A Look Forward to 2019 | IFA 74 | Dec '18 / Jan '19

For today’s discerning financial and investment professional

2019: A tough call December/Januar y 2019

ANALYSIS

REVIEWS

ISSUE 74

COMMENT

INSIGHT

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CONTRIBUTORS

Ed's Welcome

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Ed's Rant 2019: A tough call. Michael Wilson reads the runes for what looks like a challenging year

Brian Tora an Associate with investment managers JM Finn & Co.

12 Better Business – The power of internal marketing Practical tips on how, by sharing your victories, you can build a more effective – and more satisfied – team in your financial planning business

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Can bonds still be viewed as a core asset class? Brian Tora believes it’s too early to write off bonds just yet

Richard Harvey a distinguished independent PR and media consultant.

Neil Martin has been covering the global financial markets for over 20 years.

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Nothing ventured, nothing gained. Sue Whitbread talks to Barry Downes of Sure Ventures about the exciting prospects he sees from investing in software companies

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Swings and roundabouts: Nick Wall, co-manager of Merian Strategic Absolute Return Bond Fund, assesses the outlook for fixed interest markets

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Fixed income, what is it good for? Absolutely nothing? David Jane of Miton on what 2019 might hold for bond markets

Brett Davidson FP Advance

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Do you hear what I hear? Sapphire Capital Partners analyses investment threats and opportunities for 2019

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Business planning for 2019: Louise Jeffreys gives practical tips on how to nail your strategic plan

Michael Wilson Editor-in-Chief editor ifamagazine.com

Sue Whitbread

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The most wonderful time of the year? Richard Harvey has seasonal concerns about splashing the cash

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Career opportunities from Heat Recruitment

Editor sue.whitbread ifamagazine.com

Alex Sullivan Publishing Director alex.sullivan ifamagazine.com

Rachel Bray Head of Design rachel.bray cliftonmedialab.com

IFA Magazine is published by IFA Magazine Publications Ltd, Arcade Chambers, 8 Kings Road, Bristol BS8 4AB Tel: +44 (0) 1173 258328 © 2018. All rights reserved ‘IFA Magazine’ is a trademark of IFA Magazine Publications Limited.

No part of this publication may be reproduced or stored in any printed or electronic retrieval system without prior permission. All material has been carefully checked for accuracy, but no responsibility can be accepted for inaccuracies. Wherever appropriate, independent research and where necessary legal advice should be sought before acting on any information contained in this publication.

The value of investments and the income from them can go down as well as up and you may not get back the amount originally invested.

IFA Magazine is for professional advisers only.

Full details and eligibility at: www.ifamagazine.com

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E D'S WE LCOM E December/Januar y 2019

O come all ye faithful Bah humbug. Now we know that Christmas is supposed to be a time for giving, sharing and of good will to all men – and women of course. It’s also pretty clear that not everyone subscribes to that train of thought, as Mrs May will probably attest. It’s been two and a half years since the UK voted to leave the EU. As this edition of IFA Magazine goes to press there are so many scenarios which might play out. Whether or not the outcome of the process will result in Mrs May’s deal ultimately being signed off by the UK parliament in December is anyone’s guess. Will the UK population face a second referendum or a general election? What about no deal? It’s all as clear as your Christmas eggnog. With Mrs May struggling to find many faithful supporters– let alone being joyful or triumphant - these next few months are going to be interesting to say the least.

as 2017 – and indeed they forecast the same again for 2019. Still clear as that Christmas eggnog?

So, what about those faithful IFA Magazine readers who may be trying to work out what on earth this all means for asset allocation decisions and assumptions for the impact on clients’ financial plans going forward ? As always, such decisions are based on making the best assumptions you can with the information that you have available. At least that doesn’t change. Whilst we don’t have all the answers for you, at least we can offer up some perspective, opinion and analysis in these pages to help you consider what lies ahead.

In the meantime, it remains for me to say a very big thank you to all those who have contributed articles for us throughout 2018. We really appreciate you sharing your opinions, insight and knowledge with us.

Also, we extend seasonal thanks to all our readers and supporters. We hope that you have a restful Christmas and a happy new year – whatever the Brexit winds blow in our direction.

If you read the news headlines, you’d be forgiven for thinking that the global economy is on a bit of a rollercoaster ride. With hostile winds of trade wars, Brexit, Chinese debt problems, tensions between Italy and the EU, jittery stock markets and a whole lot more.

There again, according to the IMF, the global economy is on track to grow a healthy 3.7% in 2018 - the same

In this month’s edition of IFA Magazine, Michael Wilson dusts down his crystal ball and looks ahead to what 2019 may have in store for investors. When it comes to fixed interest, we ask whether there is likely to be pain ahead for bond markets. Thanks to Brian Tora, Miton’s David Jane and Merian’s Nick Wall for giving us their opinions on this particular topic.

As you flick through this digital edition, there’s plenty more reading material on a range of different themes.

This includes the usual pearls of wisdom from Brett Davidson, some useful end of year business strategy planning tips from Louise Jeffreys of Gunner & Co., an interview with Barry Downes of Sure Ventures and a whole lot more.

Sue Whitbread Editor IFA Magazine

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E D'S RANT December/Januar y 2019

2019: A tough call Spare a thought for Michael Wilson, as he reads the runes for what looks like a challenging year

The easiest way to make a fund manager wince, I find, is to ask him what his economic predictions are for the coming new year. I’ve been trying to get the perishers to nail their colours to the mast for the last thirty Christmases or so, and I can’t remember very many managers who didn’t stop, cough nervously, and ask me to please make it perfectly clear to the readers that they were only making their guesses in a light-hearted, sporting seasonal spirit, and that their fingers were firmly crossed behind their backs?

You can hardly blame the poor devils for trying to stay on the fence this time. A manager who expects a bearish new-year retrenchment is damned if he says so, and damned if he doesn’t. I mean, who’d want to be the exception who missed out on the Christmas surge because he was busy being the harbinger of doom while everybody else was raking in the unexpected seasonal wave or profits? Who’d want to have to tell his boss that the hefty December outflows from his fund were down to his gloomy prognostications?

Surely, you might ask, he’d be able to glory in his prescient judgement if January did indeed turn cold on him? Well, thank you very much, but he’d probably rather not take the career risk. You know what they say about tall poppies.

Take it from the top Which is why I’ve decided to give the managers a break this year, and to turn my attentions instead to the pure(r) economists and to all the fixed interest experts who tend to keep their noses pressed a little bit closer to the fiscal grindstone than the rest of us. When a 0.5% shift in the yield can turn your bond portfolio upside down, you keep your eyes on the maths and the algorithms, and to hell with fashion or politics or the vagaries of Mr Market.

Heck, if I wanted to go just a little further off the wall I’d probably have asked the betting houses, who live or die by their calculations. But maybe that would have been just a small step too far?

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2018 so far….

Last February, IFA Magazine said that the incoming year was a wall of worry. It wasn’t just Trump who was creating pan-global uncertainty, we said – it was also China, the oil price, the Brexit negotiations and a deteriorating situation in the Middle East. We also said that, although corporate profits in America seemed to be on the up, the ten-year Shiller p/e ratio (at around 33.3) didn’t leave very much more room for upside.

And that other markets might prove more attractive.

Why, we might even have nominated London as a possible beneficiary.

We were, of course, wrong. Donald Trump’s $1.6 trillion tax handout was a basically fistful of empty calories, just as we’d predicted, but its effect on America’s economic morale turned out to be outstanding in terms of the confidence it induced. By the mid-autumn the beneficial effect on Wall Street was so great that the dollar economy swiftly sucked all the liquidity out of Asia, Europe – and, yes, Britain.

By the fourth week of November, US GDP growth for 2018 was being guesstimated at 2.9%, compared with 2.1% for the Euro area and just 1.3% for the UK. And the S&P had put on 1% against the FTSE’s 9% loss. To which you’d have to add another 6% for the pound’s slide against the mighty dollar. Ouch, that might be mainly because of Brexit, but it still hurts.

Things weren’t a whole lot better for the Eurozone, with the FTSE Eurofirst 300 losing 9%, plus another 6% for the euro/dollar slide, and a ghastly 13% fall in the German Dax (plus the euro slide). So much for sneaky Berlin playing unfair against the long-suffering US. And for 2019?

Aaah, say the wise heads, that’s where the passive approach comes in. Forget all the active management hype, and sail your boat instead on the rising and falling tides of the market, and keep your eyes firmly on the far distant horizon. It’s also what an IFA would recommend to many of his clients. Pound cost averaging and all that. Sleep easy.

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E D'S RANT December/Januar y 2019

They’re not alone. Right now, you’re probably aware that active funds are having a torrid time, with worldwide investors pulling more than $86 billion from active funds during the third quarter – the heaviest outflows since third-quarter 2011, according to the Financial Times. But for those of us who still prefer active management – or just the active/passive strategy of choosing the right passive funds at the right moments – the need for vigilance, perspiration and a critical sixth sense is as important as it ever was.

Nothing’s changed.

The OECD’s View So, what’s in the financial runes for 2019? The Organisation for Economic Co-operation and Development published its autumn Economic Outlook on 21st November, and it didn’t fill anybody with unbounded optimism. This is looking like a challenging period.

But perhaps not quite dispiriting as all that. On the minus side, the report said, the global economic upswing, seems to have peaked. Global growth is projected to shrink next year to 3.5%, compared with 3.7%, and by another 3.5% in 2020. Although many countries have seen unemployment at record lows, combined with emerging labour shortages, there were “rising risks” that “could undermine the projected soft landing from the slowdown”. (http://www.oecd.org/ eco/outlook/economic-outlook ) “Trade growth and investment have been slackening on the back of tariff hikes,” the report said. “Higher interest rates and an appreciating US dollar have resulted in an outflow of capital from emerging economies and are weakening their currencies.

