For today’s discerning financial and investment professional
DOG DAYS FOR THE VOTELESS BUSINESS FRATERNITY?
June 2017
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COM M E NT
ANALYSIS
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
CONTE NTS June 2017
CONTRI BUTORS
5 Editor's Welcome
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CAREER OPPORTUNITIES Brian Tora
News
an Associate with investment managers J M Finn & Co.
14 Richard Harvey a distinguished independent PR and media consultant.
Better Business — How to become a recruitment master
18 Six steps to getting more comfortable when asking for referrals
Neil Martin has been covering the global financial markets for over 20 years.
22 Adviser Spotlight - Anthony Villis
Brett Davidson FP Advance
26 Success through acquisition – a case study approach Michael Wilson Editor-in-Chief editor ifamagazine.com
30 Equities – an adviser perspective on what’s hot and what’s not
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Sue Whitbread Editor sue.whitbread
ifamagazine.com
Alex Sullivan Publishing Director alex.sullivan ifamagazine.com
Where next for equities and bonds?
38 First specialist LGBTI wealth management service
40 No pain, no gain
42 May’s Best Friend? IFA Magazine is published by IFA Magazine Publications Ltd, The Tobacco Factory, Loft 3, Bristol BS3 1TF Tel: +44 (0) 1179 089686 © 2017. 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
48 Career opportunities
FOR PROFESSIONAL CLIENTS ONLY.
No crystal ball required. BNY Mellon’s fixed income funds, managed by Insight: a scientific investment approach to help you face an unpredictable world. Insight has delivered precision-engineered credit strategies for more than 10 years. With £523bn under management and 100 fixed income specialists,1 Insight is one of the three largest fixed income managers in the UK.2
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Source Insight as at 31 December 2016. 2Source: eVestment AUM as at end of September 2016.
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The value of investments can fall. Investors may not get back the amount invested. For a full list of risks applicable to these funds, please refer to the Prospectus or other offering documents. Before subscribing, investors should read the most recent Prospectus and KIID for each fund in which they want to invest. Go to www.bnymellonim.com. Investments should not be regarded as short-term and should normally be held for at least five years. These Funds are sub-funds of BNY Mellon Global Funds, plc, an open-ended investment company with variable capital (ICVC), with segregated liability between sub-funds. Incorporated with limited liability under the laws of Ireland and authorised by the Central Bank of Ireland as a UCITS Fund. The Management Company is BNY Mellon Global Management Limited (BNY MGM), approved and regulated by the Central Bank of Ireland. Registered address: 33 Sir John Rogerson’s Quay, Dublin 2, Ireland. These Funds are sub-funds of BNY Mellon Investment Funds, an open-ended investment company with variable capital (ICVC) with limited liability between sub-funds. Incorporated in England and Wales: registered number IC27. The Authorised Corporate Director (ACD) is BNY Mellon Fund Managers Limited (BNY MFM), incorporated in England and Wales: No. 1998251. Registered address: BNY Mellon Centre, 160 Queen Victoria Street, London EC4V 4LA. Authorised and regulated by the Financial Conduct Authority. Insight investment’s assets under management are represented by the value of cash securities and other economic exposure managed for clients. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation and its subsidiaries. Issued in UK by BNY Mellon Investment Management EMEA Limited, BNY Mellon Centre, 160 Queen Victoria Street, London EC4V 4LA. Registered in England No. 1118580. Authorised and regulated by the Financial Conduct Authority. AB00058-002. EXP 30 Aug 2017. T5290 02/17
E D’S WE LCOM E June 2017
Wiser Tuesday morning, and the sun shining brightly. Off, then, with a spring in my step to my local Citizens’ Advice Bureau for my free government appointment with my Pension Wise adviser. Yes, I know I ought to have all the right answers readily under my own belt, but there’s no better way to find out what the rest of the world is experiencing than to try it out for yourself. Well, I was in for a few surprises. For the avoidance of doubt, you’re not getting rid of me just yet. My pension plans are only one part of the financial armoury with which I intend to greet the next quarter of a century, and my purpose at the CAB was to learn how the flexible drawdown provisions could be harnessed to best effect. And how drawdown shaped up against other options, such as selling down other types of assets while my tax-sheltered pension assets continued to accrue. Sign of the times I was in the right place. Gone were the bun-haired, wellmeaning small-town librarians who used to staff the CAB back in the days of yore, and in their place was a former divisional head of one of the country’s biggest fund management outfits. No, he didn’t tell me that until after the interview, when I gently wrung it out of him, so fair’s fair, his impartiality was total throughout. I, for my part, had
declared my identity right at the beginning, because I’m not the mystery shopper type. I’d been asked to bring in all the details of my (nine) pension plans, and to have some answers ready about my lifestyle and expenditures. Right away, he locked onto a rather good (8%plus) guaranteed annuity that still attached to a pre-1986 withprofits policy, and was well worth keeping, he said. Lucky me. His knowledge of the 25% tax free drawdown provision was helpful – I hadn’t known, for instance, that I could take the tax free lump in one go and then pay full marginal rate on any subsequent drawdowns if I arranged things correctly. And any queries I had about the obligation to transfer all my nine policies onto a drawdown platform were quickly answered. (Answer, apparently, no, although in my particular situation I could probably get a bigger overall tax exemption on a lump sum withdrawal if I did.)
