IFA Magazine - Issue 56 - March 2017

For today’s discerning financial and investment professional

EUROPE

WI LL TH E CE NTRE HOLD? March 2017

N EWS

REVI EWS

ISSU E 56

COM M E NT

ANALYSIS

CONTE NTS March 2017

R OPPORTUNITIES CONTRI BUTORS

4 Editor’s Welcome

6 Brian Tora

News

an Associate with investment managers J M Finn & Co.

10 Is this the end of the bond bull market?

Richard Harvey a distinguished independent PR and media consultant.

14 Better Business - what can you still learn?

Brett Davidson FP Advance

18 Adviser Spotlight - Sandy Robertson

22

Michael Wilson Editor-in-Chief editor ifamagazine.com

The division bell

Sue Whitbread

26

Commissioning Editor sue.whitbread ifamagazine.com

Alex Sullivan Publishing Director alex.sullivan ifamagazine.com

This is the modern world

28 Success through acquisition - a case study approach

32 A tangled Webb

34 Europe - can the centre hold?

38 The ideal specialist adviser opportunities

IFA Magazine is published by IFA Magazine Publications Ltd, The Tobacco Factory, Loft 3, Bristol BS3 1TF Tel: +44 (0) 1179 089686 © 2016. 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.

IFA Magazine is for professional advisers only. Full details and eligibility at: www.ifamagazine.com

WE LCOM E March 2017

A different road to Monte Carlo?

Cast aside your preconceptions, says Michael Wilson. Times are changing First, the good news. Fears that the 2015 pension freedoms would prompt a huge outflow of DC pension funds from the over-55s appear to have been overstated. As 2016 drew to a close, it appeared that Q4 drawdown rates were stabilising at around £1.56 billion – unchanged from the third quarter, and not so very far above the quarterly average of £1.35 billion for the whole seven quarters since the freedoms began.

No tidal wave of encashments there, then. And in a way that was fortunate, because London’s equity markets had a strong year, with the FTSE100 gaining 14.4% and the gilt yield trending convincingly downward. 2016 was a good year to have stayed invested.

The less good news, of course, is that 2017 is proving much harder to call. For reasons we don’t need to count, the pensions industry is expecting a sizeable rise in drawdowns this year. And Aegon is only the latest provider to be asking whether clients should still be expecting to draw down the good old 4% per annum of their starting capital (adjusted for inflation) that the good old Monte Carlo simulation has been indicating for so many years now. Or whether 3% adjusted might now be a better ‘safe’ rate for a 30 year retirement where the portfolio is split 60% equities and 40% bonds (plus a little cash).

Changing parameters, closer focus That shouldn’t shock us particularly. Only last year, Morningstar’s own study indicated that a 4% drawdown would provide only 78% probability of success over 30 years, against 90% for a 3% drawdown rate. And, as we reported in February’s IFA Magazine, Investec Structured Products has also queried the 4% rate – with a side recommendation that structured products may well present a viable way of handling risk and securing guaranteed incomes. But the Aegon paper (“What’s the new sustainable income rate in retirement?”) is possibly the most focused study yet.

Firstly, says Aegon, the 4% rule of thumb was calculated in 1994 by an American, William Bengen, with specific reference to the US investment market – which, as you might have noticed, has performed differently from some other countries since then.

Secondly, the traditional assumptions have been skewed by changing treatments of factors like IHT or the huge growth of housing equity, which offers the elderly a backstop that they didn’t used to have. And which might have impacted on their capacity for loss.

Open your mind. And the client’s, too Thirdly, longevity has grown faster in the UK than in the US, so that 30 year pot won’t last as well as it used to. (Especially if dementia risk cranks up the costs.) To which I’d add that you’d have to have a very special reason for wanting a 40% allocation in fixed interest during a year when so many indicators point toward significant capital risk for bonds. Phew.

But what I do like about the Aegon report is that it urges advisers to open up their minds to new thinking about how clients’ needs and aspirations shape up to their risk tolerance. And about how both advisers and their clients need to revisit their assumptions.

Aegon’s proposed ‘sustainable income’ rates? 3.23% over 30 years, 2.93% over 35 years. But those are just benchmarks. Read the full report for the maths.

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TENSE MARKETS? SHARPEN YOUR THINKING.

How do you release the strain on traditional investment strategies? How can low or negative interest rates be positive?

Do the returns we have become accustomed to simply belong to the past?

In these uncertain times, the intrinsic performers stand out.

Discover more at www.gam.com/newabnormal

The information is given for information purposes only and does not qualify as investment advice. Opinions and assessments contained in this document may change and reflect the point of view of GAM in the current economic environment. No liability shall be accepted for the accuracy and completeness of the information. In the United Kingdom, this material has been issued and approved by GAM London Limited, 20 King Street, London SW1Y 6QY, authorised and regulated by the Financial Conduct Authority.

N EWS March 2017

Mattioli Woods buys stake in Amati Wealth manager Mattioli Woods has acquired a 49% stake in Amati Global Investors.

An option to buy the remaining 51% of Amati for a two-year period begins in February 2019. Should the option not be exercised, the ultimate controlling party of Amati, Amati Global Partners, can buy back the initial 49%.

Amati will continue to be managed by Paul Jourdan, Douglas Lawson and David Stevenson, with Ian Mattioli, and two other senior directors of Mattioli Woods, joining the Board. No change in the dayto-day running of the funds and portfolios is planned.

In their statement, Amati said: “This is a strong endorsement of Amati’s capabilities and reputation as a specialist fund

PLAYING IT SAFE HAS NEVER BEEN SO EXCITING.

manager focused on UK quoted small and mid-sized companies.

“As well as the sound commercial and operational rationale for the partnership, during the course of negotiations it became clear that our businesses are highly complementary with similar values and business cultures.

Whilst Amati has always been a profitable and well financed business, the presence of Mattioli Woods as a partner gives us increased confidence that we can prosper as a specialist fund management house in a changing regulatory environment.

“Mattioli Woods clearly understands that Amati’s people, structure and investment process have been integral to the company’s success. Whilst both Amati and Mattioli Woods have ambitions for the growth of the company, this will continue to

be carefully managed to ensure that the management of the existing funds and portfolios is not compromised. At the same time, the support from Mattioli Woods in other areas of the business will provide Amati with valuable assistance in taking its investment products to a wider audience.”

Ian Mattioli said: “Amati is a great fit culturally and strategically. There are few specialist UK fund managers with such a long and stable heritage, utilising the combined experience of an investment team with over 50 years’ knowledge of UK smaller companies. The team’s performance has been recognised in a number of awards and ratings. I believe this investment will significantly enhance the Group’s fund management expertise.”

Top quartile since launch

LET’S TALK HOW. CUMULATIVE PERFORMANCE (%) 1 Year 3 Years 5 Years Fidelity Global Dividend Fund

23.2

55.2

106.7

MSCI AC World Index

33.0

53.4

90.6

IA Global Equity Income

28.1

41.0

76.2

This advertisement is for investment professionals only and should not be relied upon by private investors. The value of investments and the income from them can go down as well as up and clients may get back less than they invest. Performance: Morningstar as at 31.01.17. Basis: bid-bid, income reinvested in GBP. Launch date is 30.01.2012 Peer group is the IA Global Equity Income sector. The fund should only be considered as a long-term investment. As a result of the annual management charge for the income share class being taken from capital, the distributable income may be higher but the fund’s capital value may be eroded, which

N EWS March 2017

Building value in your business - Gunner & Co. 2017 seminar programme extended This popular seminar is strategically positioned to help advisers considering or planning their future exit strategy. Organised by Gunner’s managing director, Louise Jeffreys, who is very experienced in these matters, the seminar provides all the important details that advisers need to know about buying or selling a financial advisory business. It also provides the opportunity to network with a range of experts in this specialist field. The programme includes: • How the M&A landscape has changed over the last decade • Typical valuation methods • What drives value

• What is covered in due diligence

Thursday 18th May: Bristol (half day from 4pm)

• What the legal process looks like

Wednesday 24th May: London (full day)

• The tax position

Thursday 28 September: Birmingham (half day from 4pm )

• Wrapping up with a great case study bringing everything together Seminars have a maximum of 20 individuals per event and availability exists for the following dates and locations: You can book your place online via (www.gunnerandco.com/ index.php/events/).

Wednesday 8 November: London (full day)

Wednesday 1 March: London (full day) Thursday 2 March: Manchester (Half day from 4pm)

FIDELITY GLOBAL DIVIDEND FUND In uncertain times, it pays to take a prudent investment approach. That’s why this fund’s focus on high-quality stocks with strong balance sheets and predictable cash flows is so appealing.

Its global remit can provide significant diversification benefits to a portfolio, providing a broader income stream that helps to lower volatility.

Over the 5 years since launch, the fund has significantly outperformed both the index and sector average – and with lower volatility and drawdown. Now, that’s something to get excited about.

Go to fidelity.co.uk/gdf

will affect future performance. This fund invests in overseas markets and so the value of investments can be affected by changes in currency exchange rates. Investments should be made on the basis of the current prospectus, which is available along with the Key Investor Information Document and current and semi-annual reports, free of charge on request, by calling 0800 368 1732. Issued by Financial Administration Services Limited, authorised and regulated by the Financial Conduct Authority. Fidelity, Fidelity International, the Fidelity International logo and F symbol are trademarks of FIL Limited. UKM0217/18859/SSO/0817

N EWS March 2017

Sarwal becomes Chief Executive of FundsLibrary

Arun Sarwal (pictured) has become Chief Executive of fund data services and technology provider FundsLibrary, a subsidiary of Hargreaves Lansdown.

