Good morning and welcome to your Morning Briefing for Tuesday 11 January, 2022. To get this in your inbox every morning click here.
Venture capital boosts portfolios
Research by Hardman & Co shows that adding venture capital (VC) to a portfolio can improve its risk/return profile.
It also suggests that VC can suit investors with a low-risk appetite as well as those with a high-risk tolerance.
Of course, that requires advisers to look at asset allocation holistically.
Hardman & Co head of tax enhanced research Dr Brian Moretta spoke to Money Marketing about what his research found.
Read the full story
Self-policing of online ads won’t do
The issue of fraudulent online advertising has been rumbling on for years now, but it really has been the last two years that we’ve seen a dramatic pick-up in activity, particularly with adverts that feature an impersonation of a financial services firm.
As early as March 2020, Andrew Bailey, while chief executive of the FCA, described the challenge of tackling fraudulent online adverts as like playing a game of “whack-a-mole”.
Hampered by the perimeter and lack of legal powers, the only weapon in the FCA’s arsenal is a website warning and the hope that their own adverts warning people of the dangers of ‘too good to be true’ online ads are seen by people before it is too late.
Read the full story
Ensuring competitive investment markets
The Financial Conduct Authority has laid plans for two market studies to ensure investment markets are competitive.
In response to a call for input, the FCA heard concerns that limited competition in the markets for benchmarks and indices, credit ratings and trading data may increase costs for investors and affect investment choices.
Read the full story
Quote Of The Day
The Omicron Covid variant may have led to more restrictions but the economic recovery remains resilient nevertheless, which means stocks don’t appear particularly vulnerable to a correction
– Luca Paolini, chief strategist at Pictet Asset Management, comments on the impact of Omicron on stocks
More advisory firms and wealth managers are buying investment companies on adviser platforms than ever before, according to data released by the Association of Investment Companies (AIC).
Number of firms which bought investment companies via adviser platforms in Q3 2021
Number the previous quarter
The previous record was set in Q3 2016
The value of purchases of investment companies in the first nine months of 2021
A 28% increase on the same period of 2020
The most-purchased investment company sectors in Q3 were:
UK Equity Income
Source: AIC and Matrix Financial Clarity
In Other News
Tilney Smith & Williamson (TS&W) has expanded its team in Exeter by appointing two financial planners. Mark Newman and Stephen Read join TS&W’s office in Sterling Court.
Newman joins TS&W from Kelsall Steele Investment Services where he worked as a senior financial planner.
At TS&W, Newman will focus on covering Cornwall. He is also a chartered member of the CISI.
Read joins from Succession Wealth where he worked as mergers & acquisitions manager. His previous experience saw him progress through a series of corporate finance, treasury and accounting roles at energy, technology and investment firms both in the UK and in Switzerland.
He is a member of the Personal Finance Society and the Chartered Institute of Management Accountants.
ZEDRA has announced the acquisition of independent pension trustee and governance services provider, PTL.
Founded in 1994, PTL acts for both defined contribution and defined benefit pension schemes, group life trusts and healthcare trusts.
This acquisition, which follows the acquisition of Inside Pensions in 2021, bolsters ZEDRA’s pension services in the UK.
ZEDRA’s Pension Services now consists of five offices in London, Reading, Leeds, Birmingham and St Albans and increases headcount to 70 dedicated pensions experts and support staff.
Baillie Gifford has appointed Ross Mathison as a portfolio manager of its Global Income Growth fund and Responsible Global Equity Income fund.
He joined existing managers James Dow and Toby Ross on the funds on 1 January 2022.
Mathison started working for Baillie Gifford in 2019 as an investment manager. He previously was at Aviva Investors. Prior to that, he spent nine years at Standard Life Investments.
The £814m Baillie Gifford Global Income Growth fund aims to achieve growth in both income and capital over rolling five-year periods, while delivering a yield higher than that of the MSCI ACWI Index over rolling five-year periods.
The £312m Responsible Global Equity Income fund seeks to invest responsibly in firms which can deliver both a resilient income stream and real growth in income and capital.
Premier Miton Group has said its assets under management (AUM) ended the quarter flat at £13.9bn.
In an update on its unaudited statement of assets under management (AUM) for Q1, the group said the closing AUM includes the previously announced winding up of the £101m Acorn Income Fund Limited and £87m of net outflows.
Chief executive Mike O’Shea said it was “disappointing” to experience net outflows following four quarters of net inflows totalling £830m.
However, he said, the net flows reflect a “challenging period” for UK fund flows in general, and for UK equities in particular.
“Importantly, our investment performance remains strong, with 80% of funds in the first or second quartile of their respective sectors since launch or fund manager tenure, with both our more established and newer funds performing well.”
The group also announced it will launch the Premier Miton Diversified Sustainable Growth Fund on 1 March 2022, managed by the same investment team behind the existing range of five Diversified, directly invested multi-asset funds.
The fund will focus on investments with a strong environmental, social and governance (ESG) profile and those which we believe offer longer-term sustainable growth themes.
Minimum wage increases not enough to shield poorest from rising prices (Financial Times)
Dollar stuck as traders wait on Fed’s Powell for new policy clues (Reuters)
New mortgage deals cost hundreds of pounds more just weeks after rate rise (The Telegraph)
Did You See?
Notwithstanding the consensus on the value of advice, the issue of affordability understandably generates disagreement, with many in the advice sector falling into one of two camps:
In his cover story for Money Marketing, Momodou Musa Touray says the focus should be on demonstrating value, building trust and using tech to ‘democratise’ this vital service.
Our illustrious Money Marketing team launched the Weekend Essay this year, a new series of personal opinion essays, which have garnered much attention. Here are the top 10 of 2021: Weekend Essay: The problem with footballers’ finances Justin Cash examines why footballers and fans alike are a prime target for high-risk investment schemes. Weekend Essay: Why we […]
Financial planning firm Drewberry has joined protection industry body Group Risk Development (GRiD). GRiD promotes the value of employee protection alongside awareness of group risk products and their benefits for employers and their workforce. The industry body says its membership has a collective wealth of experience built over years of operating in the group risk […]
What a whirlwind year this has been. It feels more like we’re approaching the end of 2020, than 2021. Amid the madness of Covid-19 lockdowns and restrictions, I landed myself a new job as chief reporter for Money Marketing in June. Strange as it was joining a new team remotely, my first six months have […]
Experts say there’s not just one advice gap but four. The focus should be on demonstrating value, building trust and using tech to ‘democratise’ this vital service
Clare Moffat, Senior Business Development Manager at Royal London, looks at when a trust could be a good option for your clients. Death benefit freedoms mean that clients in a fully flexible scheme can pass on their pensions to anyone. However, in some situations expressing a wish or nominating individuals might be problematic. Another tool to […]
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