Good morning and welcome to your Morning Briefing for Thursday 19 October 2023. To get this in your inbox every morning click here.
Advice access ‘limited’
Although the majority of people who have taken financial advice (89%) said it improved their confidence, over half (51%) said they have never taken advice.
Interactive Investor has published its great British retirement survey for 2023, which suggested advice improves people’s confidence in their retirement saving but access to it is limited.
Advised client numbers rise for AJ Bell
AJ Bell increased the number of advised clients across its platform business by 10% in the past year, the company’s latest trading report to September has revealed.
The firm saw advised customers rise by 13,885, while overall customer numbers increased by 50,880 to 476,532.
SJP: Bigger changes to come
Even by its own standards, St James’s Place (SJP) has attracted plenty of attention recently, writes Robin Powell.
The combined financial advice and asset management business saw its share price fall by more than a fifth last Friday, after revelations the firm was under pressure from the Financial Conduct Authority to reduce its fees and comply with the new Consumer Duty.
Then, on Tuesday, the company confirmed it was scrapping exit fees, though not, unfortunately, for another two years. And its ongoing advice fees are actually increasing.
Quote Of The Day
Investors are still heading for safe haven assets, like gold and the dollar, nervous about fresh volatility ahead.
– Susannah Streeter, head of money and markets at Hargreaves Lansdown, comments on a “wary mood” which is spreading on geo-political risk and high interest rates
Stat Attack
Research carried out by retirement specialist Just Group for its Countdown to Retirement research series has revealed an important gap among retired and semi-retired over 55s’ understanding about Inheritance Tax (IHT) despite increasing numbers falling into the threshold.
51%
Of those surveyed said that they did not know what the threshold is for the value of an estate to pay IHT
8%
Of respondents stated they were not sure
£325,000
The starting threshold for IHT
42%
Said that they did not know what the IHT thresholds are
50%
Said they did not have a clear understanding of the IHT rules and the amount that can be passed on before tax
Source: Just Group
In Other News
Sustainable investment firm Worthstone has selected Collidr to manage the Wellth Sustainable Investment Portfolios.
The portfolios are currently offered to end investors through 10 adviser firms.
As part of the collaboration, Collidr will manage the current range of four portfolios, which use Worthstone’s proprietary technology and screening techniques to shortlist funds.
Collidr will then apply its own ‘Quantimental’ investment approach, which applies behavioural research and AI-driven technology to screen and select funds suitable for each portfolio.
The business will then manage the portfolios’ ongoing performance.
London wins back Europe’s stock market crown from Paris (Bloomberg)
CVC prepares to launch IPO as early as next week (Financial Times)
US mortgage rates have hit a two decade high of 8% (BBC News)
Did You See?
Last week, NextWealth published its latest financial advice business benchmarks report, which found use of the term ‘planner’ is on the rise.
Around 31% of client-facing staff within the profession now use the term, according to NextWealth.
The term ‘adviser’ is by no means dying out, however, with 60% of staff still using it.
There are other terms client-facing staff use to refer to themselves as well.
NextWealth found in its report that 5% use ‘wealth managers’ and 2% use ‘investment managers’. A further 2% use ‘other’ terms.