Sarwal moves from SS&C Technologies where he was Senior Vice President. Previous positions include CEO of DST Investment Management Solutions, COO at Scottish Widows Investment Partnership (SWIP) and SVP within ABN AMRO’s Private Clients & Asset Management business.

Last year the service responded to more than 74 million requests for data and managed the distribution of over 200,000 documents to platforms, wealth managers, life companies, as well as to IFAs and their clients.

Sarwal said: “FundsLibrary is one of the leading data businesses operating at the heart of a number of growth trends in the investment industry. The fund market has grown ten times over the last two decades.

There is a growing demand for increased granularity and transparency of investment data for fund selection, risk profiling, regulation and for investors, and industry disruption

8

from service providers and technology partners.

“I am looking forward to leading the business in its next stage of growth which will be based on working with clients to broaden our service propositions, further develop our digital analytics capabilities and expand into new markets.”

Chief Executive Officer of Hargreaves Lansdown Ian Gorham said: “Arun has extensive experience developing technology businesses and working in financial services, across a range of industry segments including commercial & investment banking, and asset and wealth management across the globe. To have someone of Arun’s expertise leading the FundsLibrary business demonstrates its importance and the depth of the opportunity that we believe exists in data management, analytics and regulatory services in the fund sector.”

News and views - don't forget the digital As readers will know, here at IFA Magazine we’re keen to support the needs of professional advisers digitally as well as in print.

However, we certainly don’t want to bombard you with more email updates with the same content you get landing in your inbox day after day. IFA Magazine provides three e-bulletins each week, aimed to help bring fresh ideas and opinions straight to you. On a Monday, our new “what the papers say” roundup has been proving very popular, with many readers contacting us to say they find it useful. It’s a short, sharp and factual take on which topics the weekend national financial press have covered. We know you won’t want to spend your weekend trawling through all the pages yourself, yet often clients will comment on what they’ve read in the press which might influence their thinking.

Also popular is the Wednesday lunchtime bulletin, which is designed to make you think, giving opinion, perspective and thought leadership on a range of relevant topics and themes.

Our Friday bulletin remains a roundup of other interesting snippets, interviews and expert opinion. Readers can sign up via our website http://www.ifamagazine.com/ page/about-us/subscribe/

Sarwal, who is the author of the International Handbook of Financial Instruments & Transactions, is a Chartered Accountant, Corporate Treasurer and Chartered Marketer with an MBA from the Cranfield School of Management.

I FAmagazine.com

Make It Your Business

The tax efficient investment market has changed significantly in recent years.

There has never been a better time to get involved, as high value clients are gaining interest in this sector and it’s exactly where you can add tangible value.

Complex structures and investments with higher risk profiles mean that clients would benefit from your advice. Without it, they may invest anyway and could make ill-informed decisions, whilst dis-intermediating you from the process and reducing your revenue potential.

Whether you’re already advising on SEIS, EIS, BPR or VCT products, or perhaps considering them for your clients’ portfolios then contact us at GrowthInvest. We’ll show you how you can consolidate historic investments onto our platform and build a diversified portfolio from a wide range of managed fund or single company investments. Through our intuitive online platform you’ll be able to offer your clients exclusive access to real portfolio growth, secure in the knowledge that these government-backed schemes offer unique tax efficiencies.

Visit us to learn about the products, the pitfalls and how best to advise on this dynamic and evolving sector.

So make it your business, before someone else makes it theirs...

Find out more at growthinvest.com

BRIAN TORA March 2017

Is this the end of the bond bull market?

With inflation picking up, Brian Tora looks behind the scenes at what this might mean for fixed interest investment

Equity markets were given a somewhat surprising boost by the election of Donald J. Trump as the 45th President of the United States last November.

As with the Brexit referendum, shares initially found the unexpected result troublesome, but they soon revived and markets on both sides of the Atlantic hit new high territory at around the time the new President was inaugurated in January. It seems as though the promise to provide a businessfriendly environment and cut taxes reverberated.

of office, signing papers that could produce results which are difficult to foresee and in which in some cases provoked mass revolt by millions of people across the world. For our case here, perhaps it is better to look elsewhere, rather than try to second guess what the outcomes generated by this most unpredictable of leaders will produce.

Whether this confidence in his ability to rekindle growth and “make America great again” is justified, only time will tell.

He had all the hallmarks of an “Action Man” in his early days

10

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BRIAN TORA March 2017

The impact of inflation And where better to look than the bond markets, which are more valuable globally than equities. Unfortunately, the outlook here looks just as obscure as elsewhere, but whoever said the business of investment was easy. Both the likely drivers of bond markets look uncertain at present – issuance and inflation.

Of these, inflation is giving the strongest signal – and it is hardly an encouraging one for bond investors.

Back in the exuberant 1990s, the economist Roger Bootle wrote a book entitled the death of inflation. Core to his arguments was the growth of globalisation, with emerging economies keeping a downward pressure of costs as aspirant, cheap labour ensured those countries with the ability to industrialise maintained a competitive edge.

It is, after all, the basis on which China grew to become the world’s second largest economy.

But some are now predicting the death of globalisation as the world’s biggest economy looks increasingly inwards.

The rise in the cost of living here at home, as measured by the Consumer Price Index (CPI), rose to 1.6% in the last published figures – which was more than had been anticipated. While this is still below the government’s target figure of 2%, there is likely to be more upward pressure on inflation as the lower pound pushes up the cost of imported goods and services. The most likely consequence of rising inflation is an abandonment of the Bank of England’s loose monetary policy and a reversal of the strategy of low interest rates which our Central Bank has employed since the financial crisis.

A global problem?

This is already in play in the US, where the pressure on inflation is even greater. CPI there topped 2% recently and the Fed is sounding increasingly hawkish.

With the likelihood that the new administration will need to borrow more heavily – at least in the short term – to deliver on promises, is it any wonder that US Treasury yields have ballooned from 1.5% to 2.5% in less than half a year. Issuance could well feature in driving up bond yields, especially if trade relations with some past buyers of US government debt, like China, become strained.

Nor is inflation likely to remain a problem for the Anglo-Saxon economies. Recent CPI figures for a whole raft of countries suggest inflation is on the up. In Germany it is a tad higher than

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here, though the Eurozone as a whole remains muted. And actually a rise in the cost of living for the single currency region of just over 1% does look high when you think it dipped below zero not so very long ago.

Impact on bonds So, what implications does this have for bond markets and, more importantly, bond funds? Rushing for the exit may not prove the best strategy for advisers to take at present, given that bonds will be viewed as a safe haven if the economic going gets tough. But rising inflation will inevitably force Central Banks to raise interest rates, which will have a knock-on effect in bond markets. To some extent the anticipation of such a move has already been reflected in the rise in bond yields. The question is, have they further to go?

With so many imponderables, it looks like markets will be kept guessing this year.

Never say never in the investment game, but it is hard to imagine a return to those years when double digit yields were commonplace. Back in the mid 1970s, we were in hock to the International Monetary Fund, inflation had peaked at around 25% and government bond yields were heading towards 20%.

Could it happen again? Unlikely, but inflation of even 3% could well impinge on bond pricing.

This market has long been core to many investors seeking income. Watching the likely influences on it closely will do investors little harm.

11

Invesco Perpetual Global Targeted Income Fund

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We don’t just invest money for our clients. We invest the hours, months and years of hard work it has taken to earn it. That’s why we’ve launched a new multi asset income fund that aims to preserve your clients’ investment capital over a rolling three-year period, whatever the market conditions. And provide a sustainable gross income of 3.5% each calendar year above UK 3-month LIBOR, before corporation tax. Not a bad return for a lifetime’s work.

For more information, visit invescoperpetual.co.uk/gti

This ad is for Professional Clients only and is not for consumer use. We cannot guarantee that the fund will achieve its income or capital preservation goals; your clients could get back more or less than the target income and they may not get back the amount they invest. The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested. As one of the key objectives of the fund is to provide income, the ongoing charge is taken from capital rather than income.

This can erode capital and reduce the potential for capital growth. The fund makes significant use of financial derivatives (complex instruments) which will result in the fund being leveraged and may result in large fluctuations in the value of the fund. Leverage on certain types of transactions including derivatives may impair the fund’s liquidity, cause it to liquidate positions at unfavourable times or otherwise cause the fund not to achieve its intended objective. Leverage occurs when the economic exposure created by the use of derivatives is greater than the amount invested resulting in the fund being exposed to a greater loss than the initial investment. The fund may be exposed to counterparty risk should an entity with which the fund does business become

Tom Hayles Furniture maker for 27 years

insolvent resulting in financial loss. This counterparty risk is reduced by the Manager, through the use of collateral management. The securities that the fund invests in may not always make interest and other payments nor is the solvency of the issuers guaranteed. Market conditions, such as a decrease in market liquidity for the securities in which the fund invests, may mean that the fund may not be able to sell those securities at their true value. These risks increase where the fund invests in high yield or lower credit quality bonds and where we use derivatives. For the most up to date information on the fund, please refer to the relevant fund and share class-specific Key Investor Information Documents, the Supplementary Information Document, the Annual or Interim Short Reports1 and the Prospectus, which are available using the contact details shown. 1As the Invesco Perpetual Global Targeted Income Fund launched on 30 November 2016, the first reports will be issued on or before the following dates: Interim: 30 June 2017, Annual: 31 December 2017. Invesco Perpetual is a business name of Invesco Fund Managers Limited. Authorised and regulated by the Financial Conduct Authority.