terrified of an IFA fee structure that they fear could devour a tenth of their money. And if the advisory sector had one major hurdle to overcome, he said, it was achieving more public clarity about fees. Most of these people are seeking complete simplicity, he said, which is why consolidation is high on their agendas. They’re starting to understand that the annuity system is now a poor bet, but the reintroduction of equity risk only leaves them needing ongoing advice that didn’t used to apply when people could still get a 6.5% return for life, and no questions asked. I pass these thoughts on for what they’re worth. Personally, I was impressed. Michael Wilson, Editor-inChief, IFA Magazine
More simplicity And so on, and so on. As the CAB man explained, most of his daily work is for ‘ordinary’ people with pension pots of well below £50,000 who are
Starting this Month: Equities Special Coverage
Ben Willis, Head of Research at Whitechurch Securities, takes an internationalist view of the opportunities around Brexit, and beyond.
This month’s IFA Magazine sees the start of an exciting new feature in which our expert contributors will be writing a series of regular reports on what’s hot and what’s not in the world of UK and global equities. Essential reading!
Meanwhile Brian Tora, our resident market guru, takes an unsentimental look at the measures that we use to compare value. Does the yield gap mean as much as it used to? And where do current p/e levels point toward?
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Please do write in and tell us what you’d like us to cover in this new feature. We’ll look forward to hearing from you.
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N EWS June 2017
Advisers and Planners invited to attend inaugural NextGen Planners Conference If you were interested by our Adviser Spotlight interview with Adam Carolan of NextGen Planners in last month’s edition of IFA Magazine, you might be interested in attending the very first NextGen Planners Conference later this year. On 30 November in Manchester, the group are holding the first conference in the UK to discuss the future of financial planning from a Next Generation perspective. The event, which will welcome around 150 delegates from a variety of backgrounds, will look at the key issues that financial planners will face over the next 10 to15 years. Already booked
PLAYING IT SAFE HAS NEVER BEEN SO EXCITING.
for the programme are some high profile speakers such as Jason Butler, Rory Percival and Mark Polson from within the profession. In addition to this, they have sought expertise from outside the profession around topics like succession planning and buying into firms, as well as featuring some exciting keynote speakers focused on the content, technology and creative sides of the financial advice business. It is an event where like-minded professionals, excited about their future, can get together and spend a day learning from some excellent speakers and meeting with their peers.
Adam Carolan, co-founder of NextGen Planners comments: "We saw the demand for NextGen Planners and really wanted to meet our members and the people that will drive this profession forward together over the next few years. We want positive contributors from all backgrounds to attend this event and share wisdom as we are all about learning" You can find out more details about the conference on their website www.nextgenplanners. co.uk/nextgen-conference/ Tickets are currently selling fast at £175 plus VAT or £100 plus VAT if you are a NextGen Planners member.
Top decile since launch
LET’S TALK HOW. CUMULATIVE PERFORMANCE (%) 1 Year 3 Years 5 Years Fidelity Global Dividend Fund
22.3
54.0
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30.4
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IA Global Equity Income
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76.6
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 30.04.2017. 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 will affect future performance. This fund invests in overseas markets and so the value of investments
N EWS June 2017
Confidence tweaks upwards - for now...
House prices wobble
Just when you thought there was no good business news to be found in the run-up to the June election, the ICAEW accountancy professional body has published a report claiming that confidence is in fact surging. The UK Confidence Monitor (BCM) or rather the BCM Confidence Index, shows a radical turn-around from -8.7 in the first quarter of 2017 to an apparent 6.7 in the second quarter.