Monetary and fiscal stimulus is being withdrawn progressively in the OECD area.”

Trade tensions are already harming global GDP and trade, the OECD says; and it added that, if the US were to raise tariffs on all Chinese goods to 25%, with retaliatory action being taken by China, then world economic activity could be much weaker.

“By 2021, world GDP would be hit by 0.5%, by an estimated 0.8% in the US and by 1% in China. Greater

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uncertainty would add to these negative effects and result in weaker investment around the world.” Indeed, the report “also shows that annual shipping traffic growth at container ports, which represents around 80% of international merchandise trade, has fallen to below 3% from close to 6% in 2017.”

The OECD repeated its earlier warnings about slowing growth in China, although that may not be entirely bad news: the change, it said, resulted partly from new US tariffs on Chinese imports, but also from tighter rules on “shadow banking” outside the formal banking sector, combined with a more rigorous approval process for local government investment.

But it confirmed recent market expectations that new stimulus measures from the Beijing central bank “may help to bolster slowing growth and help engineer a soft landing”.

So far so good. But failing that, it adds, “a much sharper slowdown in Chinese growth would damage global growth significantly, particularly if it were to hit financial market confidence”.

Part of the problem, it says, is that policy-makers’ room for manoeuvre in the event of a more marked global downturn is somewhat limited. “With very low interest rates in many countries – particularly in the euro area – and [with] historically high debt-to-GDP levels (both public and private),” The point here is that the OECD says it’s important to be able to use tax and spending policies to stimulate demand if growth should weaken sharply. And, with that sort of freedom in short supply, “co-ordinated action will be far more effective than countries going it alone”. (Are you listening, Mr Trump?). Such stimulatory action, it says, “should be focused on growth-friendly measures, such as investment in physical and digital infrastructure and targeting consumption spending more towards the less well-off.”

Let’s add to that assessment a telling little note from the blog that OECD chief economist Laurence Boone wrote back in September. The downside of US trade policy, she wrote, is that Trump’s own tariff wars are already actively hurting US producers. “The prices of washing machines for US consumers jumped by 20% between March and July this year after the imposition of tariffs,” she wrote. “And US imports of steel from

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E D'S RANT December/Januar y 2019

China are sharply down, just like Chinese imports of cars from the US.” Higher tariffs, she insists, will generally mean higher prices for consumers, less investment, and ultimately losses in productivity and standards of living. “Just consider,” she adds, “that 13 million jobs in the US and 8 million in Japan depend, directly or indirectly, on foreign consumption.”

But the impact of the stronger dollar on emerging markets is a more serious matter. Rising interest rates in the United States, and the associated appreciation of the US dollar, have combined with a shift in risk sentiment to result in sizeable currency depreciations in many emerging-market economies, the interim report says. And “countries with large external deficits or high foreign-currency denominated debt have been particularly exposed, most notably Argentina and Turkey.”

Is there any good news at all? Yes, Boone says, the lessons of 2008 have been learned on the financial front. “Banks are now better capitalised, and financial regulation has

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been stepped up thanks to a large extent to international coordination.” But financial risks are on the up again.

Debt has reached “unprecedented highs”, she says, particularly in the public sector and for corporate debt.

China is still having to deal with inflation (and, in the opinion of other observers, with an overload of bad bank det). And generally, the march of less-regulated shadow banking is causing him some worry.

Trade worries? What trade worries?

It’s at this point that my research took me in an unexpected direction. Who better to advise on the state of the fiscal and trade economy than Mohamed El-Erian, the chief economic adviser at Allianz who once co-piloted the astoundingly successful PIMCO bond fund portfolios with Bill Gross? A man who eats, sleeps and dreams about fiscal balances and suchlike?

Was Mr El-Erian concerned about the impact of Trump’s fiscal loosening on the US economy? Not as far as could be seen from a bullish interview

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E D'S RANT December/Januar y 2019

he gave to CNBC last month at the Barclays Asia Forum. The IMF was wrong to have downgraded its 2019 forecast from 2.7% to 2.5%, he said - and he wasn’t shy about why.

crude soared to $86 in October as Trump’s Iran sanctions were confirmed by the White House, but they were back down to their mid-year $70 level by the time November hove into view.

"We've got three drivers of domestic demand all hitting at the same time: government spending — which is going to get stronger not weaker — household spending, and business investment," he told CNBC. And 3% growth for both 2018 and 2019 was definitely in the frame, he added.

So what’s new? Firstly, that you’d have to go back to 2014 or 2015 to see any kind of a price decline happening in the final quarter of the year – normally the incoming winter in the northern hemisphere settles those kinds of doubts. This year’s fluctuations have been significantly down to Trump’s actions toward Iran and toward Saudi Arabia, which had signalled a tightening of its oil exports as the year draws to an end.

If there was a problem, he explained, it would probably come from outside the US’s booming economy, and not from within it. The concern, he said, was about possible “spillbacks”, either through America’s own actions in triggering a full-scale trade war (as distinct from what he termed “trade skirmishes”), or because of “major disruptions in Europe and in the emerging world."

One thing we forecast correctly was that oil prices would prove to be a wild card, with no apparent correlation to demand but with plenty to supply disruptions

There was, he conceded, a 25% chance of a fullscale trade war developing. Wasn’t this on the low side, he was asked? Well, China remained a problem during 2019, he said, but he was still bullish about the way it would go.

“My assumption has been that China will understand what Korea, Mexico, Canada and the EU have [already] understood," he told CNBC. "If the U.S. decides to focus on sticks and not carrots, and if the U.S. is willing to incur the cost of trade skirmishes, it wins. It wins every single bilateral trade conflict."

Trumpian logic, then. Divide and rule. But is he correct? We must wait and see. I haven’t noticed the EU going soft on trade yet, have you?

Oil, still a random walk One thing we forecast correctly was that oil prices would prove to be a wild card, with no apparent correlation to demand but with plenty to supply disruptions. Last January’s $64 per barrel for Brent

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One oddity of the petroleum industry is that the industry keeps its production in the ground until just before it’s needed. Only about 60 days’ worth of crude oil consumption is usually being stored at any one time, either in land-based tanks or bunkers or in floating tankers. (Why? Could you imagine what a logistical nightmare it would be to do it any other way?) And that means that short-term disruptions can have massive shock effects. The world would be starting to panic if even a quarter of those aboveground reserves were to get used up.

That’s why every little political spat, every trade threat and every minor gunboat incident has huge price implications. As I write, four countries with some of the largest oil reserves in the world – Saudi Arabia, Iran, Russia and most importantly Venezuela – are in the political crosshairs. It’s a good job that, in oil at least, the balance between supply and demand is generally run by the markets and not by the politicians.

QE and the bank rate Probably the most important factor in the new year is also the most obscure and unfashionable. President Trump’s central bank governor, aka Fed chairman Jay Powell, isn’t the only bank supremo in the world who’s been winding back on the colossal issuance of quantitative easing that’s been transforming the investment economy during the last ten years or so.

And his programme of carefully-staged bank rate rises is in step with much of the developed world.

Even though it annoys the heck out of his boss, President Trump, who seems to see higher rates as a betrayal. You can’t please everybody.

In Europe, in the UK, and maybe even in Japan, central banks have been taking steps to slow the amount of new ‘unfunded’ liquidity that they’re pouring into the developed economies of the world.

While simultaneously raising bank rates, inch by cautious inch, in an attempt to tighten the reins of

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their respective economies and to reinstate the sense of a need for responsible lending.

past its peak, and it’s all going to be downhill from here for a while.

There’s no doubting that the world’s recovery from the 2008 crisis would have been much slower without the surge of new investment capital that QE provided. But its period of usefulness passed a couple of years ago, and the regrowth of inflationary pressures in western nations ought to be sounding a time’s up message.

The European bloc project is either gasping for breath or else steeling itself for its next forward leap. The US President will have to back down in the face of a Democrat-controlled House, unless of course he decides to invoke national security and rule by decree.

One word of caution, though. In China, the swamping of consumer and property markets with easy credit has been quite rightly ended, although there are those who think that Beijing may reopen the money taps if GDP growth drops below 6% next year.

So much to play for You won’t have missed all the doom-saying this year.

The great rotation from fixed interest into equities is moving along, and soon there might be attractive opportunities in bonds again. Or, alternatively, the 25 year equity bull run is moving into silly-money territory. The global industrial cycle is moving

The US President will have to back down in the face of a Democrat-controlled House, unless of course he decides to invoke national security and rule by decree

It ’s becoming clear that business and economics aren’t in the driving seat as much as we usually suppose – instead, the politicians and the tacticians and even (sometimes) the generals are in charge of market trends

Japan continues to struggle for growth, or sometimes even for a role. China and Russia may continue their rapprochement, to the general concern of many. And Britain, of course, may declare a People’s Vote which cancels Article 50…..

Or not. It’s becoming clear that business and economics aren’t in the driving seat as much as we usually suppose – instead, the politicians and the tacticians and even (sometimes) the generals are in charge of market trends. It was ever thus, of course. So welcome to 2019, and good luck to all who sail in her.

Your guide to the 2019 hotspots 21 January: February to June: February: 29 March: April/May: May and November (latest): 23-26 May: 22 July: 23 September: October: 20 October: 21 October: November: By 5 November:

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Davos World Economic Forum, Switzerland Parliamentary elections in Dominica, Panama, Guatemala, Haiti.