IFA GTI CH 1a

BETTE R BUSI N ESS March 2017

Better business - what can you still learn?

Staying within your comfort zone is all well and good, but it is one of the enemies of progress, suggests Brett Davidson of FP Advance, as he argues that being the best you can be means reading, exploring and learning new tricks

There is one thing I’ve noticed about the best financial planners; it is that they’re still learning.

In fact, this is something which is true of the ‘best’ in any field of endeavour.

I’m a big boxing fan. Recently I watched a fight between two of the most highly regarded boxers on the planet, the USA’s Andre Ward and Russia’s Sergey Kovalev. Don’t worry if you haven’t heard of them, they’re not quite crossover stars in the mainstream media. However, they are both very skilled.

As is so often the case in boxing, the final result was a bit controversial and Kovalev, who held the World titles, lost. Cue huge outcry from the boxing media and a portion of fans. Sergey himself was also none too happy as you can imagine.

Sergey Kovalev’s friend, a former world champion and fellow Russian, Kostya Tszyu had this to say: “He needs to discover what went wrong in himself, and not look for errors in the judges’ scores.”

That’s a bit harsh don’t you think? With friends like Kostya, who needs enemies.

However, Kostya himself was a great champion and to me this is clearly the champion’s mindset in action; “What could I do better?”.

If you’re a football fan, or a rugby fan, or a fan of the arts, you’ll know who the ‘best’ people are. It’s worth paying attention to that winning mindset.

They’ve all got it.

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BETTE R BUSI N ESS March 2017

Here are a few ideas:

So what are the lessons for advisers and business owners who want to be great at what they do?

The big take away for me is that champions are always learning

Please don’t write them off as super talents who got there by winning the genetic lottery. Anyone who succeeds at the highest level has been dedicating themselves to their craft for a very long time. In the case of Ward and Kovalev, since they were about eight years old. They’re both now in their thirties.

1. Deliberately challenge your own thinking There are some steps you can take to proactively stretch your thinking and help you dream bigger: • Adopt a ‘plus, minus, equals’ mentoring strategy a mentor who knows much more than you, a peer who is on a similar level to yourself, and someone you yourself mentor • Attend US conferences - all the best thinking in financial planning is happening in the US • Read widely – both inside and outside of our profession

So what are the lessons for advisers and business owners who want to be great at what they do?

The big take away for me is that champions are always learning.

2. Get a life coach Your business growth will never outstrip your personal growth. Therefore, it is impossible to get where you want to go without working on yourself.

What can you still learn? Clearly the answer to this question depends on your stage of development within the profession. If you’re pretty new to it, then getting a few more technical exams and qualifications under your belt might be it.

Yes, it’s uncomfortable. However, it is also hugely rewarding. The good news is you will reap rewards across all areas of your life; in your relationships, in your business, with your children, and in your community.

However, if you’ve been around a while (and many of you reading this have been), how do you identify areas that could be developed and improved?

The best way to do this proactively, and with accountability, is to get a reputable life coach. Doing so accelerates the learning curve and creates the mindset and behavioural change.

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BETTE R BUSI N ESS March 2017

In every business I’ve ever worked with, the handbrake on success is the owner

As an example here, in October and November of 2015 I went to Switzerland to do a ski instructor course. I went for fun because I thought it might improve my skiing (which it did). I’ll fess up and say I didn’t go there deliberately to kick start my personal learning, but that’s exactly what it did.

Be the driver of your own personal development.

Don’t skimp in this area.

Why? Because it meant that I was waaay out of my comfort zone. I was forty eight years old and surrounded by a bunch of ‘twenty-somethings’ who’d been skiing since they were four years old. I was one of the worst skiers in the group, and had to work really hard every single day.

3. Stay curious As one gets older it’s easy to lose that sense of curiosity you had earlier in your life. You start to rest on your laurels. This is the death knell for performance, and can also be a key contributor to feeling less enthused about your life and your business.

However, when I returned to normal life I had an amazing experience. My passion for growth and learning had been rekindled. To be honest, for a few years prior to doing that course I’d felt a bit flat. To the outside world everything was ticking over nicely, but I knew deep down inside that I was a bit stuck and couldn’t quite put my finger on why.

The brightest people on the planet are still researching and asking questions. The more they know, the more they realise that there is to know.

Pretending we are certain is a defence mechanism to overcome our fear of the unknown. Because if we don’t actually know the answers and can’t control everything - then what? It’s scary.

Learning something new, outside of my comfort zone re-ignited the spark. Over the next summer I devoured a load of new books that also provided more learning and fodder for new business ideas.

In every business I’ve ever worked with, the handbrake on success is the owner.

There are two simple strategies to combat any dropoff in curiosity and learning capacity: • Go and learn something new that is out of your comfort zone and your traditional sphere of knowledge. This could be as simple as reading a book on a topic you know nothing about, or network with people where you are the least knowledgeable person. ire young people in your business - graduates and apprentices. Their new eyes on your old problems will get you re-enthused as you create new solutions together.

I hope this article gets you thinking. Ask yourself the question: “What can I still learn that might just make me great?” Get reading, exploring and learning and you just might find out.

Further reading If you’re looking for a great book to challenge your thinking and get your passion for learning re-ignited then read The Ego Is The Enemy by Ryan Holiday.

I loved it and there is some very practical and inspiring advice contained within its pages.

The brightest people on the planet are still researching and asking questions

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

He is recognised as one of the leading consultants to financial advisers in the UK. Professional Adviser magazine has rated him one of the Top 50 Most Influential people in UK financial services on three occasions.

You can follow Brett online and via social media: Twitter: @brettdavidson Facebook: www.facebook.com/FPAdvanceLtd LinkedIn: http://www.linkedin.com/in/davidsonbrett Website: www.fpadvance.com

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Name

Sector

Country

BlackRock Continental European Income Class A

Managed Funds

Managed Funds

7.31

Legg Mason IF Brandywine Income Optimiser Class X

Managed Funds

Managed Funds

7.20

Jupiter Strategic Bond Class I

Managed Funds

Managed Funds

7.20

Invesco Perpetual Global Financial Capital Class Z

Managed Funds

Managed Funds

6.73

Weight (%)

Invesco Perpetual European Equity Income

Managed Funds

Managed Funds

5.90

M&G Global Dividend Class A

Managed Funds

Managed Funds

5.85

New Capital Wealthy Nations Bond USD

Managed Funds

Managed Funds

5.39

Aviva Investors Property Trust Class 2

Managed Funds

Managed Funds

5.19

UBAM UBAM Global High Yield Solution IHD

Managed Funds

Managed Funds

5.08

Man GLG Strategic Bond Professional D

Managed Funds

Managed Funds

FundsLibrary for Advisers 5.02

60.88

Total

ICB SECTORS

MARKET CAP

You’ll wonder how you managed without us £50bn+

40.34%

£20bn - £50bn

24.69%

£10bn - £20bn

16.52%

£5bn - £10bn

12.74%

£1bn - £5bn

4.60%

£250m - £1n

0.00%

£0 - £250m

0.00%

Bonds

0.00%

Other

0.01%

Cash

1.10%

ICB Level: Industry

Bonds

Financials

Non-Classified Industrials

Consumer Goods Health Care

Consumer Services

Cash and Equivalents Telecommunications Oil & Gas

Technology

Basic Materials Utilites

Managed Funds

Alternative Trading Strategies 0

10

20

30

Weight (%) The Industry Classification Benchmark is a product of FTSE International Limited and has been licensed for use.

Access FundsLibrary’s vast online database of fund data and documents. Our data is sourced directly from Fund Groups and validated by us for enhanced accuracy. Register today and enjoy this essential resource for advisers and financial professionals.

GEOGRAPHY

View thousands of financial products, store your favourites and perform fund comparisons.

United Kingdom

26.28%

United States

16.37%

Managed Funds

10.01%

Direct Property and REITs

6.30%

Cash and Equivalents

4.64%

Download KIIDs, factsheets, ratings reports and more in seconds.

Japan

3.50%

Switzerland

3.44%

Netherlands

2.96%

Germany

2.55%

Other

20.20%

DEBT MATURITY

Summarised Factsheet

Professional Investor Factsheet

Private Investor Factsheet

10 to 15 years

2.82%

5 to 10 years

8.52%

Under 5 years

10.73%

Unclassified

14.11%

Other

53.81%

Cash and Equivalents

Portfolio Analysis

4.62%

Performance

Income & Charges

Name

Sector

Name BlackRock Continental European Income Class A

Sector Managed Fu

3.43%

BBB

Non-Classified Jupiter Strategic Bond Class I Invesco Perpetual Global Financial

4.95%

BB

7.02%

B

3.86%

CCC

0.80%

Risks

0

10

20

New M&GCapital Global Wealthy DividendNations Class A Bond USD

Total

New Capital Wealthy Nations Aviva Investors Property TrustBond ClassUSD 2

Weight (%)

Property

Private Investor Factsheet

Professional Investor Factsheet

19.42

Mixed Investment 20-60% Shares 16.65

Name

31/08/2007 £0.50

5.19

Pound Sterling

5.08

21

4.33 3.85

Unclassified

3.79

Equity-Asia Pacific ex Japan

3.26

6

AUSTRALIAN GOVERNMENT Novartis AG

Weight1.54 (%)