UK house prices suffered their first two-month fall in nearly five years during March and April, the Nationwide Building Society reported. The average price of a home dropped by 0.4% during Spril, it said, on top of a 0.3% decline in March, bringing the annualised price growth down to just 2.6% - a level that hadn’t been seen since June 2013. The Nationwide is expecting this year’s price gain to run out at 2%, up from 4.5% in 2016.
What’s more, the report says that confidence has moved from negative to positive in nine of the eleven regions studied, and furthermore that sentiment is rising across all sizes and types of companies. Yet the uptrend was significantly more marked in those sectors
that were well away from consumers - sectors such as manufacturing, utilities, technology and the finance sector. Both the retail and the wholesale sectors were still in negative territory, the report said, because of the expectation that pre-Brexit costs and disadvantages would soon push inflation rates up for consumer goods and services. “It’s encouraging to see that confidence is starting to rise after a sustained period of decline,” said Stephen Ibbotson, ICAEW’s business director said, “Yet against this improved sentiment, businesses are not investing in staff and wages and may well be waiting to see what happens in the political arena, particularly in relation to how EU negotiations play out.”
Nationwide’s chief economist Robert Gardner said that the price fall, albeit slight, probably reflected the weakening general backdrop for consumers’ household finances, which are feeling the pressure from rising inflation, low real wage growth and a growth of personal consumer debt.
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
can be affected by changes in currency exchange rates. The fund may also use financial derivative instruments for investment purposes, which may expose the fund to a higher degree of risk and can cause investments to experience larger than average price fluctuations. 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. UKM0517/19680/SSO/1117
N EWS June 2017
CISI survey reveals consumer lack of trust and confusion in accessing money help a financial or wealth manager, which of these would you do?” the responses were: • 30% were not sure what to do • 28% would seek confirmation from another client • 25% would seek confirmation from the Regulator • 25% would seek confirmation of qualifications from the Awarding body 41% of the UK public say they would trust a qualified financial adviser when seeking financial advice but only 7% would trust their bank for advice, says a Chartered Institute for Securities & Investment (CISI) survey. The survey, commissioned by the CISI and undertaken by YouGov, asked the question: “In seeking financial advice, who would you trust more?” Of those who responded: • 41% said “a qualified financial adviser” • 26% said “no-one else but trust yourself ” • 22% said “would trust a good friend or relative” • 7% said they would trust their bank • 3% other • 1% said they would trust the media In addition, when asked “Before seeking financial advice from
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This question allowed participants to choose a combination of responses. The findings were released to coincide with the CISI’s annual Financial Planning Week consumer awareness campaign, which took place in May. Throughout the week, more than 80 firms of advisers and planners got involved, offering free one hour financial planning sessions to consumers, to help them work on their life goals and plan how they can achieve them. Here at IFA Magazine, we think it’s great to see the profession working together to engage directly with the public in this way. It shows people the value of professional financial planning advice in the best possible way – by looking at their own situation and highlighting the thought processes and actions that they can take to improve things. We hope it leads to more and more people engaging with their finances and taking such steps in future.
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: www.ifamagazine.com/page/ about-us/subscribe/
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N EWS June 2017
Succession Group has acquired two more firms brought capital to the financial services sector, giving business owners the opportunity to be rewarded and recognised for the services they provide.
Succession Group has acquired two more firms from its affiliated members, Paul Jones Financial Services and Equity Invest, for a total consideration of £4m.
Wimbledon-based Equity Invest, which provides a wealth planning service, was named Best Boutique Ethical Investments Firm in 2016.
The latest deals take the number of businesses acquired by the Group in 2017 so far to four. Succession plans to create the UK’s largest independent wealth management business,
Founder of Equity Invest Richard Hunter, said: “We have worked with Succession since 2015, supported throughout the transition process by a disciplined team to improve the sustainability and profitability of our business. Succession is still the only consolidator to commit to increasing the value of a business before and after acquisition.
Paul Jones Financial Services, which has offices in Southampton and the Isle of Wight, first began working with Succession in 2015. Managing Director of Paul Jones Financial Services Peter Viney said: “Succession has a strong management team and its continued focus, expertise and professionalism were a significant factor in our decision to sell. “As part of Succession Group, we will continue to focus on a risk-based investment approach which, along with cashflow forecasting, helps clients to gain financial vision and understand how we can best meet their personal objectives. Maintaining client relationships is what we do best. With 40 years of financial services experience, we had reached a point where the regulatory and compliance onus on small businesses was increasingly detracting from our ability to serve clients well.”
