Good morning and welcome to your Morning Briefing for Monday 6 November 2023. To get this in your inbox every morning click here.
Titan gets PE backing
US private equity firm Parthenon Capital has announced it will become the majority shareholder in Titan Wealth Holdings.
This week the Financial Conduct Authority has authorised change of control between Titan and Parthenon, formalising the strategic partnership between the two businesses.
Closing will occur later this month.
AI could kill us or help us
I don’t think I’m alone in being wary of AI. For me, it conjures up images of a spaceship controlled by a psychopathic machine, or an indestructible robot hellbent on destroying the human race.
Sure, the odds of AI becoming so clever that we’ll lose control of it and it will wipe us out are a very real concern.
But, in the short term at least, the conversation seems to have moved on from ‘AI could kill us all’ to ‘AI could help us all’ — and not just journalists.
In Conversation With… Jess Franks
Join Kimberley Dondo and Jess Franks, Head of Investment Products at Octopus Investments. They discuss democratising private markets, partnerships with Crowdcube, encouraging pension funds to invest in high-growth companies, EIS opportunities, and the role of advisers in shaping retail investors’ strategies. Explore the evolving private market landscape.
Quote Of The Day
As financial and non-financial reporting is increasingly intertwined, we believe our insights should be a key driver in asset allocation conversations of GSS Bond fund managers.
– Max Roper, research analyst at MainStreet Partners, comments on the firm’s latest quarterly green, social and sustainability (GSS) bonds report, which highlights key drivers for the allocation to use of proceeds and how these impact investors
Stat Attack
In the midst of a global landscape characterised by mounting inflationary pressures, geopolitical tensions, and various economic challenges, foreign currency reserves play a crucial role in safeguarding a nation’s economic stability.
With this in mind, FOREX.com commissioned an analysis of the foreign exchange reserves held by 94 countries between Q1 2019 – Q2 2023, to identify which country has the largest forex reserves.
| Rank | Country | Volatility (Standard Deviation – Millions) |
Forex Reserves Q1 2023 (USD) |
Forex Reserves Q2 2023 (USD) |
| 1. | China, P.R: Mainland | 62,502.41 | 3,183,872,000,000 | 3,192,998,000,000 |
| 2. | Japan | 74,498.27 | 1,128,749,000,000 | 1,120,152,000,000 |
| 3. | Switzerland | 96,238.57 | 813,897,170,000 | 809,213,980,000 |
| 4. | India | 56,670.20 | 509,691,300,000 | 527,978,590,000 |
| 5. | Saudi Arabia | 25,426.10 | 413,320,420,000 | 417,924,350,000 |
| 6. | Russian Federation | 29,054.59 | 417,859,400,000 | 410,779,300,000 |
| 7. | China, P.R: Hong Kong | 18,075.62 | 413,347,000,000 | 400,522,000,000 |
| 8. | Republic of Korea | 19,447.07 | 400,570,000,000 | 396,155,000,000 |
| 9. | Singapore | 50,380.75 | 298,647,300,000 | 316,692,000,000 |
| 10. | Brazil | 26,918.28 | 283,699,150,000 | 291,512,600,000 |
Source: FOREX.com
In Other News
Defaqto has announced its integration with new fintech challenger Plannr is now live.
Benefitting users of both systems, Defaqto Engage now connects with Plannr’s customer relationship management (CRM) technology for advisers, planners, and wealth managers.
The new API represents an important step forward in a market where financial advisers typically use multiple different pieces of software yet seek a seamless, compliant journey.
Advisers can transfer client product and fund information from Plannr to Engage. Resulting research and reports from Engage are then sent back to Plannr.
This means user-friendly client records are coupled to the best source of research, with consistent methodology and focus on compliance.
Legal and General Investment Management (LGIM) has announced the launch of the L&G Future World ESG Emerging Markets Government Bond Local Currency Index Fund, offering investors access to a significantly enhanced sovereign risk ESG framework for the integration of ESG across sovereign debt.
This fund will be followed by the launch of the L&G Future World ESG Developed Markets Government Bond Index Fund and the L&G Future World ESG Emerging Markets Government Bond (USD) Index Fund, in the next few months.
Alongside a range of environmental, social and governance (ESG) factors, the funds will also incorporate a new proprietary fourth ESG pillar, referred to as “Geopolitical stability/risk”.
This risk factor aims to identify risks beyond headline sustainability metrics, which we believe provides a more comprehensive risk assessment of investing in government debt.
As per research from the World Bank, there is an ingrained income bias that impacts sovereign ESG scores and the fund seeks to eliminate this.
The aim is to facilitate a fairer allocation of capital to nations which require debt issuance to advance their economies and reward those countries that are on a path to improving their ESG credentials.
Allfunds has announced that global investment firm KKR is the latest member to join the Allfunds Private Partners programme (APP).
The APP programme, which was launched earlier this year, is successfully establishing a tight network of collaborators who are dedicated to improving access to private market funds for distributors.
The programme combines the deep asset class expertise and leading investment management capabilities of its members – prominent alternative asset management and financial services firms – with Allfunds’ global distribution experience, sophisticated technology, and dedicated specialised teams.
By joining the APP programme, KKR will effectively broaden its distribution reach for its strategies, targeting several key segments, including wealth management and private banking, where appetite for private market investments remains strong.
KKR will bring a wealth of knowledge and experience to the group as a whole as a leader in the alternative investment industry with a 47-year track record.
China appoints He Lifeng as head of office of the Central Financial Commission (Reuters)
European stocks start the week slightly higher (CNBC)
Musk releases new AI chatbot ‘Grok’ in bid to take on ChatGPT (Financial Times)
Did You See?
In October 2023, three open-ended UK property fund closures and suspensions were announced by St James’s Place (SJP), M&G Investments and Canada Life.
UK property funds had been experiencing outflows since 2018, writes reporter Darius McQuaid.
According to Calastone, which claims to be the largest global funds network, during this five-year period only one quarter (Q2 2022) saw inflows into UK property funds.
Meanwhile, Morningstar Direct data showed that 2022 was the year with smallest net outflows observed annually since 2018.
Quilter property research analyst Oliver Creasey told Money Marketing the market is “far from good” adding that “no-one has launched an open-ended property fund in years”.