Equity-Global Emerging Markets

1.24 19.42

United Kingdom

UK Equity Income

8

UNITED STATES GOVERNMENT

5.39

Japan

Total

% Growth

POUND STERLING RECEIV. 05APR16 JPM

5.85

Launch Price

Cash and Equivalents £ Strategic Bond

PERFORMANCE

Prusik Asian Equity Income Class 1B

11.19

Launch Date

Equity-USANumber Of Holdings

ASSET ALLOCATION

UBAM UBAM Global High Yield Solution IHD

IMA Mixed Investment 13.22 20-60

£ High YieldFund Currency

Latest Report & Accounts

Aviva Investors Property Trust Class 2

100.00

16.65

United States

Johnson & Johnson

Health Care £1bn -- £10bn £5bn £5bn

United States

0.00% 0.67 12.74%

Total

£250m - £1n £1bn - £5bn

Bonds £0 - £250m

22.60% 0.00%

26.28% Other Bonds

1.10% 0.00%

16.37%

Cash Other

0.00% 0.01%

Cash

1.10%

10Y

From:

To:

3 Months

6 Months

1 Year

3 Years

-1.64%

1.29%

-2.28%

12.41%

-

Benchmark

-2.02%

-0.01%

-3.30%

9.13%

20.75%

Sector

-2.02%

-0.01%

-3.30%

9.13%

20.75%

-/-

-/-

-/-

-/-

-/-

-

-

-

-

-

DISCRETE PERFORMANCE Feb 2012 Feb 2013

Feb 2013 Feb 2014

Feb 2014 Feb 2015

5 Years

AAA

3.52%

AA

1.67%

A

3.43%

0.69

19.95 0.00% 4.60%

21.59% 0.00%

MARKET CAP

2.82%

United States

£0 - £250m £250m - £1n

20.20%

Fund

Feb 2011 Feb 2012

8.36% 0.67 16.52%

2.96%

CUMULATIVE PERFORMANCE

Quartile

United Kingdom

2.55%

10 to 15 years

Rank

£5bn - -£10bn £10bn £20bn Telecommunications

Germany

5.39%

0.74

Vodafone Group

3.21%

Over 15 years

0.83

£10bn £20bn £20bn --Technology £50bn

Jan 16

10/03/2016

11.56% 24.69%

Microsoft Corp.

3.44%

DEBT MATURITY

5Y

18.45% 40.34%

France

Oct 15

10/03/2015

3Y

Switzerland

3.50%

Other Jul 15

1Y

Non-Classified

Health Care

4.64%

Apr 15

6M

Bonds

£20bn £50bn+- £50bn

6.30%

-6

3M

1.47

20.34% 1.35

5.85

-4

3.26

Non-Classified

Cash and Equivalents

-2

Managed Funds

£50bn+Health MARKET CAPCare

Global

Netherlands

5.08

Technology

Non-Classified

10.01%

5.39

Managed Funds

MARKETTelecommunications CAP

11.19

0

1M

5.19 Fu Managed

Country

Bonds

Total

13.22

Switzerland

-8

Managed Fu Weight (%)

Direct Property and REITs

Japan

100.00

Managed Fu

Direct Property Total ManHealth GLG Care Strategic Bond Professional D and REITs

Managed Funds

Global Bonds

4.12 Managed Fu

Managed Fu

Specialist

2

6.00

Managed 5.67 Fu

UBAM UBAM GlobalBond HighProfessional Yield Solution Man GLG Strategic D IHD

Europe Excluding UK

4

6.30

UBAM UBAM Global HighTrust YieldClass Solution Aviva Investors Property 2 IHD Sector

Name

Global Bonds

Summarised Factsheet

KIID

Income

The Industry Classification Benchmark is a product of FTSE International Limited and has been licensed for use.

GEOGRAPHY

£43.81m

Managed Fu

Developed Government Bonds

30

Weight (%)

4.62% Admin & Trading

Fund Size

7.74 Fu Managed

M&G Global Dividend Class AEquity Invesco Perpetual European Investment Grade Bonds

67.84%

CashRatings

Capital Class Z

Cash and Short-maturity Bonds

2.29%

Other

53.38

Invesco Perpetual European EquityCapital IncomeClass Z Global Financial

Real Estate

0.00%

No Rating

Benchmark Europe Excluding UK

Global

Managed Fu 16.32

A

UK Equity Income

Specialist

Jupiter Strategic Bond ClassIncome I Legg Mason IF Brandywine Optimiser Class X

High Yield and Emerging Markets Bonds

IA Sector

DOCUMENTS

Managed Fu

Developed Market Equities

1.67%

D

Weight (%)

Legg Mason IF Brandywine Income Optimiser X BlackRock Continental European Income ClassClass A

AA

£ Strategic Bond

Multi Manager Team

Yes

3.52%

NameDETAILS

Managed Fund Since: 31/08/2007

Yes

SIPP Allowable

ASSET ALLOCATION

TOP 10 HOLDINGS

MULTI MANAGER TEAM

United Kingdom

NISA Allowable

AAA

ASSET ALLOCATION

FUND MANAGERS

Unit Trust

Fund Domicile

Name

Register in less than a minute at www.fundslibrary.co.uk 5.39%

Fund Type

PORTFOLIO ANALYSIS

MARKET CAP

Over 15 years

OVERVIEW

KIID

Latest Report & Accounts

3.21%

France

Overview

DOCUMENTS

ADVISE R SPOTLIGHT March 2017

Adviser Spotlight — Sandy Robertson In this popular monthly feature, I FA Magazine talks to leading advisers about what’s working well in their financial planning businesses. This month, Sue Whitbread talks to Sandy Robertson, Managing Director of Acumen Financial Planning, about building a great business and why the five Fs are so important 1. How did you originally get into financial planning as a career? When and why did Acumen start?

Many years ago whilst I was MD of an accountancy practice, I attended a CPD course in Glasgow organised by ACCA. As part of it, the late David Norton, a past president of the Institute of Financial Planning (IFP), a chartered accountant himself and a leading financial planner gave an inspiring presentation on financial planning. He encouraged me to go to the then tiny IFP Annual Conference in Oxford for a couple of days. The rest as they say is history, my interest in financial planning was firmly established. I was information hungry, and was inspired to sit the IFP’s fellowship examination.

After a brief period of advising within our Accountancy firm, Acumen Financial Planning was established as an independent entity in 2002 in a low-key fashion with a small team.

2. So, if we fast forward 15 years to look at Acumen today - what does the business look like now?

We have a team of 36 staff based across four sites in Scotland and one planner based in Norwich. We have 13 planners, supported by 9 paraplanners, and an admin team of 6. In addition, we are well under way in developing a small and focused business support team responsible for; compliance, training, marketing and communication, IT, finance, HR, management information and anything else that is not directly associated with supporting our clients.

We currently serve 1750 clients with FUM of £400 million. In recent years and as the team has developed, we have averaged net new annual increases of £20 million which is a combination of existing and referred clients adding more to our platforms than they withdraw. Over and above that, as you know, financial markets have been kind to us in recent years and a small acquisition along the way, pulls the numbers in the right direction.

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We have always been focused on providing exceptional service - getting our clients from their various A to Bs in life with complete financial security. This focus is 20% investing and 80% planning.

We operate a family culture and are fiercely independent, answerable only to our clients, our conscience and to the various professional bodies with which we have qualifications

When it comes to our investment strategy, our clients are coached to be patient investors so that they can participate in long term investment returns.

Provided we ensure the cost of investing is managed to a minimum, and we ensure all controllable risks (including taxation) are managed effectively, the returns our clients achieve during their lifetime will reliably underpin their various plans.

The main risks to clients’ plans are themselves, their health and their circumstances. This is why 80% of our focus is on this piece, because at least some of it is controllable.

3. What are the main principles on which Acumen Financial Planning is set up and run? What’s your vision for the future of the business and for the service you deliver to clients?

We operate a family culture and are fiercely independent, answerable only to our clients, our conscience and to the various professional bodies with which we have qualifications.

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ADVISE R SPOTLIGHT March 2017

Our principles are: • Work tirelessly in our clients best interests.

• Clients' interests are best summarised in a plan.

• Don't invest a penny of clients’ capital until their plan - and their real life risks to the plan - are understood.

• Be careful with clients’ capital; defend it against institutions and intermediaries, their sales targets, fancy schemes, new investment ideas, illiquid investments, and products with dates, lock ins, kick outs etc.

Our vision is that financial planning will eventually reach a tipping point and it will be recognised by the government, regulators, graduates and clients as being equal to or ahead of the legal and accounting professions. Our mission is to play our part of that in Scotland and perhaps further afield.

we recently chose Voyant as a successor due to its superiority in; modelling capability, visuals, taxation, modelling and data entry. Our next project is to completely review CRM, data security, and call monitoring – enough to be getting on with.

5. What are your strategic business goals for 2017 and beyond? Are you planning any major changes?

We are thinking more along the lines of 2020 and what we will need to be by then if we are to accomplish our Mission. We want to make tangible progress toward: • client facing IT functioning as well as Amazon’s • Premises having a relaxed and professional ambiance for client meetings.

4. How important is technology in working towards that vision? You developed your own cash flow modelling system many years ago. How has that changed over the years and does it still meet your needs?

Technology is inextricably linked to our lives these days. Clients have their own views which are based on their real world experiences; electronic banking, Amazon, iTunes, booking airline tickets, etc etc. Their service expectations are much higher than they were 10 years ago, and so financial planning has to adapt or run the risk of not being at all relevant to the next generation of potential clients. Our own cash-flow modelling system was created several years ago, and continuously improved, functioned very well. After doing our research,

Our vision is that financial planning will eventually reach a tipping point and it will be recognised by the government, regulators, graduates and clients as being equal to or ahead of the legal and accounting professions

I FAmagazine.com

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ADVISE R SPOTLIGHT March 2017

• Have the business and its core offerings of a scale to offer real and lasting career opportunities to bright, hard working and engaging people.