Presidential elections in El Salvador UK provisionally scheduled to leave EU (subject to extensions) India general election Australian senate and parliamentary elections European Parliament election NATO annual summit, Brussels NATO fall summit, California Presidential elections in Argentina and Uruguay Greece general election Canada federal elections Polish general election Israel general election

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December/Januar y 2018

Eight Members Club London presents two venues in the heart of the city. The clubs offer members a wonderful space in which to both work and of course relax while taking advantage of our wonderful restaurant and bars, with an amazing event space, pool table, cinema and over 10 beautifully appointed meeting rooms.

To discover more go to www.eightclub.co.uk.

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BETTE R BUSI N ESS December/Januar y 2019

The power of internal marketing Brett Davidson of FP Advance gives practical tips on how, by sharing your victories, you can build a more effective and more satisfied - team in your financial planning business As a financial planner, the work that you do makes a difference to people. You know that. And the clients you make that difference for know too.

But do you ever communicate that to your team?

I don’t mean accidentally or by osmosis. I mean deliberately and proactively.

Typically, advisers do some amazing work and there’s no one else in the room to see it. That’s a real shame, because seeing and understanding what great financial planners do for their clients is an important part of your marketing and recruitment strategies.

Obviously we all need to engage in some external marketing. The type that lets potential clients and suppliers outside of your business know what you do, and how great it is.

Typically, advisers do some amazing work and there’s no one else in the room to see it

However, an often overlooked counterpart is your internal marketing. That is, letting everyone on your team see under the bonnet of what you do for clients.

There can be two key aspects to your internal marketing communication process; the informal and formal.

The informal Don’t be afraid to tell your team about anything good that occurred in your client meeting, as soon as you leave that meeting room. Tell them then and there.

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You might focus on the impact the advice is having on the client’s life or choices. That’s your informal process.

The formal Formally you might prepare a specific example or case study to share at monthly/quarterly State of the Nation (SOTN) meetings with the whole team.

You could go even further and describe the role every single person played in delivering a particular outcome. In a smaller firm, with an owner and a support person or two, that will be pretty easy. In a larger firm you really need to think about who has played a role.

For example: The Adviser – managed the client throughout the process, asking great questions and making the client feel comfortable by explaining the complex more simply.

The Paraplanner – did the research and technical work and built the cash flow model. They may also have added some small detailed technical input that created an optimal tax or investment outcome on top of the broader strategy.

The Administration Team – chased information, badgering any slow life insurance or pension companies. They also ensured all paperwork was completed, submitted and received correctly first time, and followed everything through diligently.

They might have even picked up errors in paperwork from other companies, thereby avoiding a later problem for the client and the business.

The Receptionist – gave a great, warm greeting every time the client attended a meeting, and made the client feel cared for throughout the journey.

The PA – ensured everyone was in the right place at the right time for each meeting. The high level of efficiency also generated a feeling of safety for the client.

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BETTE R BUSI N ESS December/Januar y 2019

The Finance Director – made sure the company was solvent, so no one had to spend time fretting about financial issues. This allowed everyone to give the client 100% of their attention at all times.

The Practice Manager – ensured work flowed efficiently through the machine, and took care of a lot of under-the-radar issues so the lead advisers, owners, and team could focus on their day jobs 100%.

The Marketing Team – made the company look good to the wider world and ensured frequent and clear communication to existing clients. In fact that’s how we picked up this client in the first place, as a result of a referral from an existing client who has been kept informed and warm due to the marketing team’s efforts.

Share the good news Most employees want to work somewhere that’s enjoyable, pays well enough, and does some good in the world. A great financial planning firm fits that bill really nicely.

Individually, the work some team members do may only be a small section of the larger work being done for clients, but try living without that support for a while, and you’ll realise there is no big or small contribution.

Good people want to do meaningful work that makes a difference; it’s not just Millennials

It’s why they count ‘assists’ in basketball or football, because some players are great at making other players look good. After all, the final result is all about great team work.

Communicating frequently with your team and sharing the warm feelings that come from delivering great outcomes, are key to making yourself an attractive employer. It makes sure that you are a firm where team members will thrive and develop their careers for the long term.

Good people want to do meaningful work that makes a difference; it’s not just Millennials.

Individually, the work some team members do may only be a small section of the larger work being done for clients, but tr y living without that support for a while, and you’ll realise there is no big or small contribution

When you start communicating internally about great client outcomes, you show how the work that everyone on the team does is connected to the final client outcomes. The stuff that you, as an owner/adviser, get the satisfaction of delivering.

When you take the time to show people the difference they make, you allow them to feel good about themselves and their work. As all the job satisfaction surveys will attest, being recognised for one’s contribution is right up there in making your team feel appreciated.

If you can get this right you can attract and retain good quality people, which is the secret to your own success as an individual and as a business.

So make sure you help your team to know and understand the difference the business makes to its clients.

Let me know how you go.

About Brett Davidson Brett is the Founder of FP Advance, the boutique consulting firm that helps financial planning professionals to advise better and live better.

He is recognised as one of the leading consultants to financial advisers in the UK. You can follow Brett online and via social media: You can follow Brett online and via social media: Twitter: @brettdavidson Facebook: www.facebook.com/FPAdvanceLtd LinkedIn: www.linkedin.com/in/davidsonbrett Website: www.fpadvance.com

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BRIAN TORA December/Januar y 2019

Can bonds still be viewed as a core asset class?

Despite rising interest rates and the threat of inflation bringing potentially negative winds for bond investors, Brian Tora argues that it is too early to write off bonds just yet

It is remarkable how much has changed in the world of investment over the years. When I started out in this profession more than half a century ago, the choice available for investors was very limited.

UK equities, British Government Securities (or gilts as they are commonly known) and cash were about the extent of the investing landscape. True, overseas shares were available – mainly through trusts as this was when the investment dollar premium existed which penalised those who wished to place their money abroad.

The evolution of choice Perhaps of most significance was that few private investors placed any part of their portfolios into corporate bonds. These were viewed as options only really suitable for the professional investor, such as pension funds and insurance companies.

It did start to change – slowly. Imperial Chemical Industries, then one of Britain’s largest companies, launched two bond issues in the mid-1960s.

Though not specifically aimed at private investors, they did attract a great deal of attention from individuals seeking to enhance their income.

Life turned tricky for bond investors in the 1970s.

Rampant inflation and a major recession saw corporate failures and sky high fixed interest yields drive bond values ever lower. Not that it was much of a picnic in the equity stakes. The combination of the oil price quadrupling, the three day week and a secondary banking crisis during the 1972/74 period saw share values fall by 70% peak to trough in this country, making it the worst post World War II bear market. The recovery for shares was relatively swift, but bond investors had to wait quite a while for their fortunes to improve.

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Where are we now?

Fast forward to the present day and bonds are now an integral part of many investors’ portfolios.

Moreover, the nature of bond investment has changed out of all recognition. There was no such thing as a fund enabling a private investor to spread his or her assets between a variety of bonds when I started out. Today the Investment Association has several sub-sectors within the bond fund universe which provide an opportunity to select a particular style of investing, a geographical bias or a risk based approach to portfolio construction.

There was no such thing as a fund enabling a private investor to spread his or her assets between a variety of bonds when I started out

The simple measure of investment returns, epitomised in the Barclays Equity/Gilt study which looks at investment trends and results back to the end of the nineteenth century, has suggested that equities always outperform bonds over the longer term – until recently, that is. The financial crisis of a decade or so ago, which ushered in a sustained period of very low interest rates coupled with muted inflationary pressures, allowed bond investors to prosper. The growth and development of bond fund managers created an opportunity for all to benefit from what is, after all, the dominant securities’ market globally.

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BRIAN TORA TORA BRIAN December/Januar y 2019

Looking ahead – should we be worried?

But things are changing. In the US interest rates are already rising. Money is becoming tighter around the world. Inflation, proclaimed dead by leading economist Roger Bootle in the wake of the concerted action by central banks to stave off the worse consequences of the financial collapse, may yet rear its ugly head. Against such a background, can bonds still be viewed as the core asset class they have undoubtedly become?

Much attention is being focussed on America right now. A buoyant US economy, rising wages and asset price inflation has led to the Federal Reserve Bank raising interest rates steadily. So far the main casualties seem to have been emerging markets, but with US Treasury yields forging higher, there are growing concerns that interest rates may have further to rise. And a rise in the cost of money means higher yields on fixed interest securities, which in turn pushes capital values lower.

So the outlook for bond funds looks, at the very least, to be uncertain. But it is too soon to write them off as an asset class. While central banks reining in their quantitative easing programmes suggest that we could return to a more normal interest rate structure, there are sufficient uncertainties around the world to realise that maintaining economic growth could take precedence over monetary tightening, thus taking the pressure off bond yields.

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Also, interest rates vary greatly from country to country and from one class of bond to another, while the options open to bond fund managers are vastly greater than used to be the case. Index-linked bonds are now part of the mix and derivatives allow hedging techniques to be put in place where the terms of a fund permit it. Managers can also vary duration within their portfolios to help protect themselves against interest rate trends.

The outlook for bond funds looks, at the ver y least, to be uncertain. But it is too soon to write them off as an asset class

Today we have large fund management organisations specialising in bonds, while most fund management groups will include a fixed interest element in their mix of products. And bonds remain a safety play for when a risk-off strategy looks prudent. The important thing is to realise that bond funds can vary greatly in terms of investment approach and likely outcomes. Careful research is just as important here as with equity funds.

Brian Tora is a consultant to investment managers, JM Finn.

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SU RE VE NTU RES December/Januar y 2019

Nothing ventured, nothing gained When it comes to investment, big is not always beautiful. Sue Whitbread talks to Barry Downes, Chief Investment Officer at Sure Ventures and finds a nimble specialist investor ideally placed to capitalise on some of the most exciting growth prospects available today

SW: Barry, can we start by looking at what exactly is Sure Ventures? It would be helpful to understand the background to it and the history of the investment trust.