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“Our focus on ethical investing adds a new dimension for clients, and we are excited about contributing our ethical investment experiences within a large and successful national business. Like Succession, Equity Invest was founded on a clientcentric ethic, and our choice to be acquired by Succession was significantly influenced by the wealth planning proposition and commitment to continued innovation.”
“Succession Group is preparing for further substantial growth in 2017. With the support of our shareholders our already acquired businesses, and the excellence of our staff, we continue to innovate our already-compelling proposition that combines our investment platform, distinctive investment solutions and wealth planning advice. At the same time, Succession Group has accelerated plans to acquire and integrate businesses from our affiliated membership, delivering long term security for clients, succession planning for business owners and career development opportunities for planners and client servicing teams. “Succession continues to attract and acquire profitable, professional companies who, together, combine to deliver underlying client, employee and owner value.”
Succession’s Group Corporate Director Paul Morrish (pictured) said: “Succession has a targeted approach to acquisition, working with strong financial services businesses that share our commitment to high-quality wealth planning. Our disciplined approach has
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N EWS June 2017
Keep on running – Nick Where do Cann proves that there you read really is life after stroke your IFA
Magazine?
Our congratulations go the inspirational Nick Cann, former Chief Executive of the Institute of Financial Planning (IFP), as he continues his excellent work raising money for The Stroke Association. In May, Nick completed a 5k run to raise more than £4,000 to help stroke sufferers in Wales. Never one to shirk a challenge, those who know Nick will be well aware that running isn’t quite his “thing” and so for him to even attempt this was a major step. Having suffered a severe stroke himself back in 2013, he subsequently developed aphasia and dyspraxia which he has worked hard to overcome. As part of his recovery process, Nick and his wife Jo founded Project Phoenix. Through it, they aim to provide specific support for stroke survivors and their carers in Monmouthshire, which is where the Cann family
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have lived for many years. This includes two “stroke cafes” which bring those affected by strokes together in their local community. Because of Nick’s own experiences, the project also focuses on speech therapy, as many stroke survivors are left with communication needs. As well as running, Nick has continued to challenge himself in all sorts of ways including the mammoth task of cycling from Cardiff to Tenby, in order to raise funds. Last year, his efforts were formerly recognised as he won the Stroke Association’s 2016 Fund Raiser of the Year award. To date, Nick and his family have raised in excess of £60,000 for Project Phoenix and the Stroke Association.
We know that IFA Magazine readers get about a bit, but your editorial team were certainly smiling to see this picture from Charles Chami, Director at Glamis IFA, which was posted on social networking site Twitter. It shows Charles reading his copy of the magazine high-up in the Alps during a snowboarding holiday. It made us wonder whether other readers have chosen exotic or unusual locations to read their copy of IFA Magazine? Email your answers, and hopefully pictures (and nothing too inappropriate please!) to Neil.Martin@ IFAMagazine.com
Hats off to you Nick and Jo! It is a fantastic achievement and there will, no doubt, be many more challenges and achievements in the years to come.
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SPONSORE D FEATU RE
Selling, Not Selling Out Planning the sale of your business without compromising your clients The business of buying businesses is an interesting one, especially within the inherently risky IFA marketplace. The path to sale isn’t always clear, especially when it comes to the ever-grey area of merging two businesses, as the human element of the deal is often ignored. Selling any business is a tough decision to make, it is lifechanging and it must be right. Business owners must consider how their clients will be looked after as well as how their people and shareholders will be recognised following a sale, as none of these groups should be disadvantaged as part of the acquisition process. Fairstone, the UK’s largest Chartered financial planning firm, offers support to IFA business principals. Fairstone helps business owners to plan for the future, creating a real and clear exit strategy that includes a succession and sustainability plan to ensure they achieve the maximum value for their business.
Lee Hartley, CEO Fairstone Group
If your strategy is still to be decided or even constructed, we can help. If your ideal scenario is that your long-term clients can continue to receive the service they expect, your staff can get access to on-going opportunities and your business can achieve a market leading valuation, it’s time to talk to Fairstone.
Curious about SELLING your IFA firm? Don’t want to compromise the future of your business or your valued clients and staff?
MAYBE THIS IS OF INTEREST?