This is aspirational and a big ask I know, but it is the way we are thinking.

6. Acumen is a CISI Accredited Financial Planning Firm and also a Chartered Financial Planning firm by CII. How important are these accreditations to you, to the business, and to clients also?

We became an accredited financial planning firm shortly after the IFP began accrediting firms in 2011.

It was a culmination of events really. We had been approached by several firms to join forces with them and we had been thinking about whether we wanted to join, sell or go it alone. We decided that Acumen was not for sale and so we decided to future proof the business by making sure we had the right people, processes and systems in place to be in as strong a position as we possibly could be. So accreditations and awards are very important in that they recognise that we have made significant progress along the way. When we have vacancies, we are getting strong candidates coming through who want to play their part in our future.

We were delighted to be awarded the CISI Accredited Financial Planning Firm of the Year in October 2016. We have a strong business supported by a loyal and growing client base and a fantastic team. We are all very proud of what we have achieved.

• Sticking to the business principles we have already mentioned, and not wavering from that.

8. What are your main business challenges at present?

Our main challenge is finding a reliable way to grow our own talent.

9. Marketing is often a challenge for financial advisers and planners. Do you have any tips for other advisers or financial planning firms on how to keep new enquiries coming in – and also on keeping existing clients happy with the service they receive?

We recruited a marketing professional whose tips include:• Keep your business client focused and consider profiling your target market • Focus on your areas of expertise and keep your messaging consistent and clear • Ask clients for feedback at meetings and via surveys on matters such as your service areas, newsletters, website etc.

• Write articles on various topics and case studies.

Local and trade press can provide useful window toward potential clients and employees.

• Events and seminars work well whether hosting the entire event, or being a guest speaker at events.

7. What have been the biggest drivers of success for the business over the years?

I would put our success down to the following four elements:

10. Aside from work, what do you like to do in your spare time?

For me it’s the five Fs; family, friends, fitness, fun, food and wine.

• Selling the accounting business to its management in 2009 and focusing all our energy in financial planning.

I am very content in my personal life. I don't have a bucket list because there is nothing I need or want other than in these five areas. Combinations of Fs are best of all, family or friends for dinner is great.

Cycling with friends followed by a coffee or a beer with plenty of banter hits the spot too.

• Having a young management team of true professionals in place.

• Believing in and communicating what financial planning is all about to clients.

About Sandy Sandy Robertson is managing director of Acumen Financial Planning, and has worked in banking, accounting and financial services for 40 years. In 1995, he was the first person in Scotland to become a fellow of the Institute of Financial Planning, now part of the CISI. Sandy is a member of the Institute of Bankers in Scotland, a fellow of the Chartered Association of Certified Accountants, a Certified Financial Planner and a Chartered Fellow of the Chartered Institute of Securities & Investment.

He is trained in Collaborative Practice in accordance with the International Academy of Collaborative Professionals and helps develop standards on financial matters of divorce and separation.

Acumen Financial Planning was formed in 2002 and has grown from a small team to an established firm, with some of the highest qualified planners in Scotland. An Accredited and Chartered firm, Acumen Financial Planning has offices in Aberdeen, Edinburgh, Elgin and Peterhead.

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FI NAL SALARY TRANSFE RS March 2017

The division bell Transferring out of defined benefits pension schemes – from compliance no-no to acceptable advice in one leap. Compliance consultant Tony Catt analyses why advisers should tread this path very carefully indeed

Historically, moving money out of Defined Benefits (DB) schemes was considered to be highly unlikely to be good advice for clients. In 2006/7, I was doing some pension transfer work for a firm.

I looked at more than 50 cases and ended up actually transferring only two of them. This was because the Transfer Value Analysis Systems (TVAS) were calculating growth rates that were considered to be too high for the investment outside the scheme to have any chance of providing better benefits than the existing company scheme.

As far as the FCA is concerned, this issue still represents such a high risk that advisers are expected to retain pension transfer files “indefinitely�. This has raised warning lights for advisers, since it infers that complaints or regulator reviews could take place at any time in the future without any end date. This potential liability has stopped many advisers and firms from operating in this area. The Professional Indemnity Insurance providers also see this type of business as high risk and adjust their premiums accordingly.

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DB schemes are still the most valuable retirement planning vessels. The guaranteed benefits are more valuable than by can be provided by any other type of pension currently available. It is unlikely that taking money out of those schemes offers best value to members. However, in recent times many individuals with final salary schemes have been tempted by enhanced transfer values available, and the flexibility that the new pension freedoms regime provides in terms of gaining access to capital.

Over time, various schemes have also offered enhanced benefits for members to take their accrued benefits from the schemes. These have either been via increased transfer values or even cash payments. These enhanced benefits simply add a level of complexity to the number crunch needed to calculate whether the member would be better off to take those benefits rather than remain in the scheme.

As a rule of thumb, it is unlikely that the member will be getting full benefit by leaving the scheme, otherwise the scheme sponsor would not be offering the enhancement.

Low interest rates Let us take a look at some of the background detail here. We all know that annuity rates are linked to interest rates and gilt yields, both of which are sitting at historic lows This has meant that individuals get even less income when purchasing

I FAmagazine.com

FI NAL SALARY TRANSFE RS March 2017

As far as the FCA is concerned, this issue still represents such a high risk that advisers are expected to retain pension transfer files “indefinitely”

an annuity. Historically, the annual yield on the United Kingdom Government Bond 10Y reached an all-time high of 16.09% in November of 1981 and a record low of 0.52% in August of 2016. The Bank of England base rate was cut to 0.25% in August 2016 after the EU referendum. 10-year gilt yields fell to a historic low of 0.52% in August, although they have risen to 0.8% in October and recovered to 1.32% by January 2017, as shown in the chart below.

Interest rates underpin the cost of buying a pension in the market place and when you look at the transfer of a final salary benefit, the fall in interest rates has enhanced the transfer value quite considerably over a short period of time.

Anecdotally, advisers are reporting that they are seeing a dramatic increase in the transfer values that clients have been getting. One adviser I worked with had a case where the transfer value was worth

UK GOVERNM ENT BOND 10Y 6 5 4 3 2 1 0 2008

2010

2012

2014

2016

Source: www.tradingeconomics.com, Department of Treasury, UK

While this may be bad news for those clients with DC schemes wanting the security of a guaranteed income that annuities provide, for those wanting to transfer out of a DB scheme it has provided a boost to their transfer value.

I FAmagazine.com

40% more than it was just over a year ago. When he looked at it before, the numbers did not stack up, but having seen such a big jump, meant it was worth considering a transfer again.

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FI NAL SALARY TRANSFE RS March 2017

Anecdotally, advisers are reporting that they are seeing a dramatic increase in the transfer values that clients have been getting

So what has changed?

You will not need me to tell you that the pensions freedoms introduced in the Budget of 2015 have changed the landscape of retirement planning and advice. The ability of people to take control over their own money in their pension plan has led to a ground-shift for advisers and also for providers too.

Our current society is more keen to go for instant gratification over good long-term decisions.

Therefore, the financial services industry is tasked to provide flexibility wherever possible. There are problems with this in that the providers are rarely able to offer all the flexibility that the government and regulators have promised to be available. This happened with pension freedom.

Pension freedom has led to a shift in emphasis; to consider the “shape” of retirement benefits.

Previously we lived with the “one size fits all” annuity, which generated a regular income for people in retirement, probably after an initial lump sum was paid on retirement. Whilst this gave guarantees of income throughout a lifetime, this arrangement was not suitable for everybody.

The pension freedoms have removed the limitations set on income drawdown arrangements that have gradually become more mainstream. Phased retirement has been available on personal schemes for many years and this has gradually loosened into the income drawdown that we now know. Income from drawdown was limited to figures provided by the Government Actuaries Department (GAD)

24

and were largely in line with annuity rates, although slightly higher. Drawdown was viewed as higher risk as it did not have the guarantee of the income level offered by traditional annuities.

Within DB schemes, the benefits are payable at the scheme Normal Retirement Date (NRD), with reductions made for early retirement and possibly some enhancement for delaying taking benefits after the NRD. Anybody that did not fit the scheme plan was disadvantaged.

Originally, Defined Benefit schemes were not included in the pension freedoms environment.

However, the rules around this were amended to enable transfers to be undertaken.

Shape of benefits in retirement Nowadays, as more people work flexibly, they want to take their benefits with similar flexibility. They may not wish to take the full initial lump sum. Or they may still continue working, or run down their business and look to take varying levels of income from their fund.

As well as offering variable and flexibility in income, personal pension plans now also present an estate planning opportunity as funds can be passed on after death to a spouse, children or grand-children.

For people suffering ill-health, this is an attraction to transferring out of DB scheme, where the benefits would be halved or even totally lost on death.

It is this change of shape of benefits, made available within more plans as providers have moved with customer demand, that has made the move out of DB schemes more attractive. It has led away from the slavish dependence on TVAS calculation to govern whether transfers are considered to be suitable advice. TVAs calculators are still providing the figures, but those figures are only truly relevant if considering identical benefits to those available within the DB scheme.

I FAmagazine.com

FI NAL SALARY TRANSFE RS March 2017

Advisers need to make sure, when considering any kind of transfer out of a DB scheme that the benefits of that scheme, are made clear to the client. The exact terms of the benefits should be set out to see the income that would be paid and possibly calculate the total value of the payments up to a certain age – 85/90 or whatever the average life expectancy is at that time.