BD: Sure Ventures is a fund that invests in software companies. In particular, we focus on three key areas.

These are augmented reality (AR) and virtual reality (VR), the internet of things (IoT) and emerging areas of fintech.

The trust was listed on the London Stock Exchange in January 2018. This is part of a larger strategy, with the trust being a feeder fund to a private venture capital fund called Suir Valley Ventures.

Sure Ventures provides access to this exciting sector for public market investors – in particular for IFAs and wealth managers. That’s exactly why we listed it. We have this fantastic venture capital strategy but normally it is only available to governments and institutions that invest privately. That needed to change.

SW: What’s your underlying investment approach/process to stock identification and selection?

BD: Sure Ventures’ investment strategy and offering provides easy investor access to a broad portfolio of vetted, high growth companies. I think it’s important for advisers to understand our high level strategy for investing. We invest at an early stage of a company’s development. We typically aim to be their first institutional investor, a stage that is often referred to as “seed” or “series A” venture capital investment.

Typically, we only invest in a business when we can see that there is a team in place which has brought their product into the market with some initial market validation. This way we’re not taking any product risk or market validation risk. We’re coming in at a later stage and taking the execution risk – scaling up the company, which we do through a number of rounds.

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Our typical investment size is £500,000 to £1m – with a typical round size up to £3m as we will work with coinvestors in the round. Over the first 24 months we’re looking to take the company from that initial market validation to ensure that it builds a very repeatable sales proposition with good early revenues. Then we will follow on with other investors with additional capital after the 24-month period - subject to things going well of course. Our aim is to help to scale the company to become a large company. The benefit

Typically we invest in just 1 out of 120 businesses that we meet

of this strategy is that we can get in at very attractive valuations – of between £2m and £6m on average.

As these companies progress, we know that software companies can become very large. They can either exit through a trade sale or do an IPO – we expect substantial returns from our individual companies and are targeting an internal rate of return (IRR) of 30% across the portfolio.

For the past two years our broad strategy has led us to make nine investments, with two more likely to be announced very shortly. Primarily our investments to date have been in the VR/AR/IoT sectors.

Typically we invest in just 1 out of 120 businesses that we meet. We have a very proactive origination programme primarily across the UK and Ireland.

But also, as we’re a specialist investor we get quality referrals from other sources and high quality inbound approaches too.

So what are we looking for in a business? For us to invest in a company we start with the end in mind.

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SU RE VE NTU RES December/Januar y 2019

We won’t invest unless we believe it’s going to have an incredible impact on industry and could end up being a category leader valued up to £1bn. This impact is over the medium term so we look ahead to around 5 years in the future. At the point at which we invest we have to see that this potential in the business exists.

We’re also looking to see if it has a team that can do

For us to invest in a company we start with the end in mind.

We won’t invest unless we believe it ’s going to have an incredible impact on industr y and could end up being a categor y leader valued up to £1bn

it and it has a product which is ground-breaking in some way as well as whether it is properly protected by patents. Also, we want to know the company has a team which can get this out to the market and that they have already proven this. For example, can we talk to their customers?

SW: It’s clear that effective due diligence is crucial to successful investing in such sectors.

What does that process look like at Sure?

BD: Our approach is orientated around doing increasing levels of diligence as we go through the process. When we first meet a company we do a very quick screen to check that the business is operating in our business area and whether it has attractive opportunities. We review ten different factors at this stage. If the business does not pass this stage, we are out, and confirm this to the business at this point. If it does pass, we proceed to the next stage where we do a deeper dive. Here we consider 82 different factors.

Again if the company fails on any of those we cease our interest. However, if it passes then we proceed to the stage where we consider around 250 factors in the due diligence while we are putting together the investment documents for the company. It’s a progressive approach which works very well.

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The reason we do it this way is that we want to be respectful to the companies we pass on as well as the companies we ultimately invest in. We are proud of our reputation and determined to maintain it.

This is a timely business and so we only ask for very detailed information as we get further in. It’s a far more cost effective approach which maximises the use of everyone’s time. It’s very comprehensive due diligence but it is staged to maximise the results from the overall process.

Another important point for advisers to understand is that we are active investors in these businesses – we help them to grow. As well as providing capital investment, we go on the Board of the business bringing our knowledge and our network to support their growth. This pays dividends in helping the companies towards IPO or helping them to get to private rounds where they grow too.

SW: What makes the trust different to other investments in this sector?

BD: It’s important to clarify that Sure Ventures is an investment trust which invests in this sector and not a Venture Capital Trust by definition. VCTs carry tax breaks for a five-year hold period and have certain constraints too. The investment trust structure is also tax efficient but in a different way. It gives us more flexibility. With a VCT or EIS fund all the companies have to be EIS qualifying. For us, the investment strategy allows us to consider investing outside the UK should we so wish. Our primary focus will continue to be on looking at companies in the UK and Ireland. We have people based in London, Cambridge and Dublin.

The fund has the capability to co-invest too – to take a larger percentage of a particular deal – as long as it’s in our sector.

We are engaged in a rolling placement programme for the fund with new capital raising every quarter.

Our goal is to grow the fund incrementally up to the authorised capital limit of £50m. We will be accelerating fund raising as we accelerate deal flow over the next few years. We’ve just announced three new deals which are exciting and there are plenty more in store.

SW: How can advisers use the trust within client portfolios?

BD: Sure Ventures can form part of a portfolio which is looking for attractive capital growth prospects. Of

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SU RE VE NTU RES December/Januar y 2019

course, as we’re looking at higher return strategies then we have to accept that there is the potential for higher underlying risk. It’s the part of a client’s portfolio that has the potential to really boost the return of their overall portfolio.

We appreciate that advisers will be seeking to maximise the overall returns for their clients’ portfolios whilst minimising risk. Bearing this in mind, why might they consider Sure Ventures?

Risk takes many forms. By building a properly diversified portfolio, clients can benefit from exposure to many different sectors, asset classes and geographical regions that the complementary nature of holding so many diverse underlying investment will work to reduce certain elements of risk. The stage and point at which we invest are hard for advisers to duplicate elsewhere in their clients’ portfolios. This brings the potential for growth to investors, where many of the companies we invest in won’t come to the public market. Most should result in a trade sale four or five years after we invest in them. It’s an area that advisers and their clients rarely get access to, but they can do through our fund. The AR/VR areas are expected to grow by some 100% CAGR over the next five years. IoT and fintech are also rapidly growing markets. The companies we invest in will all benefit from this positive tailwind of growth in their markets.

We appreciate that advisers will be seeking to maximise the overall returns for their clients’ portfolios whilst minimising risk

SW: How do you keep advisers and investors up to date with progress and opportunities?

BD: We are really keen to build relationships with advisers, paraplanners and wealth managers to help them to understand the opportunities we can open up for their clients’ investments. It’s a natural fit for us. We have built a very active investor relations team at Shard Capital and a team that looks after investors in Sure Ventures. As part of this we produce quarterly updates to provide the latest news on the sectors and portfolios and updates but also invite investors – and advisers - to visit our City office in London to see demonstrations of the technology in action. It’s really powerful stuff. When you see it for yourself, it really is very compelling.

SW: Where are you seeing the biggest areas of opportunities for growth?

BD: If we look at the AR/VR sector, there are very different opportunities emerging in each. Within AR,

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we are finding two types of opportunity. The first is AR through mobile phone which tends to be around games, e-commerce and advertising. AR advertising is going to be a very large area on your phone in future.

The second type of AR opportunity is in AR Smart Glass technology - where you can see things through your glasses. That ultimately will impact in the consumer space in a few years’ time however there are currently big opportunities in industrial applications.

There was an interesting report recently from Cap Gemini which shows it can deliver big productivity gains in different sectors – for example in aerospace.

The classic example here is that technicians are wearing these Smart glasses when maintaining a piece of equipment so they can see the steps to perform and key information about the engine that is needed. It has very wide application in health and safety too. Another example that shows a very concrete application of AR Technology is Porsche dealerships using it to help them to service cars more efficiently.

The big area of opportunity in AR is in the mobile side, and it relates to advertising on most major platforms for eg. websites/apps. If you consider an advert for trainers for example, these new adverts using the technology allow you to push a button so you can see the trainer in augmented reality. What that means is you can actually to see what it looks like on your foot! It’s very powerful. Readers may have seen some examples which IKEA did using AR for furniture in this way, allowing the viewer to see it from all angles. Another one was Coca Cola, who used it to sell cabinets for the drinks to retailers. Overall there are so many opportunities but I think it’s in advertising that its biggest impact will be seen.

In the Internet of Things space, what we find is that sensors and software are being brought together to create productivity benefits in a variety of sectors – agriculture, industry 4.0, smart homes eg Nest.

IoT is an umbrella term but it is important to see which sectors are within it. We’re seeing big opportunities as it rolls out in a variety of industries.

You can see examples on Amazon.com of a fully automated robot warehouse. This is more a proof of concept – for Amazon, it will take some time to roll that out. The vast majority of warehouses are run in the traditional way so a company we’re investing in which builds software and sensors will mean that we are one step on the road to fully autonomous warehouse. It may be the size of 10 football fields.

They use sensors and software to automate the whole white goods tracking process and tracking within the warehouse, giving substantial productivity gains overall.

Up until now, IoT has been just generic platform development but now we’re starting to see real business applications giving companies real business traction and growth. This is an area we are very focused on and excited about.

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SU RE VE NTU RES December/Januar y 2019

In the fintech sector, we’re starting to focus on the use of artificial intelligence (AI) on finance and finance activities. We’ve have a number of such deals in our pipeline. It’s an area which can have a very big impact on financial services and we hope to announce some of those deals in early 2019.

the company and are showing an 8 times unrealised gain on our original holding. This just shows that if you can get in early as an investor in the right business helping to make it a success, even at the next round you can still make substantial amounts of money.

