is a replacement for the BES.  However, it is a very much revamped BES.  The EII is a Tax Relief incentive scheme enabling eligible investors to avail of tax relief by deducting the cost of their qualifying investment from their total income for income tax purposes.

The EII offers one of the few remaining all income tax deductions offering up to 41% tax relief*. 

Why Invest in The 2011Horizon EII Fund?

  • Tax savings: 100% of the investment can be set off against your 2011 total income, offering you up to 41% tax relief*
  • Tax relief available on investments up to a maximum of €150,000. Minimum investment is €10,000.
  • Funds only committed for up to 4 years. Most other shelters have 10  to 15 years life span.
  • Risks associated with EII investment is significantly reduced due to stronger companies now considering EII as a source of funding. Investing in a managed fund helps reduce your risk by spreading your investment over a portfolio of strong and performing companies across a range of industries.
  • Selected companies proceed through a rigorous financial, tax and legal due diligence, as well as commercial review by experienced professionals.
  • The Fund imposes very strict operating controls on investee companies and their directors.
  • The Fund has a Dual Put and Call Option Agreement to assist exiting investors from the Fund.
  • The Fund manager insists that sinking funds form part of the legal agreements.
  • The Fund insists on conversion options for investors.
  • Advantage of a professional, experienced and knowledgeable team.

* The tax relief is available at the individual’s highest marginal rate of income tax.  Provided investors hold their investment for a minimum of 3 years, the EII provides tax relief of 30% in the year of investment and an additional 11% relief is available at the end of the 3 year investment period subject to conditions in relation to employment levels or expenditure on research and development being achieved.

To view The 2011 Horizon EII Fund brochure and application form please click here.

We recently issued an eflyer on the Fund and you can view it by clicking here.

If you have any questions or would like any additional material please email:

eii@quintas.ie or call us on 021 4641480

Warning :  The value of your invesment may go down as well as up. Investors are advised to consult with their own financial and taxation advisors before subscribing, having regard to the risks involved, their own financial circumstances and their tax position.


Quintas Wealth Management Limited is regulated by the Central Bank of Ireland.

Donncha O’Callaghan - Book Signing at Quintas

Donncha O'Callaghan

Donncha O'Callaghan has kindly agreed to do a book signing of his autobiography 'Joking Apart' for Quintas clients. The date for this book signing is to be confirmed but if you are interested in attending please email Lorna Kelly at lorna.kelly@quintas.ie

Quintas Quarterly Economic Review
by James McCarthy
 
James McCarthy, Investment Analyst
James McCarthy, Investment Analyst

As the Eurozone continues to suffer from euro-breakup fears, this is having an impact on economic growth at home. With Ireland being an open economy, any slowdown in our export markets will reduce our growth rates, likely leading to more cuts.

Ireland has made promising strides forward in increasing our competitiveness. Despite this we still need to get our day to day spending down. In terms of austerity that is required, it would be sensible to begin significantly reducing large public sector pensions (and then go onto the next level), particularly since the government is effectively bankrupt. One example would be politicians. Former Justice Minister, Dermot Ahern, 55 walked away with €180,000 up-front and a pension of €128,000 every year, reduced to about €70,000 after tax (pay cheque of almost €6,000 per month) for the rest of his life.

Read more»
Reasons To Be Hopeful For Ireland Inc
by Kenny Kane
 
Kenny Kane, Director
Kenny Kane, Director

We are in the midst of one of the worst financial crises in the history of the state.  I am reminded of the deep recession here in the 80’s and while our current fundamentals in terms of

  • numbers in employment (c 1.8m vis a vie 900k),
  • interest rates (low single digits verses c. 20%) and
  • tax rates (higher tax band of 41% vis a vie c.70%)

are much stronger, we are carrying more personal debt and have become accustomed to a higher standard of living.

With the daily bombardment of negative economic stories from around the world and domestically the recent budget, it is difficult to find any news to give rise to optimism about our future, however there are key trends emerging which provide hope for Ireland’s future:

  1. Exports are increasing. Within the EU, Ireland was the 5th biggest exporter to the US in the first half of 2011.  Ireland accounted for 8% of total EU export to the US – c. €10.9bn
  2. Foreign Direct Investment in Ireland increased in 2010 over 2009 - €19.6bn verses €18.7bn
  3. Unemployment levels appear to have stabilised at 14.5%
  4. Falling wages and other costs have helped restore our competitiveness.

Read more»
Budget 2012
by Sean McSweeney
 
Sean McSweeney, Tax Director
Sean McSweeney, Tax Director

On Wednesday 7th December, the Minister announced the main taxation measures of Budget 2012.  With few surprises revealed, the key tax generating measures will be from Indirect Taxes, mainly VAT and Capital Taxes.