MOST IMPORTANTLY SELL AND STAY with the business
SECURE A PREMIUM VALUATION for your firm
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ENSURE YOUR CLIENTS ARE FULLY PROTECTED
GUARANTEE NO INCREASE TO CLIENT FEE CHARGING
CONTINUE TO EARN AN INCOME from the business
AFTER THE SALE
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to enable you to structure the transaction in order to
RETAIN KEY ADVISERS AND STAKEHOLDERS
PREVENT SHOE-HORNING OF PRODUCTS, FUNDS OR PLATFORMS
Interested in what the UK’s largest Chartered Financial Planning firm could do for your business? To arrange a private discussion email sell@fairstonegroup.co.uk
Complete your secure online profile at www.fairstonegroup.co.uk/sell
CALL US ON 0191 519 6249
SPONSORE D FEATU RE June 2017
Credit where credit is due Leigh Himsworth, Portfolio Manager, Fidelity U K Opportunities Fund
The key difference today versus where we have been lingering for a number of years post the 2008 downturn is that the monetary system has apparently begun to work properly again for the ‘real’ economy. The rescue of the banking system is now becoming a distant memory to the point where the UK government now only holds a sub 2% stake in Lloyds and the exit of other positions is underway. The problem in the first instance was that easy monetary policy and quantitative easing (QE) was designed to ensure that banking
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system had enough liquidity to cope with the exceptional stress in the system post-Lehman. It also intended to give the banks themselves time to restructure and rebuild their balance sheets and capital base. In no way were they prepared to take on any ‘risky’ lending in such an environment - so we had little or no multiplier effect and thus a severe lack of underlying demand in the economy.
there will be many out there that assume this is the norm and that the current GDP and inflation numbers are unusual. However, any longer-term economic history of the UK or indeed the US and general economic theory will show this is not the case and that the more recent situation is very much the unusual period.
This situation looks to have now largely passed and the banks have begun to lend in earnest again; resulting in consumer credit growth and the velocity of money beginning to grow and with it, the Money Supply. This point is also reflected in the consumer credit numbers. This effectively means that there was a huge retrenchment by the consumer, even though interest rates were at historic lows.
So if we have returned to a more ‘normal’ banking and monetary system, what should we expect and how does this impact portfolio positioning? Equity market action in the early part of this calendar year has been hesitant, partly due to the shadow of the political risks of Trump, Le Pen and Brexit, with more defensive areas performing relatively well. More recently though these have begun to give way to the reality of results and economic prints and investors, having accepted the political
Because we have experienced such difficult circumstances for such a long period of time,
Positioning for a more “normal” backdrop
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SPONSORE D FEATU RE June 2017
risks, are starting to re-focus on fundamentals. UK equity market fundamentals remain appealing with strong earnings growth and an improving yield cover. The improving outlook for earnings may suggest that growth stocks (and small and mid-caps more generally) pick up the baton once more as yield may become less important. I would suggest however that a balanced portfolio should always be the correct approach. How long this recovery lasts will depend on a number of factors. Firstly, how long it is before inflationary pressure bites into consumer appetite, though it is more usually the spectre of unemployment that bites harder. As I have stated many times, it is expectations that count more than actual numbers and at the moment it is inflation expectations that are driving expenditure patterns, and wage growth is good. We are not yet seeing consumer inflation outpace wage inflation growth, though in my opinion, it will come.
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As an example of the thought process, if we look at rising food price inflation, it is not simply a question of the price of a consumers’ basket of goods
UK equity market fundamentals remain appealing with strong earnings growth and an improving yield cover
becoming more expensive, there are many other issues to consider. These include consumers reacting by altering their spending patterns firstly within the supermarket, then outside, perhaps eating-in more.
will be important, cutting costs at first, working with suppliers on costs, adjusting product lines, the mix of product will change, wages may come under pressure, as may employment. Transport costs and rents may also rise to the point where the companies may re-adjust investment patterns, perhaps investing in great automation. This is only a snapshot of the thought processes we must go through with only a cursory glance at a small area of the investment horizon - a pickup in inflation therefore has significant implications for the asset classes we wish to place emphasis on, growth vs income, the industries we may prefer and then individual stock selection there is much to review!
Spending patterns are likely to change and the reaction from the supermarkets themselves
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BETTE R BUSI N ESS June 2017
Better Business — How to become a recruitment master Successful financial planning businesses have one thing in common – they all have great people working together as a team. Brett Davidson of FP Advance provides practical tips on how you can take control of the recruitment process and reminds us why it should be a number one priority
The more I reflect on what allows my clients to really fly, the more I come back to just one thing: people. If you want to build a great business then you have to have the right team in place.