Advisers still need to be cautious in practising in this area as the short term gains and flexibility may be found to be as damaging and toxic as other ill-conceived ideas, such as mortgage endowments, split capital investment trusts and UCIS investment

DB scheme administration issues Any moves to build in flexibility to DB schemes would suffer from similar issues of delivery.

Partial encashments would be very difficult to administer and would cause the trustees and administrators huge issues.

Due to the fact that many DB schemes are either shutting or not allowing new members, there will

not be the continuous turnover of membership or the volume of contributions that the schemes used to receive. Therefore, most schemes are in the throes of decumulation.

To build in flexibility of benefits in DB schemes at this time of running schemes down would need to be handled with great care. As the schemes contract, with members leaving or retiring, great care needs to be taken to ensure that there is sufficient value maintained in the schemes for the members that have not yet reached retirement age.

The calculations for flexible benefits could lead to distortion of the value of the benefits for individuals remaining in the scheme.

In summary It should be remembered that these transfers can only be undertaken by advisers within firms that have the FCA permission. They are still considered to be high risk by the FCA and detailed consideration of the suitability to the client for each case needs to be carefully recorded. The fact that pension freedoms have increased the attractiveness of leaving schemes at the same time as record low gilt yield rates have made it easier to exhibit suitability.

Advisers still need to be cautious in practising in this area as the short term gains and flexibility may be found to be as damaging and toxic as other illconceived ideas, such as mortgage endowments, split capital investment trusts and UCIS investment. A defence that it seemed like a good idea at the time may not save the advisers in the future.

About Tony Catt Tony is a freelance compliance consultant who undertakes a whole range of compliance duties for his IFA and restricted adviser clients. He was previously an adviser with a directly affiliated firm, which helps with his current compliance duties.

Email - info@tonycatt.co.uk Phone - 07899 847338

I FAmagazine.com

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U K EQU ITI ES March 2017

This is the modern world With the FTS E 100 index heading back toward all-time highs in February, is it time to be cautious about investing in U K equity funds?

Oliver Brown, investment director at R.C. Brown, highlights some of the ways an active fund manager can add value for investors in these challenging times

Following the strong performance by the UK equity market in 2016 and the short term uncertainty that the Brexit process continues to generate, it is not difficult to be cautious about the outlook for UK equities in 2017 – a stance which seems to be being taken by many advisers at the moment.

Despite this, we remain broadly positive towards equities in 2017 noting that whilst the UK stockmarket is not offering exceptional value, it does not appear to be expensive either when we compare with history or with other major markets, particularly the US. Looking for value Indeed, I can tell you that parts of the market do still offer reasonable value, a rotation that we’ve already started to see with banks, oil and mining stocks starting to find favour, funded out of bond proxies such as consumer staples whose valuations have become increasingly stretched. Much of the UK stock market gain which we saw in 2016 happened as a result of the depreciation of sterling against global currencies, in particular the dollar, following the Brexit referendum result. It is possible that we may see a partial reversal of this, which would put pressure on the large number of dollar earning companies in the FTSE. Nevertheless, the fears of a global recession that were surfacing at the start of 2016 have subsided and expectations of growth, particularly in the US, have risen.

So, with the FTSE recently hitting all-time highs and many advisers beginning to question if and where value can still be found in UK equities, it’s time to consider a range of options.

Of course, when it comes to building robust and well diversified portfolios

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U K EQU ITI ES March 2017

for clients, advisers have concerns about closet trackers, and also about the risks to diversification through different funds having many of the same underlying holdings. You’re trying to minimize risk after all, not to increase it!

As fund managers, at R.C.Brown we take a common sense approach to the macro-economic outlook, knowing that consensus, whatever that is, is likely to be wrong. We do not attempt to outsmart consensus.

Instead, we construct a well-diversified portfolio of 50-70 stocks, nearly all of which we have purchased using our primary opportunities approach. This is where we seek to buy into companies that are having liquidity events at a discount to the prevailing market price thus protecting our downside risk.

Strategic buying We look to buy into good quality companies in four ways. Firstly, at IPO, this is our opportunity to buy in at ground level and in some cases this leads to exceptional returns. Secondly a share placing by the company to raise money, typically for expansion purposes. Thirdly, a placing by a known strategic or forced seller where we are comfortable with their reasons for selling. And fourthly, occasionally we may buy large blue chip stocks in the secondary market on market setbacks on diversity grounds.

For advisers looking for increased portfolio diversification, this can give reassurance that our approach is different to that of other asset managers.

Interestingly, 2016 saw the lowest value of funds raised on the UK market since the financial crisis of 2008. Nevertheless, we still saw a number of attractive opportunities in the small cap arena. We expect this to continue in 2017 and also anticipate seeing mid and large cap IPOs that were delayed due to the considerable market and political uncertainty which existed last year. A number of these companies are likely to go straight into the FTSE 100 index. One example here is the telecoms company Telefonica, which this year is expected to seek a flotation for O2 to reduce their parent company’s much indebted balance sheet. Whilst not being such household names, TI Fluid Systems and Misys both failed to float in 2016, but may try again in more sanguine market conditions during 2017. Logicor, an owner of warehouse facilities whose clients include Amazon, is expected to be the largest IPO in the UK for a number of years with a predicted flotation during the first half of 2017.

New opportunities A stable market background coupled with historically low UK interest rates should also result in plenty of M&A activity, all of which is good news for investment managers. Again we expect to see a considerable number of placings as companies look to expand, consolidate their sector and grow

I FAmagazine.com

profitability. With the FTSE 100 currently trading above the 7000 level, we also expect to see a large number of secondary sell downs, as private equity in particular look to exit their investments in order to recycle capital into new opportunities. The government is widely expected to sell its remaining stake in Lloyds bank, putting it fully into private ownership. These are all examples where managers with a proven strategy can seize opportunities to capitalize on real value situations which might not be open to others. For financial advisers seeking to diversify in order to minimize risk and volatility, then this is key.

As ever, there will be bouts of market volatility given the global growth concerns, rising interest rates and a political outlook that has rarely looked as uncertain. Despite this, we believe that our approach of buying into companies that typically have a growth and quality bias and which we buy at a discount to the prevailing market price, provides us with the opportunity to perform well across a variety of market conditions.

Key points:

1

Primary opportunities or liquidity events are often useful ways for investment managers to buy into a company. The price is fixed, you can buy in size and all news should be out in the market place.

2

Stick to companies that have quality characteristics - strong market positions, good and stable margins, potential market disruptors, and management who deliver.

3

In times of uncertainty and market volatility, it is important to hold your nerve as you buy at even greater discounts. In time, this will produce even stronger returns as markets recover.the balance between health, wealth and happiness, not just lecture others about it.

About Oliver Brown Oliver is investment director at R.C. Brown. He is the manager of the MFM UK Primary Opportunities Fund and other segregated accounts whilst also leading R.C. Brown’s research into UK ‘primary’ market opportunities. He graduated from Birmingham University with a degree in Money, Banking and Finance, he qualified as a Chartered Accountant with Grant Thornton, where he worked with listed clients in a variety of sectors, specialising in the construction, leisure and IT industries. He joined RCBIM in 2006 and is the current President of Bristol Junior Chamber of Commerce.

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A CASE STU DY APPROACH March 2017

Success through acquisition - a case study approach Mergers & acquisitions are certainly a key talking point amongst financial planners right now. To reflect this, we’ve asked Louise Jeffreys, M D of I FA Magazine’s sister company Gunner & Co, to share her insight into some of those firms which are active buyers of financial advisory and planning firms in the U K. We’ll be bringing you a series of case studies on this very topic during 2017.

If you don’t grow as a business, you go backwards – and with ever increasing cost. Acquisitions are a great source of new clients and also a great way to add to our complement of competent advisers.”

- Kevin Homfray

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A CASE STU DY APPROACH March 2017

To kick off this new series, Louise talks to Newell Palmer, a regional IFA business based in the Midlands. It has grown to be the 49th largest IFA in the UK*, a position helped significantly through the acquisitions it has made over the last 5 years.

About Newell Palmer Newell Palmer’s client-centred drive for growth is not a new thing. It has been at the forefront of the firm's vision for the past 20 years, placing a real emphasis on the client in its development process.

And whilst the business could always attribute significant growth to organic new business through referrals of happy clients & professional connections, Newell Palmer realised early on that scaled growth is most efficient through making sound acquisitions.

Roll on to today, the business now has over 40 successful acquisitions under its belt and offices in Wolverhampton, Bromsgrove & Nuneaton. This is proof enough that their model for growth works.

Here we’ll look at how they have developed their growth strategy. We will also look at what makes an IFA business an attractive proposition to buyers such as Newell Palmer.

The background Newell Palmer was founded in 1993 by Philip Stepp.

At that point, the business specialised in providing independent financial advice to the owners of small and medium-sized businesses. Back then, leads were generated via telesales and the cold calling of companies.

Gradually, more advisers were employed and the business started to grow. In 1997, the decision to partner with a local accountancy practice resulted in Newell Palmer’s first ‘joint venture’ being established; a business which was known as Lowe McTernan Financial Planning Ltd based in Rubery.

The success of the first joint venture saw increasing number of clients being obtained by cross referral from the accountancy side, generating increased levels of income. The firm built on this success with four additional joint ventures; Crombies Financial Services Ltd, Moffat Gilbert Financial Planning Ltd, KGJ Financial Services Ltd and MDP Financial Services Ltd. Each of these businesses was managed by a long standing Newell Palmer employee.

