Good morning and welcome to your Morning Briefing for Monday 2 September 2024. To get this in your inbox every morning click here.
‘Common’ for advisers to invest personally in VCTs before recommending to clients
It is “quite common” for financial advisers to invest personally in a venture capital trust (VCT) before recommending it to their client base.
This is what Praetura Investments partner Sam McArthur has told Money Marketing.
The Manchester-based early-stage investor is at the halfway point of its first VCT fund.
The £3m Praetura Growth VCT, which listed on the London Stock Exchange in April 2024, has invested £1.4m into five companies.
Closing the advice gap (and others)
For people to plan and act for the best financial outcome possible, they usually need qualified financial advice. However, as things stand, only a small number of people use financial advice – the so-called ‘advice gap’, writes LIBF director of financial services John Somerville.
According to the 2024 Lang Cat Advice Gap Report, just 9% of the UK population have paid for financial advice in the last two years, down two percentage points from the 2023 study. But the same survey revealed that 91% found the advice they took useful.
The advice gap exists and persists partly because people often only start thinking about their future economic self when it’s too late. They are busy paying for a home and raising children. They don’t really understand what they need to do and don’t want – or feel they can’t afford – to pay for professional financial advice.
Podcast: Nurturing the Next Generation: Insights from SJP’s Financial Adviser Academy
Join us for a special episode of the Money Marketing Podcast as we delve into the world of adviser development with Gee Footit, senior manager – Partnerships at St. James’s Place Financial Adviser Academy, the proud winners of the ‘Best Adviser Academy’ award at the 2023 Money Marketing Awards. Discover the secrets behind their success, gain insights into their innovative curriculum and mentorship programs, and explore the future of financial advice with this inspiring conversation. Tune in to learn how the St. James’s Place Financial Adviser Academy is shaping the next generation of financial advisers and empowering them to make a positive difference in the lives of their clients.
Quote Of The Day
We already know that not enough people in the UK have embraced investment. Only around a fifth hold stocks and shares, despite the fact they offer far more potential growth than cash savings.
– Hargreaves Lansdown head of personal finance Sarah Coles comments on the investment gap in the UK
Stat Attack
Research from Aegon has found multi-asset strategies funds are the top investment choice recommended by financial advisers.
90%
of advisers use multi-asset strategies for both accumulation and decumulation.
25%
of all client assets are held in multi-asset funds.
63%
of advisers recommend multi-asset funds for their diversification, followed by risk-rated fund selection (45%) and asset allocation expertise (35%).
60%
of advisers would recommend multi-asset funds to clients with less than £100,000 to invest.
63%
of advised assets now utilise outsourced solutions, such as multi-asset funds, DFMs or model portfolios built using external expertise.
Source: Aegon
In Other News
Informed Choice, a firm of chartered financial planners, will hold an event in memory colleague Graham Fishwick, who lost his battle with gastric cancer earlier this year.
Infinity Run: Cranleigh will take place on Saturday, 21 September from 12-5pm at the scenic Knowle Park in Cranleigh in Surrey.
All proceeds will be donated to Macmillan Cancer Support.
The Infinity Run: Cranleigh offers participants a unique challenge – to complete as many 2.5km loops as possible within a five hour window.
This event is designed for everyone, whether a seasoned runner, casual jogger, or prefer a peaceful walk through the park.
Every participant who finishes at least one loop will receive a commemorative medal.
Shelley McCarthy, managing director of Informed Choice, said: “The Infinity Run: Cranleigh is more than just a charity run; it’s an opportunity for our community to come together to remember a dear friend and colleague, Graham Fishwick.
“Graham’s passion for life and his commitment to helping others continues to inspire us every day.
“By participating in this event, we are not only honouring his memory but also supporting Macmillan Cancer Support, an organisation that provided invaluable care to Graham and continues to do so for many others.”
Registrations are now open for the Infinity Run: Cranleigh. With a cap of 200 participants, early registration is encouraged.
For more information and to register, visit icfp.co.uk/infinity-run-cranleigh or contact us at hello@icfp.co.uk.
From Elsewhere
Labour faces business warning on workers’ rights and tax hikes (Sky News)
ECB policymakers at odds over downturn’s impact, sources say (Reuters)
Far-right Alternative for Germany wins first regional election (Financial Times)
Did You See?
The amount of money invested into cash Isas so far this tax year has increased by more than a fifth (22%) compared to the previous tax year.
This is according to Hargreaves Lansdown, which reported £3.8bn was paid into cash Isas in July, taking the total so far this tax year to £23.7b.
Hargreaves Lansdown head of active savings Mark Hicks attributed this to the perception that chancellor Rachel Reeves will use the Autumn Budget to raise taxes.
Reeves has refused to rule out inheritance and capital gains tax rises after prime minister Sir Keir Starmer warned the Autumn Budget will be “painful”.
Regardless of what the Autumn budget may bring, Hicks said that “cash Isas remain incredibly popular” and that Hargreaves Lansdown data “shows this trend is likely to continue over the next few months as we get closer to the Budget announcement”.