A common theme through all of our areas is the impact of artificial intelligence. For example, in the AR/VR space we announced a deal last month with Artomatix. This automates a lot of the content creation processes used in animated movies, video games etc. Effectively you’re removing some of the drudgery involved in the process thereby reducing the costs of production by up to 85%. This is a classic example as it’s not about technology replacing people and jobs, because this is a sector where there are not enough people available and AI is needed to allow the sector to grow. These are great companies and it’s a real joy to do this kind of work.

SW: What are the future plans for the trust?

A common theme through all of our areas is the impact of artificial intelligence

SW: How profitable are these businesses as investments?

BD: Of the four companies we invested in last year, two have already gone to IPO showing us substantial gains. One has a term sheet on the table for the next round – which will produce strong gains. The fourth is expected to do its next round in Q1 next year. These businesses have done very well for us and for our underlying investors.

BD: We have nine portfolio companies already announced with two more expected before Christmas.

We would expect this to total 20 companies by this time next year and then reach 30 by this time in 2020.

We’re investing in new companies over the next two years. By 2020 we will also have some company sales (exits) under our belts. The focus will be to maintain a portfolio of around 30 high growth companies, selling some and bringing some new ones in too.

These areas for investment all offer high growth potential over the next five years. We are seeing some trends already on AR and AI. Even though the sectors will be the same, I think you’ll see more and more AI in the AR/VR/IoT/fintech deals we are doing.

In terms of our capital raising plans for the fund, we will continue to raise capital quarterly to continue to invest in these deals. We’ll probably start to see the odd deal outside the UK /Ireland next year too but our primary focus will remain on the UK and Ireland where we continue to see excellent prospects for continued growth and expansion for our investors for many years to come.

To find out more visit https://www.sureventuresplc.com/

The first company we invested in was Immersive VR education. This went through IPO to list on AIM back in March. We maintained our shares in

About Barry Downes Barry Downes is CIO of Sure Ventures PLC, Managing Partner of Sure Valley Ventures and also Chairman of TSSG (previous CEO), a leading technology Research Institute, Incubator and Accelerator which has raised over €90 million to date. Previously, he was Founder of FeedHenry, which was acquired in 2014 for $82M by RedHat Inc. and also a Partner in SVG Global Inc. a leading Silicon Valley accelerator, VC and technology consulting firm.

Barry was a co-founder of Phoenix Technology Group a high-growth Fintech company and Software Development Manager at Infinium Inc. in Hyannis, Massachusetts. Barry holds an MBA from Smurfit Business School UCD, a BSc in Applied Computing from WIT and has executive education qualifications from Haas School of Business at the University of California Berkeley (in VC) and also Harvard Law School. Barry was recently named one of the top Irish software superstars by Silicon Republic and he won the Enterprise Ireland ICT Commercialisation Award in 2007 and the Irish Software Association (ISA) Outstanding Achievement Award in 2014.

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M E RIAN December/Januar y 2019

Swings and roundabouts Nick Wall, co-manager of the Merian Strategic Absolute Return Bond Fund, Merian Global Investors, assesses the outlook for fixed interest markets in 2019 Central banks in developed markets around the globe have changed tack and turned to tightening after a long period of easing and this will have implications for fixed income investors in 2019.

Major central bank balance sheets are now expected to fall 4% by the end of 2020. The era of easy money is near an end.

tighter monetary policy has remained elusive with financial conditions in the US actually easing.

US economic growth remains strong, interest rates are too accommodative and leverage has slowly started to build up again in the system. It’s for this reason that we think the market should be prepared for the prospect of the Fed fund rates potentially climbing above 3%.

What about China?

We expect the Fed will continue to raise interest rates well into 2019

This will be problematic for global liquidity, but also for dollar funding given the large role that the US Federal Reserve (Fed) plays in the normalisation of the global economy.

Three quarters of international credit is dollar denominated, and this year’s dollar strength highlighted fragilities.

A diverse range of developing economies is seeing their domestic financial cycles follow the US, regardless of the domestic economic conditions.

Some are struggling to pay back their dollardenominated debt as their currencies weaken.

We expect the Fed will continue to raise interest rates well into 2019. For the past two years, US policymakers have sought to stop the world’s largest economy from overheating. Despite their action,

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Meanwhile, China’s economy is slowing and its current account is moving into negative territory, reflecting a big change in global capital flows. For years, China’s current account surplus heavily contributed to funding US Treasuries and formed part of what former Fed chair Ben Bernanke called the ‘global savings glut’. This situation has reversed and we think China will soon become a capital importer.

US monetary policy is one driver of yields. The other is something called the term premium, or the extra return (or yield) that investors demand for holding a longer-term bond rather than a series of shortdated instruments. While the term premium has historically always been positive, it’s been in negative territory for the best part of two years, pushed lower by quantitative easing in Europe and Japan. In 2019, we think it should start to normalise once again.

Investors can expect more volatility as the term premium continues to normalise. In 2018, any upticks in the term premium precipitated a bout of volatility in other asset classes, most notably in the US equity market which sold off heavily in October.

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M E RIAN December/Januar y 2019

Reasons to be optimistic US-China relations may be thawing now that the Democrats have won control of the House of Representatives. President Trump may be unable to implement further fiscal stimulus. Brexit may be coming to a close, though the ending seems unpredictable for now. Meanwhile, the Italians are softening their rhetoric towards Brussels.

While it’s been a tough year for emerging markets, there were idiosyncratic stories that began to offer significant value for the first time since mid-2017. We saw Argentina as an especially attractive proposition given the under-pricing of its reform story.

We see opportunity in US Treasuries, especially at the front-end of the curve, while the European periphery and local emerging markets look attractive as central banks seek to tighten policy as gradually as possible. We would avoid UK, core European and Japanese duration risk given rich valuations. We are also conscious that as QE goes into reverse many of the ‘search for yield’ investment strategies may unwind, so prefer short positions in US credit where spreads look too tight.

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US-China relations may be thawing now that the Democrats have won control of the House of Representatives

About Nick Wall Nick joined the company as a fixed income portfolio manager in July 2016. Prior to joining the business, Nick worked as a fund manager in the global macro team at Invesco Asset Management, from 2007. He is a CFA charterholder and has an economics degree from the University of York.

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M ITON December/Januar y 2019

Fixed income, what is it good for?

Absolutely nothing?

David Jane, fund manager, Miton multi-asset fund range, reflects on what 2019 might have in store for bond markets

In recent months, bond yields have headed higher in most markets, leading to capital losses across the fixed income spectrum. As the Fed is seemingly committed to continued rate rises and the ECB to withdrawing from QE, we expect to see yields rise further in 2019.

Inverse correlation?

The equity market’s recent setback hasn’t seen a material fall in bond yields. If anything, the opposite has occurred. Bonds’ promise of inverse correlation isn’t bearing fruit.

The equity market has been fretting about an economic slowdown, but this hasn’t fed through into corporate bond credit spreads, implying the bond market is more sanguine about the economic outlook than equities. This leads to a quite unusual scenario ahead of 2019, shifting away from the belief that credit spreads act as a lead indicator.

Commentators have highlighted that corporate debt is running at very high levels, partly due to ultralow interest rates. It’s however set to remain highly affordable. Even with the expected interest rate rises 2019 will bring, on most realistic scenarios interest costs will likely still be very manageable for the average company.

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However, this average hides the fact that there are plenty of zombie companies already struggling to service their interest bill, despite a benign economy and favourable investment market. As interest rates

The historic purpose of bonds, a low risk income generating diversifier which performed well when equities were weak, no longer holds true

rise, or if the economy takes a turn for the worse, investors will be less willing to lend to companies without the means to repay.

The historic purpose of bonds, a low risk income generating diversifier which performed well when equities were weak, no longer holds true. Most scenarios that are negative for equities will also be negative for bonds, tearing down the belief in the negative correlation of government bond yields to equities.

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M ITON December/Januar y 2019

There’s got to be a better way?

The market environment going into 2019 will force investors to look more widely for diversification and risk-off type assets. From a multi asset investing perspective, options include lowly indebted infrastructure equities, particularly where they’re less economically sensitive. These assets can often grow revenues close to nominal GDP, giving some protection against rising interest rates, particularly if their debt is long dated. Examples we believe are attractive include holdings in airports, railroads, pipelines and telecommunication networks. Clearly, each comes with a higher degree of equity beta than corporate bonds and has its own amount of sector specific risk, but as lower risk assets than mainstream equities, they can provide some buffer to equity volatility.

Diversification will pose new financial challenges in 2019. The new investment environment means the simplistic multi asset approach of combining long dated bonds with equity is outdated. A more nuanced approach is required. It’s important to consider the risks that need to be diversified away, and recognise that equity beta is much more unavoidable than it has been for some time.

The market environment going into 2019 will force investors to look more widely for diversification and risk-off type assets

Real estate investment trust (REITS) are another way we’re tackling diversification. Despite the fact that property is valued closely off interest rates and most REITS have significant amounts of debt, rising inflation is a big driver of rents. Exposure to gold is another risk-off inflation hedge.

About David Jane David Jane joined Miton Group plc in June 2014.

He founded Darwin Investment Management Ltd in September 2010 and prior to that he was Head of Equities Investments at M&G. David joined M&G in December 2000 as a Fund Manager in the global specialist equity team before becoming Head of Equities investments.

Prior to M&G, David was the Head of Global Financials Research at AXA Investment Management and before that he was at Newton Investment Management as Director of Global Financials Research. David graduated from Keele University with a B.A. Honours in Economics, Statistics and Operations Research.