The best news for business in this Budget is that the Corporation Tax rate is unchanged. Retaining our ability to compete for and retain investment will fuel job creation and the export-led economic recovery which is essential for the country.  

With regard other taxes, there were minimal changes, with a reduction in commercial stamp duty and some welcomed measures to kick start the property market. 

Quintas recently issued an eflyer outlining some of the key points from the budget and if you would like to view a copy of this please click here.

Recent News
by Sarah O'Neill

Recent Events:

Cork-Dublin Business Dinner:

Quintas Wealth Management and IFG Corporate Pensions were delighted to co-sponsors the inaugural Cork Chamber, Cork-Dublin Business Dinner which took place in the Burlington Hotel on Tuesday 22nd November.  The aim of the event was to promote the strong connections that exist between Cork and Dublin businesses and enhance business relations between the two regions. 

The Cork Chamber honoured the outstanding contribution to business by a Cork person with a presentation to Mr Sean O'Driscoll, Group Chief Executive of Glen Dimplex.



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11-11-11 Seminar:

Quintas hosted a seminar on the 11-11-11 which aimed to assist our clients to achieve their export potential.  The speakers at the seminar were Martin Corkery of Enterprise Ireland and Paul French, IBM & Masters Degree Lecturer in Cloud Computing at CIT.  Martin advised the attendees on how Enterprise Ireland can assist their companies achieve their export potential and Paul gave a high-level technical overview on cloud computing and the strategy for its use. 

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Award Winners:

Quintas Wealth Management were awarded Best Distributor: Performance (Ireland) at the Euromoney Structured Retail Products AwardsTo view a flyer we issued recently on this award please click here.

News Features:

21 December 2011 - Cork Independent article by Tim McCarthy 'Back to Basics'.  To view this article please click here.

15 December 2011 - Cork Independent post budget interview with Sean McSweeney.  To view this article please click here.

15 December 2011 - Cork Independent coverage on the Cork Dublin Business Dinner.  To view this article please click here.

15 December 2011 - Cork Independent article by Mark Ryan 'New Year Resolutions'.  To view this article please click here.

10 December 2011 - Irish Examiner - Cork Chamber Christmas Lunch picture of Quintas attendees.  To view this article please click here.

10 December 2011 - Southern Star - Cork Dublin Business Dinner coverage.  To view this article please click here.

1 December 2011 - In Business article on the Cork Dublin Business Dinner.  To view this article please click here.

24 November 2011 – Cork Independent article by Sean McSweeney, Tax Director ‘Property Tax Incentives – Now Is The Time’.  To view this article please click here.

23 November 2011 - Irish Examiner – QWM/IFG – Cork – Dublin Chamber Event – To view a copy of the picture of the Award Presentation please click here.

23 November 2011 - Evening Echo – QWM/IFG – Cork – Dublin Chamber Event – Inaugural Dinner Hailed a Success.  To view this article please click here.

17 November 2011 – Cork Independent article by Eugene O’Callaghan, Partner ‘Small Business Year End Accounting Tips’.  To view this article please click here.

10 November 2011 – Cork Independent article by Fachtna O’Mahony, Partner ‘Protect Your Brand Investment’.  To view this article please click here.

3 November 2011 – Cork Independent article by Abina Kenneally, Partner ‘Top Tips for Saving Tax’.  To view this article please click here

27 October 2011 – Cork Independent article by Jim McCarthy, Partner ‘BES Investments’.  To view this article please click here.

26 October 2011 – Lynda McAuliffe, Client Relationship Executive was profiled in the Evening Echo ‘Lynda loves the financial world’.  To view this article please click here.

21 October 2011 – Irish Examiner, ‘Quintas Win Euromoney Award’.  To view this article please click here.

20 October 2011 – Cork Independent article by Anne O’Doherty, Business Development Consultant ‘Women, Protect Yourselves from Pension Shortfalls’. To view this article please click here.

14 October 2011 – Irish Examiner article by David O’Shea, Investment Director ‘Long Term View Delivers The Most Efficient Returns’.  To view this article please click here.

13 October 2011 – Cork Independent does a feature on Quintas entitled ‘Quintas looking for opportunities in times of crisis’.  To view this feature please click here.

6 October 2011 – Cork Independent article by James McCarthy, Investment Analyst ‘Diversified Economy’.  To view this article please click here.

29 September 2011 – Cork Independent article by James McCarthy, Investment Analyst ‘Gold…Where will prices go?’. To view this article please click here.

Quintas Blog

To view recent Quintas blog posts please click on the links below:

20/12/11 - Christmas - Time to reflect

07/12/11 - Protect Your Brand From Internal Sabotage

16/11/11 - Top Tips for Saving Tax

04/11/11 - Women: Protect Yourself from Pension Shortfalls

21/10/11 - The Independent Republic of Cork - Has the time come?

14/10/11 - Gold - Where will prices go?

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