Over time, Newell Palmer took the decision to dissolve its joint venture companies, either through fully purchasing the businesses’ shares from the accountants, or in the case of MDP Financial Services Ltd, selling its interests to another IFA firm, who were looking for a ‘joint venture’ partnership.

Following the dissolution of its joint ventures, Newell Palmer set up offices in Bromsgrove and Nuneaton, moving the staff and client servicing I FAmagazine.com

operations to these new locations. In the case of Crombie’s Financial Services Ltd, this business was rehoused at the Newell Palmer head office in Wolverhampton.

From JV to acquisition As part of their strategy to continually grow their business and increase client numbers in a more cost effective manner than just establishing more joint ventures, Newell Palmer then began exploring the acquisition of established IFA firms. They subsequently went on to purchase a number of IFA businesses in the years to come.

In 2006 Newell Palmer established Newell Palmer Trustees Ltd, a pension scheme administration company. At the time, Newell Palmer were providing the relevant support to clients but were using a third party to finalise the administration. Newell Palmer Trustees Ltd was incorporated to bring this function in-house and add economies of scale to both businesses.

Today, continuing that growth trajectory is an essential part of their future plans; “If you don’t grow as a business, you go backwards – and with ever increasing cost. Acquisitions are a great source of new clients and also a great way to add to our complement of competent advisers.” comments Kevin Homfray, Newell Palmer’s Finance Director and leader of all the company’s acquisition projects.

Looking ahead Newell Palmer’s commitment to growth continues for the next 2 years, with one of their key goals being the addition of a further £200m of ‘on platform' funds under management to take them to almost £1bn on platform funds.

First and foremost, they are looking for IFA businesses which are committed to putting their clients first. Their pledge when buying a firm is the promise to deliver the firms’ clients the very best whole of market service that is available.

They are particularly interested in financial advice businesses which operate within an 85-mile radius of Birmingham. Firms that have previously been acquired range from £30k to £2m in consideration, so Newell Palmer are keen to talk to any IFA within the 85-mile radius, which is currently managing clients’ investments and pensions.

One such acquisition was that led by Keith Barrett, who sold his business to Newell Palmer in 2012.

Keith comments on his experience: “In 2012, with my own retirement no longer a distant event, the priority for me was to move my corporate and private clients into an alternative professional environment that could deliver appropriate advice for them and to provide servicing support in the longer

29

A CASE STU DY APPROACH March 2017

term. I was delighted when Newell Palmer agreed to acquire my pension consulting practice whilst, at the same time, I was slightly nervous about no longer ‘being in charge’.

I need not have worried! The transition was painless and relevant clients have been comfortably assimilated. In addition – and not unimportantly – I was paid all due sums (for my business) in a timely manner. It has been a pleasure to work with the team at Newell Palmer over the past three years. In just three months’ time, I shall be formally retiring and I am entirely satisfied that my clients have been left in good hands.”

the business now has over 40 successful acquisitions under its belt and offices in Wolverhampton, Bromsgrove & Nuneaton. This is proof enough that their model for growth works

Newell Palmer Key Facts: Year Established: 1993 Office Locations: Wolverhampton, Bromsgrove & Nuneaton Turnover: £10.3m Recurring Income: £7.9m Funds on platform: £754m Number of advisers: 31

I’ve worked with Newell Palmer on a number of M&A projects, most recently helping them with their acquisition of AbacusOne at the end of 2016. Kevin is great to work with, his approach is incredibly straight and honest and you always know where you stand. When it comes to the business of acquisition, this is a characteristic not to be underestimated.

From my experience, Newell Palmer make fair valuations of businesses in the market, and they undoubtedly have significant experience which makes the process much smoother for the seller.

I’m pleased to say that Kevin is a very welcome participant in Gunner & Co.’s ‘Building Value in Your IFA Business’ seminar in Birmingham, hosting a round table for the last 2 years. He has also agreed to take part again this year, on the 28th September.

If you would like to know more about Newell Palmer’s proposition or Gunner & Co.'s seminars contact me on 0117 9926 335 or email louise. jeffreys@gunnerandco.com *Source, FT Adviser Top 100 Firms 2016

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I FAmagazine.com

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RICHARD HARVEY March 2017

A tangled Webb When it comes to changes to the state pension age, Richard Harvey wonders who did what and when as he questions whether the school swot ever quite lives up to his reputation in real life

We all remember the school swot - you know, the goodytwo-shoes who never broke the rules, always took the credit and was squeaky clean when the teacher was looking for someone to chastise.

I suspect that little Steve Webb - who grew up to become the government's Pensions Minister - might have fitted that description. And as newly knighted Sir Steve Webb, he’s still at it.

Aware that he is the butt of righteous fury from an entire generation of women after their retirement age was hiked from 60 to 65, he is now blaming that decision on the civil service, and says David Cameron and George Osborne should also share some of the opprobrium.

Poor advice Speaking to the Institute of Government as part of a series of 'Ministers Reflect' talks (arguably more appropriately called 'Mea Culpa'), sad Steve complained that the advice he had received from the civil service was "very poor".

Warming to his subject, he said there was at least one decision with regard to women's retirement age that he would

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have "done differently if we'd been properly briefed, and we weren't".

And he dragged Cameron and Osborne into the mire, saying he went to Number 10 to get them to agree some kind of transitional arrangement, to soften the blow for women needing to labour longer before claiming their already less-than-generous State pension, but no dice.

Cover your back He said that, frankly, everyone had got their sums wrong. They calculated that no woman would have to wait more than an extra year for her pension. In fact, thousands of women would have to wait another two years, or even longer.

Now I might be missing something here, but instead of spraying the blame around, you might query whether Steve Webb should actually have held his hands up, and admitted absolute culpability. He was, after all, Pensions Minister. The clue was in his title.

But then, politics and the civil service are the world's finest training grounds in covering one's posterior when the going gets rough, and passing the buck when it looks as if a little local

difficulty is going to escalate into a crisis.

Public Sector Primary Rules: Never take the blame. Don't admit responsibility. And make sure other people end up in the firing line.

Entire careers have been built on this philosophy. Perhaps it is just one of the reasons why disillusioned voters have put Donald Trump in the White House and Theresa May on the fast train to Brexit.

Surprise, surprise?

Meanwhile on a slightly different matter, two new surveys have confirmed what any IFA would deem to be the bleedin' obvious.

Workplace pensions firm Now: Pensions report that most workers would like to retire at 61, while they are "healthy enough to enjoy themselves", but don't think they will be able to afford it.

Meanwhile, finance firm ING reports that a third of Britons have no savings at all, while a quarter have managed to squirrel away less than three month's take-home pay.

Quod erat demonstrandum, as that school swot might have said.

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RICHARD HARVEY March 2017

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E D'S RANT March 2017

Europe - can the centre hold?

The EU has more to worry about than just Donald Trump, says Michael Wilson. Populist nationalism is undermining the economy too

Population (mn)

GDP ($bn, 2015)

Current Account ($bn, 2016)

GDP Growth 2016 (%)

GDP Growth Forecast 2017 (%)

EU

510.3

14635

384

1.8

1.8

UK

65.4

2051

-138

2.0

2.0

339.9

10338

395

1.7

1.6

Germany

82.2

2933

297

1.8

1.6

France

66.8

2020

-27

1.2

1.4

Italy

60.7

1663

51

0.7

0.9

Spain

46.4

1221

24

3.2

2.2

Netherlands

17.0

625

57

2.0

1.7

324.1

18560

-480

1.6

2.3

Eurozone

USA

Source: OECD, European Commission (Feb 2017), Trading Economics

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E D'S RANT March 2017

Now don’t even get me started on the burning question of the day. If anybody’s expecting any definitive answers here about how the Brexit negotiations are going to impact on the fortunes of mainland Europe – or about how an avowedly protectionist Trump presidency will affect the whole can of worms - I can do little better than to direct you toward a mate of mine who sells crystal balls. If you buy a dozen, he says, there’s sure to be one in the box that gets it right.

As I write these words in February, Donald Trump has been celebrating his fourth week in office by doubling down on his intention to retreat from the international marketplace. His threats toward China and Mexico now seem to have morphed into a vaguer but wider plan to dump hefty import tariffs on just about anything made

by European factories in the emerging countries for sale into the United States.

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That’s cars, computers and white goods, for a start. Plus pharmaceuticals, services and electronics. But recently it’s been Trump’s determination to turn away US-accredited Muslim workers as well as Muslim refugees that has sent shock waves around the world – ironically, too, among multinational companies like Starbucks, Amazon and Facebook.

Ironically? Yes, you see, all these companies have recently been getting the wrong sort of publicity over here for quite some years now - mainly for using their European bases to dodge US (or indeed any) taxes.

So, if The Donald forces them all to repatriate their operations from Europe to the States - as he certainly wants to - are we likely to see all those Starbucksboycotting European liberals suddenly herding back into the shops to order their triple skinny

macchiatos, out of pure solidarity with the beast from Seattle?

Perfidious Frankfurt That question isn’t quite as fatuous as it probably sounds.

At the very least, it shows that Trump’s strategy is indeed disruptive to the perceived logic of the status quo, and in every way. And here’s more where that came from.

Most recently, Trump’s bizarre wish for a strong dollar has U-turned into a violent protest that Germany is engaging in a criminal undervaluation of the euro, China-style, so as to deliberately scupper the US trade balance. No, don’t even ask me how POTUS 45 imagines that Frankfurt alone could smash up the European currency, even if it wanted to. I don’t know, and I’m not sure that he does. But hey, this is the age of alternative truths, and some of them are likely to prove more durable than others.