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SAPPHIRE CAPITAL PARTNERS December/Januar y 2019

Do you hear what I hear?

With Christmas just around the corner, Boyd Carson, Sapphire Capital Partners, gives his insight into where he sees particular investment threats and opportunities in 2019 At Sapphire, we do two things: We assist entrepreneurs in making SEIS/EIS advance assurance applications to HMRC, and we manage investment funds. The two areas fit hand in glove. The advance assurance work, which also includes assistance with investor readiness, provides us with a never-ending pipeline of potential companies for our investment funds, but it also provides us with a unique insight as to which sectors entrepreneurs think will be the opportunities of the future. We work directly with these entrepreneurs, and we are aware of definite trends. As a result, there are three areas of growth that I see for 2019 and which I will outline below: The community-based business The first of these is the ongoing challenge to the attention-based business model (such as Facebook).

Users no longer want to give companies all their data so that those companies can run advertising against them. I see this happening all around me, with friends and family opting out of certain types of social media.

The community-based business model continues to be a definite growth area for 2019, as we continue to do much consulting work for start-ups in this area.

Robotics The second area is robotics. Automation and robotisation continue to drive significant productivity improvements across the global

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economy. Capable, self-operating machines are increasingly becoming available to help people reduce time spent completing tedious, repetitive tasks. The promise of robotisation within many

Robotics has been receiving much publicity in 2018, but I believe this sector will continue to mature, and there will be many great opportunities for investors to invest in robotic start-ups in 2019

areas of life suggests that robots may result in a new industrial revolution that potentially will spur on the global economy over future years. Consequently, robotics likely represents one of today's most exciting investment themes. Robotics has been receiving much publicity in 2018, but I believe this sector will continue to mature, and there will be many great opportunities for investors to invest in robotic startups in 2019. Indeed, from Sapphire's perspective, the fund we manage in conjunction with Britbots continues to be very popular, both concerning the number of startup companies applying and funds raised.

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SAPPHIRE CAPITAL PARTNERS December/Januar y 2019

A new approach The third growth area for 2019 is one that isn’t sector specific; rather it is companies who possess a purpose-driven philosophy. ESG (Environment, Social, Governance) is not a sector, but a set of factors measuring the sustainability and ethics of companies, with a goal of being each sector’s “Best In Class” a way to make an impact, as well as differentiate and attract investment. For example, companies involved in space exploration, or blockchain technology may rank higher in ESG and as such attract more investment than, for example, environmental technology companies or social enterprise.

Where are the threats?

Regarding threats we face in 2019 and the coming years, the retail sector appears exposed to significant challenges particularly concerning traditional “brick and mortar” trade. I know this first hand from the continuously increasing number of packages we receive to our house from orders made online.

Traditional local shops continue to struggle to compete with online retail. Consequently, any business model that involves retail that has no online presence, we typically will not look at for our investment funds.

The “B” word As for the topic on everyone’s mind known as Brexit, I can call it a danger for the associated uncertainty and confusion it is creating, but cannot comment further as I have no idea whether it will, in reality, turn out to be positive or negative for UK entrepreneurs and investors. Your guess is as good as mine on this one.

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About Boyd Carson Boyd runs Sapphire Capital Partners, the investment manager for multiple funds.

He is a Fellow of the Institute of Chartered Accountants and a former director of PwC in New York. The firm has won multiple industry accolades, including recently the EIS Association’s award for Best SEIS Fund Manager.

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GU N N E R & CO December/Januar y 2019

Business planning for 2019: Nailing your strategic plan As 2018 draws to a close, Louise Jeffreys, Managing Director of Gunner and Co. argues that now is the time to reflect on what has worked well in your business over the past twelve months – and also what hasn’t. Here she gives practical tips and ideas that you can use to be proactive, to think ahead and plan what you need to do for greater business success in 2019 and beyond.

As many readers who have followed my previous articles in IFA Magazine will know, I work with financial planners to help them to define not only their exit strategy but also to suggest appropriate third parties who they may wish to work with, to help them build an effective plan.

All of this involves a lot of strategic planning, and that, plus my experience of both running multimillion pound divisions in my former corporate life, and running Gunner & Co. day to day now, has given me lots of experience in strategy & planning.

Personally, I find that the day to day pressures of running my business and team often seem to take priority over assessing and defining the strategic direction of the business for the longer term.

Therefore, I like to use this time each year to set aside at least half a day to review the year that’s passed, and consider my direction for the year ahead. I call it my ‘Strategy One-Pager’, and I’m going to share it with you in the hope that you can find some practical ideas that you can take away and use as part of your own business planning activities.

What’s your business purpose?

Knowing your business purpose seems simple, but we all know how easy it is to get pulled in odd directions when it seems like there may be a commercial gain. Every year, as a starting point to my Strategy One-Pager, I review what I set out my business purpose to be, and if it has changed or should be changed for the year ahead. For example, have you strayed into employee benefits or auto-

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enrolment, and should that now be considered as part of your strategic direction?

Understanding your business purpose is as much about what you don’t or won’t do, as what you do

Understanding your business purpose is as much about what you don’t or won’t do, as what you do.

We all know the most successful business leaders are those who unyieldingly focus on delivering what they said they would. And we also know, and may be guilty of it ourselves, someone who has bags of business ideas but never quite manages to follow them through to a successful outcome.

Articulating, reviewing and checking back against your core business purpose is a sure sign of a focussed business owner or manager.

Where am I today?

A key element to defining and redefining a strategic plan, is really understanding where you are starting from. Once you know where you are starting and have an understanding of where you want to get to, the gap can be assessed.

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An activity which I find very useful is to carry out a quick SWOT analysis of my business. SWOT analysis,(by which I mean strengths, weaknesses, opportunities & threats), allows you to look at your internal operation in terms of your strengths and weaknesses, and your external and internal environment, in terms of opportunities and threats.

These are important so let’s break them down and examine them in a little detail: Strengths

A business author I follow called Marcus Buckingham wrote a book ‘Now Discover Your Strengths’. His research suggests that if we focus on improving our weaknesses we can become semi-good at something, whereas if we focus on developing strengths, we can become truly amazing. Identifying the strengths of your business and your staff allows you to plan how, in the year ahead, you will maximise them to best effect.

Weaknesses

Now that’s not to say that weaknesses can be ignored, especially when you are working in such a highly regulated environment as financial planning. Knowing what needs to be addressed and committing that detail to paper are the first steps to defining a plan to overcome those weaknesses.

Opportunities

With your business purpose and focussed direction firmly in mind, are there opportunities you could follow which will allow you to be more efficient and effective in what you do? It may be about changing your back office and client management systems, or maybe there are specific growth opportunities you could build into a plan for 2019, such as acquisition?

Identify them, and play to your strengths.

Threats

A SWOT analysis needn’t be an arduous task. Bullet points for each heading are a good starting point, and give you something to come back to as you set objectives and continue to review them throughout the year ahead

compliance/regulatory hurdles are coming up, as well as threats which you can identify as being very specific to your business which may arise.

All these are key to having a risk mitigation plan in place. Considering and planning for potential threats ensure that you can overcome these bumps in the road without significant disruption to your ‘business as usual’ operations.

A SWOT analysis needn’t be an arduous task. Bullet points for each heading are a good starting point, and give you something to come back to as you set objectives and continue to review them throughout the year ahead.

Furthermore, if you are at a point where you are overlaying exit planning or retirement into your strategy, a key piece of information you would need at this stage is your current business value.

This is an area where we can help. Gunner & Co. offer clients a valuation service which gives you an understanding of how attractive your business would be in its current form and in current market conditions, and the sort of valuation your business may achieve, along with clear guidance on what could be improved.

Looking out for potential dangers is essential for business success. Perhaps you may be looking at changes in the market for advice, what potential

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GU N N E R & CO December/Januar y 2019

Setting goals & key performance indicators (KPIs) So let’s get to the meaty bit of the plan. What are you going to achieve in 2019?

Typically, I would start with financial targets, and ideally do this in a detailed way – n ot simply a fixed % of year on year growth. The more specific you can be, the more you can measure against it as the year goes on and see if you are on track. An example would be to set a goal on the number of brand new clients you will take on in 2019, and what value of assets under advice/management you would hope that they bring to the firm (this number is clearly trickier). When you multiply that into fee revenue, you can then split it into achievable chunks, such as monthly or quarterly.

To win new business, we must typically maintain a certain level of activity to generate referrals, enquiries etc. Setting a monthly target for those tasks all contributes to delivering your overall financial objectives.

Coming back to retirement planning, two key factors which have an effect on value are: your average invested money per client, and the depth of intergenerational planning in place. In the case of the former, the more an individual client has invested, the more profitable that client is and in turn the more attractive your business will be to a prspective buyer. And with your personal exit in mind, the deeper your firm’s relationship with the wider family, the ‘stickier’ those family groups will be for a new business.

These could be two factors to consider when you are goal setting. Gunner & Co.’s seminars cover all the factors that make your business attractive – you may want to add one to your diary!

You should also go back to your SWOT and identify a couple of goals from this analysis. For example, developing a team incentive plan (not necessarily financial – the American author Chester Elton writes very convincingly on the benefits of nonfinancial recognition) may build on that strength in your business. Perhaps you identified a growth opportunity by recruiting more support such as a paraplanner, or by acquiring another business?

Whatever it is, committing this to a goal for the year ahead is more likely to make it happen than leaving it in the back of your mind!

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Don’t forget the age-old structure for goals, that they should be SMART i.e. specific, measurable, achievable, realistic and time based. Test your goals against this rule. If you’re wondering about the difference between achievable and realistic, a trainer once described it as running a marathon – is it achievable for 90% of the population? Almost certainly… Is it realistic? Probably not..!

