Good morning and welcome to your Morning Briefing for Monday 25 November 2024. To get this in your inbox every morning click here.
Clients come to financial advisers too late for retirement planning
Over a fifth (22%) of clients come to financial advisers too late for retirement planning, as the benefits of taking early advice “cannot be overstated”.
This is according to Invesco’s UK retirement study, which also found that 64% of advisers said people who seek advice during accumulation have a better understanding of pension options than those who only take advice at retirement.
MKC Wealth acquires Stockport and Urmston IFA firms
MKC Wealth has announced the acquisition of Stockport-based IFA Warr & Co and Halstead Independent Financial Management in Urmston, for undisclosed sums.
In 2012, after Jeff Crewdson and Steve Prosser joined Warr & Co Chartered Accountants, they set up a separate business, Warr & Co Independent Financial Advisers.
Crewdson will retire after a short handover period, while Prosser joins MKC Wealth along with two support colleagues, based at MKC’s Stockport office.
Where has such a political month left markets?
It’s often said that economics matters more than politics where financial markets are concerned, writes Royal London Asset Management head of multi-asset Trevor Greetham. Recent events challenge this view.
Ten-year gilt yields have risen by the best part of a per cent since mid-September after a bumper UK Budget and victory for Donald Trump caused investors to increase their estimates for global bond issuance.
Meanwhile, US stocks and the dollar reacted very positively to the outcome of the US election. We expect stocks to continue outperforming bonds, with economics coming once more to the fore.
Quote Of The Day
Positivity continues to pulse through the FTSE 100 at the start of the week, with the blue-chip index heading higher. After putting in the best performance in months at the end of last week, investors continue to show optimism
– Hargreaves Lansdown head of money and markets Susannah Streeter on the performance of the FTSE 100 during the start of the week
Stat Attack
Research from Investec Bank shows how many people say they have tried to switch to a best-buy savings account in the past two years.
15%
of people say they have tried to switch to a best-buy savings account in the past two years, only to find that it had closed to new customers or that the interest rate was no longer available.
56%
said they had fallen victim to this problem more than once in the past 12 months.
51%
of these people were trying to open a specific fixed-rate account at the time, before discovering it was no longer available.
28%
were attempting to open a particular instant-access savings account, while 13% had set out to open a specific notice account.
Source: Investec Bank
In Other News
HSBC Asset Management (HSBC AM) has appointed Pete Scott as head of innovation credit as the business extends its alternatives credit capabilities through the development of its venture debt strategy.
The new capability is being developed in partnership with HSBC Innovation Banking. The asset selection will be managed by HSBC AM, working in partnership with HSBC Innovation Banking in a similar arrangement to previous direct-lending strategies by HSBC AM.
HSBC AM’s venture debt strategy will invest in a portfolio of senior secured loans to growth and late-stage VC-backed tech and life-science companies; leveraging HSBC Innovation Banking’s presence in the UK, US and Europe, as well as other innovation hubs that the bank serves.
Scott has been appointed to this newly created role and brings over 30 years’ experience in the industry. He will be based in San Francisco and is responsible for building HSBC AM’s venture debt team and bringing a product to market designed to scale up fast-growing businesses that are venture capital backed.
Aviva has today announced the completion of a £1.7bn pensioner buy-in with the National Grid Electricity Group of the Electricity Supply Pension Scheme.
The transaction, which completed in October 2024, included transitioning the Group’s existing longevity swap with Zurich Assurance to Aviva, and insures the benefits for 5,800 pensioner members of the group.
Aon acted as the sole transaction adviser, covering actuarial, investment and broking aspects. Legal advice to the Group Trustee was provided by DLA Piper UK and the Scheme Trustee was advised by Mayer Brown International.
Oil prices ease, Russia, Iran tensions check losses (Reuters)
UK property sector hit by fears of resurgent inflation (Financial Times)
Half of British firms will cut jobs after Budget tax hikes, CBI says (Bloomberg)
Did You See?
Karen Barrett, founder and CEO of Unbiased, has been named Great British Entrepreneur of the Year at the Allica Bank Great British Entrepreneur Awards.
Barrett also secured the Equity-Backed Entrepreneur of the Year award, celebrating her resilience and the significant impact of Unbiased in the financial advice sector.
Now in its 12th year, the awards, sponsored by Allica Bank, are often called the “Grammys for Entrepreneurship” and honour innovators shaping the UK economy’s future.
Barrett expressed her delight, saying, “I’m surprised and honoured. It’s been an incredible journey and I’m proud of what we’ve achieved at Unbiased.”
Francesca James, founder of the awards, highlighted the winners’ influence, stating, “This year’s recipients generate over £3bn in turnover and employ more than 20,000 people. They are transforming industries and inspiring future leaders.”
The recognition underscores Unbiased’s efforts to empower consumers in making informed financial decisions.