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E D'S RANT March 2017

parliamentary seats than the prime minister. And who has said he’ll pull the country straight out of the EU. And who has been convicted of inciting racial hatred, and who wants to close the mosques.

What Trump’s volte-face tendency does do, though, is to highlight the quandary that Theresa May is in, as she tries to insist that the Brexit-meansBrexit approach will leave us safe in the dependable hands of our transatlantic ally. And that the Prez won’t change his mind again and slam the US door on us as soon as we’ve burned the European bridges.

Nexiteers, Frexiteers and all the rest But drat, like I said at the outset, I didn’t mean to get sucked into all that. Europe has other problems on its mind - the worst of which is that the same populist nationalism that sparked both Trump and Brexit is now set to endanger the self-image of EU institutions themselves.

The 15th March sees an election in the Netherlands in which a far right-winger, Geert Wilders, seems quite likely to get more

36

Europe has other problems on its mind - the worst of which is that the same populist nationalism that sparked both Trump and Brexit is now set to endanger the self-image of EU institutions themselves

The worry is not so much that Wilders will succeed, because the best he can hope for is to be leading a ragged coalition - but rather that it’ll give a platform for extreme nationalism that will have to be contained by other political parties.

And the economic consequences of a Dutch withdrawal? It’s extremely hard to imagine such

a trade-dependent country with such strong ties to Germany turning its back on the Single Market – which suggests to me, at least, that even the foaming nutcases have a stronger plan than Mrs May’s hard Brexit.

Please feel free to disagree.

Aux armes, citoyens France’s intentions of quitting the EU are often overstated as well.

Even though the far-right Marine Le Pen from the Front National is in with a very good shout against the conservative former prime minister François Fillon, it seems very unlikely that her Eurosceptic loathing of the EU will extend as far as a withdrawal. France does, after all, benefit mightily from agricultural subsidies, and its expertise at tweaking European trade and company laws is not something she’ll want to give up lightly.

But she does have a huge groundswell of popular support among a population that’s at least as Eurosceptic as our Brexiteers.

And she’s demanding that France should partially leave the Eurozone – apparently by running both the euro and the franc at the same time.

In theory, this would presumably liberate French financial institutions from the centralising fiscal edicts coming down from the European Central Bank in Frankfurt. But in practice, it would tax the finest financial

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E D'S RANT March 2017

brains to figure out how the two currencies should be correlated if they slipped against each other (which they presumably would?) And how to stop the international bond markets declaring a default if Le Pen tried to switch France's sovereign euro debt into debased franc instead?

Putting the brakes on Berlin And so to Germany, the backbone of the northern European economy and the object of President Trump’s latest invective. Germany’s 2016 record of 1.8% growth sounds better than the fact that its third-quarter year-on-year GDP improvement was just 0.8% - on paper at least, one of the weakest performances in the western EU, and a very long way behind Britain.

Two points stand out, however.

Firstly, that Britain’s secondhalf GDP growth was almost certainly boosted by one-off factors which economists are not expecting to survive the advent of higher prices in the UK – the result mainly of sterling’s 15% devaluation which our correspondents think will drive up UK prices before long.

And secondly, that Germany is allowed a little bit of slack. Its $300 billion current account balance accounts for three quarters of the Eurozone’s combined surplus. In cash terms it’s bigger than China’s. And, at 8.8% of GDP, it’s equivalent to 63% of America’s own yawning $475 billion current account deficit. Which is the main reason why Trump is shouting foul.

A lot will depend in the coming months on how the President

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acts on his conviction that Germany is playing dirty. The car manufacturers – BMW, VW Audi and Mercedes – are already under notice of huge import tariffs if they continue to export Latin American-built cars to the USA. But will Trump take it further? And what of Germany’s huge pharmaceuticals groups, who Trump has accused of blatant profiteering? And what if Germany’s food importers kick up about Trump’s intention to force exports of hormone-treated beef or GM food onto the most environment-savvy population in Europe? Will it descend quickly into trade sanctions?

That, of course, is only half of the worries on Angela Merkel’s mind as she contemplates the federal elections which must happen between late August

Britain’s second-half GDP growth was almost certainly boosted by one-off factors which economists are not expecting to survive the advent of higher prices in the UK and 22nd October at the latest.

On paper, at least, Mrs Merkel’s Christian Democrats and her Social Democrat coalition partners ought to be safe against the ominous alt-right Alternative für Deutschland, which wants Germany to stop mollycoddling spendthrift southerners and split the Euro club so as to form a northern currency league.

But, after the shocks of the last twelve months, nobody is taking anything for granted.

Merkel’s weakest front is on her (debatably sensible) decision to open up Germany’s borders to nearly two million

migrants during the last two years, most of them from Syria and other Middle Eastern countries. Coming at a time when unemployment is at 6%, when exports to the UK are facing choppy waters, and when business confidence indicators are suddenly slipping back from a three-year high, there is much here to be worried about.

Bancarotta But it doesn’t end there, unfortunately. Fearful eyes have been cast at Italy, whose government botched and lost a key referendum last December, and which has somehow managed to put Eurosceptics into a commanding position.

The problem is not so much that Italy is unstable – it has muddled through quite successfully for decades – but that worries elsewhere about the EU may focus on its terrible growth rate (0.9% in 2016) and its €1.5 trillion government debt pile which is growing a lot faster than that. And which is 130% of GDP….

At the same time, analysts point out, Italy is struggling to implement a rescue and recapitalisation package for its overstretched banking system.

Only last December, the state had to shovel a quick €20bn rescue package into Monte dei Paschi di Siena, the world’s oldest bank, after the Qatari sovereign fund refused to play along. Had it not done so, it would very possibly have started a run whose effects would have risked ‘doing a Cyprus’. And in that event it wouldn’t take very much to go wrong before Italian sovereign debt was also downgraded.

Which, considering that S&P already rates it at a miserable BBB and negative and Moody’s at Baa2 negative, is uncomfortably close to the floor.

And that, with anti-EU sentiment growing fast, wouldn’t be good at all.

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CAREER OPPORTUNITIES Position: Financial Planner Location: - Plymouth, Devon Salary: - £60,000 An excellent opportunity has arisen for a professional Financial Planner to join a prestigious Accountancy and Financial Planning Practice.

The role will include servicing existing clients of the practice and also driving business development via internal business teams and external professional connections.

The successful candidate must possess the knowledge and skill to service the financial planning needs of a diverse range of clients.

Position: Paraplanner Location: - Chester Salary: - £40,000 A well-established wealth management practice in Chester requires a career-committed research professional who is dedicated to enhancing their knowledge, experience and skills.

Ideally, you will have previous experience as a Paraplanner within a fast-paced environment and have extensive product knowledge in the areas of pensions, investments and protection.

The successful candidate will benefit from full support and training within a welcoming office environment.

Position: Paraplanner Location: - Leicester Salary: - £40,000 This award winning independent financial planning practice and is looking to take on an experienced paraplanner to join their technical team.

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Position: Paraplanner Location: - Oldbury, West Midlands Salary: - £35,000 A well established and reputable Wealth Management practice seeks a highly organised and career driven, experienced paraplanner who has advanced technical knowledge on pensions, investments and protection and wants to work in a friendly and great atmospheric environment.

The successful candidate will be given full support and be working in a motivating and a satisfying environment.

Position: Paraplanner Location: - London Salary: - £40,000 Are you an experienced paraplanner looking for change? If so – and ideally you are Diploma qualified - this is a great position within a highly reputable IFA firm. You will be rewarded with a healthy salary and additional benefits too.

This would suit a paraplanner looking for a more senior role or an existing senior paraplanner looking for a new environment.

Either way, you will be a key part and a valued member of the team.

Position: Paraplanner Location: - Blackburn Salary: - £30,000 A successful and reputable firm of Chartered Accountants is looking for a hardworking and dedicated paraplanner. You will be part of a high-quality wealth management team assisting in the running of the office. The position would suit an experienced IFA administrator looking to progress into a paraplanner position or an experienced paraplanner looking to work for a growing and successful company.

Position: Trainee Paraplanner Location: - Fareham Salary: - £23,000 Ideally you will have experience of working within an IFA firm and have a natural interest in progressing to become a paraplanner.

You will be responsible for assisting a team of experienced IFAs within the company whilst progressing technically yourself and working towards the level 4 diploma.

Position: Financial Adviser Location: - Manchester Salary: - £50,000 A highly reputable Chartered Financial Planning firm has created the opportunity for a qualified adviser to join the successful team and become a key member and contributor to the influential decisions within the business.

You will be dealing with a mix of clients including UHNW, so this will be an extremely enjoyable role.

ACQUISITION AND SALES

O F I FA BUSINESSES Retirement?

Time for a change?

There are countless reasons to dispose of an IFA business, just as there are countless reasons to get hold of one.

W E A RE A SPECIA LIST F I NANC IAL S A L E S , CO N S U LTA N CY A N D BR O KE R AGE B US I N ES S .

Gunner & Co.’s mission is to work directly with you, whether you are looking to realise the capital in your business, or you are looking for growth through a merger or acquisition.

We consider every business to be unique, and therefore finding the right solution for you starts with a thorough understanding of your business operations and your wish list.

Only from here can we make valuable introductions which align to both party’s needs.

If you would like to discuss options to sell, exit or retire, or acquire IFA businesses, please get in touch for a confidential discussion.

louise.jeffreys@gunnerandco.com

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