Breaking your goals down into bitesize (and deadlinedriven) chunks, and setting them alongside other business key performance indicators (KPIs) is something I am passionate about. Not simply because I love a spreadsheet, but primarily because when you

Breaking your goals down into bitesize (and deadlinedriven) chunks, and setting them alongside other business key performance indicators (KPIs) is something I am passionate about

measure performance with KPIs you can honestly say if you/the team/the business has done well and, most importantly, you can then celebrate that success.

Making it happen For some of us (women especially – no sexism meant!), making the plan isn’t such a challenging thing! It’s in delivering the plan, when we’re juggling everything else which is where things can come unstuck.

Now we all work differently, but I have a few ways to ensure that I am accountable to delivering what I say I will as outlined below: Get weekly ‘Q2’ time Dr. Stephen Covey talks about time management in his excellent ‘7 Habits’ books. Principally, he categorises our time use into four quadrants to help us to focus on and value the important tasks as opposed to the urgent ones:

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GU N N E R & CO December/Januar y 2019

• Q1: Important & Urgent – all the ‘business as usual” (BAU) things you must do to run a business and keep it on track • Q2: Important & Not Urgent: All the strategic planning, relationship building, long-term tasks •

Q3: Not Important but Urgent: these are things like emails and meetings we commit to which don’t have an importance to us running and developing our businesses

• Q4: Not Important and Not Urgent: trivial timewasting, which falls on your desk because no one else wants to do it!

Carving out ‘Q2’ time in my diary each week is how I make sure that I progress my strategic goals. Typically, I do this outside of the office, with my emails switched off. This gives me time to think about the future of my business and also to work on the actions surrounding my goals, which is so essential to making them happen.

A monthly business MOT This is where I produce a report of my KPIs, typically measured against my target for the year and ‘TTLY’ – this time last year. By looking at these numbers every month I can spot early on if I am off track and set out a recovery plan. I share this with my business partners and key members of my team along with any new actions I need to take. I’m not sure if they always read it, but knowing I’ve made the commitment to doing it and sending it ensures I complete it and also think about what the numbers are telling me

With 2018 drawing rapidly to a close, each of us has to find what works best for us as individuals.

However, we all need to have a sound process to work through to help us to make the effective plans which really do act as the building blocks of our future business success.

I hope that you have found some of the ideas and processes which I’ve highlighted here and which work well for me, to be useful for you too. You will have noticed I follow a number of business authors and learn regularly from their teachings. If you’re looking for some ideas for reading material for your Christmas wish list, here are some business books I have found particularly useful and would thoroughly recommend. Happy reading - and a very happy and successful business new year to you and your team too!

Recommended reading Gunner & Co.’s M&A updates: https:// wp.me/Pakm2B-Fp Mastering the Rockefeller Habits/Scaling Up, Verne Harnish The 7 Habits of Highly Effective Managers/People, Dr Stephen Covey A Carrot a Day/The Carrot Principle, Chester Elton Now Discover Your Strengths, Marcus Buckingham Built to Last, Jim Collins Key Performance Indicators: The 75 Measures Every Manager Needs To Know, Bernard Marr

A quarterly review of strategic goals, as of a board meeting This is where I present progress, challenges and action plans for the goals I have set to my business partners, giving me accountability beyond myself and useful feedback from objective supporters.

If you are adding retirement planning in to your goals, Gunner & Co. would be happy to add a quarterly/six monthly catch up for you. This will help you keep it front of mind and to keep you updated of any changes in the market (for example the qualifying criteria of Entrepreneur’s tax relief was updated this budget)

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LouiseJeffreys is Managing Director of Gunner & Co. With her extensive leadership experience and expertise in marketing, Louise knows, first-hand, how to position businesses for the best exit.

Louise.Jeffreys@gunnerandco.com

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RICHARD HARVEY December/Januar y 2019

The most wonderful time of the year?

As we gear up for the Christmas festivities, whilst Richard Harvey isn’t planning a spending frenzy himself, he worries about the consequences for others who might be tempted to splash the cash

Whether or not you agree with the words of Roy Wood and Wizard, and wish it "could be Christmas every day", I’m guessing that even as I write this in November, you won’t fail to have already had your fill of such seasonal ditties. For those readers who might need this explaining, it's one of those ear-worms your pub, supermarkets and local shops blast out at this time of year, along with Slade, Bing Crosby, Jona Lewie and every other recording artist who thought a Christmas song would do wonders for their bank balance).

Talking of bank balances, as if to prove that today's younger generation can live up to their growing reputation for abstemious and sensible behaviour, it's their elders who are raiding their savings with the same reckless enthusiasm they tackle the tin of Quality Street.

Think I’m gonna get myself happy Those words were one thing coming from George Michael. However, talking of Georges, the Pensions Policy Institute (PPI) has reported that since George Osborne unshackled pensions three years ago, more than half of those with a pension pot have taken the lot. In one go.

The Pensions Policy Institute (PPI) has reported that since George Osborne unshackled pensions three years ago, more than half of those with a pension pot have taken the lot. In one go

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The result, of course, is they faced a socking great tax bill. Sadly, many of those DIY investors who took that step failed to appreciate that this would happen (although, rather like health warnings on fag packets, surely there should have been some kind of red light, klaxon-blaring alarm before they drained the pot).

Maybe the government was being somewhat coy about tax penalties on total pension withdrawal. The PPI reckons that if that habit continues, tax revenues could increase by as much as £19.2 billion in the next decade.

If that was in the small print of Spreadsheet Phil's October Budget, I missed it.

Our house Meanwhile, the Equity Release Council reports that homeowners aged 55 or over borrowed more than £11 million a day in the three months to the end of September.

Just think how much that could benefit their offspring, maybe giving them a first step onto the housing ladder or paying off their credit card bills. Oh look - a porker has just flown past my window.

Key Retirement says almost a third of those who took equity release immediately went onto MakeTheNeighboursJealous.com and booked themselves a splashy holiday, while almost two thirds spent some of the money doing up their own home.

Only a minority used it to pay university fees or fund a house deposit - presumably the others have a heartwarming policy of "stand on your own two feet, kid".

Clients of professional advisers will hopefully have got their finances – and spending habits - a little better under control. However, there is a tendency for so many people to throw caution to the wind when it comes to spending their hard-earned cash at this time

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RICHARD HARVEY December/Januar y 2019

of year. It is always a concern and one which can have rather serious consequences over the longer term – but that’s a subject for another day.

Key Retirement says almost a third of those who took equity release immediately went onto MakeTheNeighboursJealous. com and booked themselves a splashy holiday, while almost two thirds spent some of the money doing up their own home

Waspi Way Finally, I note that at the time of writing, a date still hasn't been set for the High Court to consider a judicial review of the government's much-vilified decision to delay State pensions for women.

The review is being sought by the 700,000-member Backto60 movement, and will be led by Michael Mansfield, the luxuriantly-coiffed civil rights barrister.

One can only wish them well. Which is a sentiment I echo for all readers of IFA Magazine. May you have a peaceful Christmas (no talking about Brexit over the family lunch) and a prosperous 2019 to you, your families and your clients.

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CAREER OPPORTUNITIES Position: Pensions Specialist Paraplanner Location: LIVERPOOL Salary: £35,000 - £40,000 per annum The client: This is a leading national financial services firm which specialises in providing guidance and education for workplace savings and benefits. The business has a strong reputation and is expanding at an impressive rate, through their model of offering clients a top-quality service to allow them to make the best decisions to improve their financial well-being.

The Role: The firm seeks a technical professional who is looking to apply their knowledge within an IFA firm and add value to a business as one of the firm’s more senior paraplanners. There will be a mix of case types with a bias towards complex pension cases.

Duties and responsibilities: •

Ascertain that procedures followed by the company are compliant and follow the guidelines set out by the FCA and deliver suitability reports for IFAs

•

Provide recommendations for clients on investments and pensions based on your own research and to be able to support these recommendations with a coherent explanation

•

Work effectively autonomously or as part of a team

•

Respond efficiently and effectively to requests from company advisers and management

•

Assist in analytic work, including cash flow forecasting and investment analysis

•

Use of financial planning software tools

•

Develop productive working relationships with colleagues and clients

Skills: •

Previous experience providing technical support within an IFA practice environment

•

Level 4 Diploma Qualified and preferably a desire to work towards Chartered Status

•

AF3, AF7 or G60 would be advantageous

•

Good technical knowledge of pensions, investments and working experience of FCA rules

Position: Paraplanner Location: AYLESBURY Salary: £28,000 - £35,000 per annum The client: A fantastic, technical financial planning firm based in Aylesbury are looking to add to their technical team. They provide a range of tailored, client-focused services including financial planning and investment management to a variety of clientele.

The Opportunity: You will be responsible for preparing client suitability letters and financial report writing as well as providing a technical viewpoint on the work carried out within the firm. There is a supportive team and friendly office environment along with exam support for someone looking to progress further.

What’s needed to be considered?

•

Level 4 Diploma in Financial Planning or working towards this

•

Previous experience within a financial planning firm

•

High level of analytical capability and good communication skills

Position: Paraplanner Location: GLASGOW Salary: £28,000 - £35,000 per annum The client: An exciting opportunity for a paraplanner has opened at a highly regarded, innovative and well-established national financial planning firm that supports both corporate and personal clients. The team prides itself on the highest level of personal advice and professionalism that they provide each and every client. You will be working in a supportive company which embraces the latest technology to help their employees provide the highest level of service.

The firm has secured introducers with other national accountancy and law firms to continue to grow its impressive client base.

Duties and Responsibilities: •

Duties will include writing technical recommendation reports, conduct technical research and analysis, review client files upon completion of business and provide relevant documentation ahead of client meetings

•

You will benefit from an experienced management team and culture built on shared knowledge throughout the business and working together as a team

•

The company guarantees each employee a stable environment and the opportunity to develop their business skills

Skills: •

Level 4 Diploma qualified or working towards this is an advantage

•

Previous experience within an IFA practice and Paraplanning is essential

•

Excellent communication skills, both oral and written

•

FCA understanding of regulations and products, and their practical application

•

You will need to be able to work effectively autonomously or as part of a team

Position: Training and competence manager Location: FARNBOROUGH Salary: £50,000 - £55,000 per annum The client: This multi-award winning Financial Planning practice sspecialises in providing tailored financial advice to private clients across the UK as well as some of its largest businesses.

The Opportunity: Working as part of the Compliance Department which supports FCA regulatory requirements, risk management & regulatory compliance policies. The main purpose of this role is to control the systems and MI for the training & competence function, take charge of ad hoc projects, and provide proactive identification and monitoring of regulatory, control and process risks, thereby supporting management in ensuring the optimisation of suitable consumer outcomes.

This role also entails liaising with the head of compliance, T&C supervisors, other team leaders and managers to effect business change to address any high level root cause issues identified which may include joint field visits. The successful candidate will need to be innovative in order to design and implement effective company and compliance procedures.

What’s needed for me to be considered?

•

Level 4 Diploma Qualified or working towards

•

Preferably you will have knowledge of FCA objectives, principles and COBS rules, as well as DPA and financial crime requirements

Position: IFA Location: NOTTINGHAM, BIRMINGHAM and NORWICH Salary: £50,000 - £55,000 Per annum The client: This multi-award winning Financial Planning practice has offices nationwide. They specialise in providing tailored financial advice to private clients across the UK as well as businesses.

The Opportunity: An opportunity has arisen for an experienced adviser to join a growing business. You will receive a client bank with circa £21M FUM but will also be tasked with generating leads through a Private Bank with which the business has a professional relationship, working in these areas. In the first 3 years there is the opportunity to boost earnings having validated your salary twice over. A £4000 car allowance will be provided.

What’s needed for me to be considered?

•

Ideally Chartered or working towards

•

Ideally you will have banking and IFA experience

•

Proven experience of writing good levels of business

Position: Paraplanner Location: FARNHAM Salary: £35,000 - £50,000 Per annum The client: The opportunity for an experienced Paraplanner to join a Wealth Management Practice providing tailored advice, quality investment management, exemplary client service and a broad professional network to high net worth individuals. The firm is growing quickly and organically. It provides staff with exceptional training and study support, based from their brilliant Surrey-based offices.

The Opportunity: During a period of key expansion, our client is looking for a Paraplanner to support their successful Financial Planners of the business.

You will have the opportunity to work in a supportive team environment where career progression is strongly supported.

What’s needed to be considered?

In order to be considered for this unique opportunity, candidates need to have •

Level 4 Diploma qualified or working towards this

•

Previous experience within a fast-paced IFA Practice

•

High level of analytical capability and good communication skills

Position: Paraplanner Location: LONDON Salary: £25,000 - £45,000 Per annum The client: This is an exciting opportunity for an ambitious paraplanner to join a highly successful global financial planning brand. Focusing on providing a high quality financial planning and investment management service to its valued clients, this firm has built a sound reputation within the industry.

The Opportunity: During a period of growth, our client is looking for quality paraplanning support to the wealth planners on financial strategies, plans and products to clients. Reporting to the head of paraplanning and support, this is a pivotal role for the team and will involve developing and maintaining internal relationships to help maintain the flow of business in line with company strategy.

What’s needed to be considered?

•

Level 4 Diploma qualified (or working towards)

•

Previous experience within a fast-paced financial planning practice

•

High level of analytical capability and good communication skills

•

FCA understanding of regulations and products, and their practical application

•

Effective communication, both written and verbal

•

Have a professional, proactive and positive attitude

Position: Paraplanner Location: LONDON Salary: £35,000 - £50,000 Per annum The client: Our client is a growing yet very bespoke Financial planning firm based in North London. Headed up by a highly experienced Chartered Financial Planner.

They seek a career paraplanner with experience who can hit the ground running and get into the role in an efficient manner.

The Role: There is a great deal of flexibility within the role regarding progression, for those who can grow with the business as they move forward, developing into the role over time. You will report directly to a Chartered Financial Planner who has an expansive client bank. You will assist them throughout the entire client process, from initial meetings to the processing of business.

This role is unique in that the successful candidate will work alongside and shadow an experienced Chartered Financial Planner, reporting directly, giving an invaluable experience and industry knowledge. The client will assist in the progression of the candidate however is looking for someone with paraplanning experience who can take to the role quickly.

Responsibilities: •

Preparing necessary research for client reports and preparing those reports - these may be in relation to pensions, investments, trustee investment, IHT planning and other associated financial planning requirements.

•

Handling both client and adviser queries and undertaking any necessary research

•

Reviewing products available to meet client needs and making appropriate recommendations

•

Undertaking review of new funds available to meet the requirements of the asset allocations and make recommendations to the Directors.

•

Ensuring all paperwork is compliant with FCA guidelines

What’s needed for me to be considered?

The successful candidate will have the following skillset; •

You will have attained the Diploma in Financial Planning and be working towards Chartered Status, ideally with at least one advanced exam under your belt

•

Excellent IT and communication skills and the ability to deal with individuals at all levels within and outside the business

•

Paraplanning experience that can be transferred to the role

Position: Employed Adviser Location: SOUTHAMPTON Salary: £50,000 - £60,000 Per annum The client: The opportunity for a successful Independent Financial Adviser to work within an established and successful Financial Planning Practice dealing with all areas of advice for High Net Worth Clients.

The Opportunity: As an experienced adviser, you will have the opportunity to service existing clients of the practice and provide high quality financial advice in line with the firm’s regulations and expectations. This particular business prides itself on providing unrivalled levels of service and advice to their clients as well as career development opportunities for staff.

What’s needed for me to be considered?

In order to be considered for this unique opportunity, candidates need to be Level 4 Diploma qualified and have previous experience advising clients on pensions, investments and protection. You will also have the ability to prospect and contact potential clients in accordance with the firm’s business plan.

Position: IFA Administration Manager Location: LONDON Salary: £30,000 - £45,000 Per annum The client: Our client is a well-established financial planning firm with offices nationally. We are now looking for an administration manager with experience who can hit the ground running and get into the role in an efficient manner. This leading financial planning firm is experiencing a period of growth and as such, has an opportunity for the successful candidate to join a well-established firm in which they can grow and develop.

The role: This unique opportunity is an administrative role for an experienced person who can get into the role quickly. You will report directly to the Regional Administration Manager in the London office until you have grown and developed sufficiently to allow you to further take the reins.

This role is unique in that the successful candidate will assist the consultant in preparing reports, assist in research and performance data collection and work closely with a financial analyst whilst developing and progressing themselves further into the management aspect of the role.

Responsibilities: The responsibilities of this challenging role stretch beyond that of many administrative roles: •

Provide high quality administrative support to financial consultants and clients alike

•

Production and issuing of client advice, including liaison with product providers and undertaking research

•

Use of Exchange for research

•

Prepare and Issue client review documents.

•

Processing of new and existing business from outset through to conclusion

Position: Paraplanner Location: LOUGHBOROUGH Salary: £30,000 - £40,000 Per annum The client: This is a well-established Financial Services Practice which provides a highly personalised financial planning service. With specialist expertise on investment management, pensions and mortgage solutions, they pride themselves on developing long-term financial plans for clients whilst delivering exceptional customer service.

The Opportunity: During a period of growth, our client is looking for an experience paraplanner to provide analytical support to planners. You will have the opportunity to work in a supportive team environment where progression is strongly supported. Some of your duties will include: •

Delivering high quality suitability reports in a timely manner to clients while embracing the company’s core values

•

Obtaining relevant research relating to proposed advice

•

Regularly participating in team meetings, including highlighting issues and owning actions through to resolutions

•

Preparing asset allocation reports and files for meetings as well as recommendation reports

•

Dealing with platforms and product providers to obtain information about existing and potential investments

What’s needed to be considered?

•

Experience within an IFA Practice is essential

•

Currently hold Level 4 Diploma or close to achieving

•

Excellent communication skills, both written and verbally

Position: Paraplanner Location: STAMFORD Salary: £25,000 - £40,000 Per annum The client: A fantastic opportunity has arisen for an experienced Paraplanner to join a long establish and expanding investment company. The business offers clients strategic financial planning on mortgages, investments, protection, and pension transfers. This opportunity is wellsuited to a client focused individual looking for an opportunity to join a growing company where they are encouraged to grow, learn and continuously push the boundaries of their potential.

The Opportunity: You will have the chance to work in a supportive team with a range of responsibilities including: •

Assist the financial adviser in establishing new client relationships

•

Assess clients’ financial circumstances

•

Prepare financial statements to support the development of clients’ financial strategies

•

Carry out research and analyse products and services that are appropriate to each client’s financial circumstances

•

Adhere to FCA rules and guidance

•

Assist in analytic work, including cash flow forecasting and investment analysis

What’s needed for me to be considered?

•

Previous experience within a similar role

•

Level 4 diploma qualified or close to obtaining

•

Strong technical knowledge and excellent written and verbal communication

What’s next?

If you are interested in any of the above opportunities, please contact us directly. If suitable, one of our specialist consultants will be in contact with you to discuss the opportunity in detail prior to submitting your Curriculum Vitae to the client. During this discussion, we will aim to identify your specific skills and motivations and, where appropriate, can also recommend other relevant opportunities to you that match your requirements.

And finally…

If these specific vacancies are not exactly what you are looking for, please contact us to discuss other opportunities we may be recruiting for that aren’t necessarily advertised.

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