The right person in the right role is worth 400% more to you than an OK person in the role
Your version of success might be to work 9 to 5, four days per week and earn a reasonable income, or you might have a much larger commercial ambition. In either case, if any one of your team members can’t perform their role to the standards you require, there will be follow-on effects around the company. It will mean that issues will eventually end up back at your desk to be resolved. Hiring right really does matter. Mastering recruitment Most adviser-owners I know don’t exactly love the task of recruiting staff. Simply acknowledging that this is not your cup of tea can help you get your first key support person on board; an HR consultant. If assembling a great team is vital, and it is, but you don’t have a passion for recruitment, then get someone on your team who does. The good news is that HR consultants are relatively inexpensive and the good ones are usually quite practical in the advice and support they provide.
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BETTE R BUSI N ESS June 2017
Where can we learn from other businesses that also face this hiring challenge? In modern business, hypergrowth tech companies provide a good starting point. They are looking for talent, and lots of it, quickly. How do they do it? Jeff Holden, currently Chief Product Officer at Uber, has held roles with three fast-growing companies; Amazon, Groupon and Uber. In a conversation with Peter Diamandis (founder of the X-Prize), he described four key lessons for hiring the best people: 1. A-players hire A-players and B-players hire C-players The key point here is that you have to be ruthless in hiring the best people you can possibly find. Don’t lower your standards. As Peter Diamandis commented, “If you lower the bar on the quality of people you let in, they will have a lower bar for the quality of people they hire. The spiral will continue to cascade downward until you’re left with, well… a mediocre company.” “Measure twice, cut once” is a good mantra to hold when
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recruiting. I understand the pressure sometimes to just get someone on board. However, taking that approach just means you’ll have to go and do your recruiting right in about 6-12 months’ time when the person you’ve just hired doesn’t work
Financial Planning done right is a life changing profession. You want people who can see and understand that working on your team
out. In that scenario you’ll have just wasted another year of your life. Don’t do it. 2. Always gauge the passion and interest of a candidate.
“Why do you want to work for this company?” “It’s unbelievable how many people have a terrible answer to that question,” Jeff said, “The generic answer is, ‘Well, you guys are doing really well…’.” The aim is to find people and answers that fit with your core values. Financial Planning done right is a life changing profession. You want people who can see and understand that working on your team. 3. Be an owner, not a renter – hire patriots, not mercenaries. Jeff has a quote that he referenced: “Wars are won by patriots, not mercenaries.” You’re looking for people that buy into what you are doing for clients and what you are trying to build as a business, not people
Clearly, it’s important that team members are enthused about working in your organisation. There is a simple way to do this, Jeff explains, simply ask them
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BETTE R BUSI N ESS June 2017
who were secured based on the highest offer.
Some pitfalls to avoid when hiring your team
making coffee and occasionally vacuuming the office.”
People who are just in it for the money can be tempted to leave for a better offer, or they just don’t put it all-in when the going gets tough. Stay away from them.
There are a few mistakes I see firms making when it comes to good hiring practises. Do any of these apply to you?
If the role is not full time, then hire someone part time. Ask for what you want when you recruit. Don’t flex to match the needs of whoever might be presenting. Once you’ve got the right person, by all means flex to make your mutual working lives enjoyable and productive. But in the first instance hold firm on what you require.
That doesn't mean you should hire cheap. The best people expect to be paid more than their average contemporaries; as they should. However, they also need to show passion for the company and the role as well. 4. Make sure you’re working with people who ‘make you feel dumb’. Peter says, “Make sure you are working with bright, intelligent people who are constantly pushing you to learn.” Not only can smart people fulfil the role you need them to do, but they can help you to be better. This is the type of inspiring challenge that can see you rediscover your enthusiasm for your own role, your business and your life. Don’t underestimate it. I know a lot of firms that have had success in hiring young graduates. They keep sharing with me how scary smart these folks are, and you can hear the excitement in the owner’s voice as they do so.
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a.) They are not clear on the specific role they are trying to fill.
I know a lot of firms that have had success in hiring young graduates. They keep sharing with me how scary smart these folks are
Often this is because they are not thinking narrowly enough. If you need an administrator, get specific about what type of admin tasks they are going to perform. Is it complex pension work, investment work (with which wrap platforms?), trust work, wills, life insurance work etc. What specific job do you need doing? Don’t think “I’ll get an administrator who can do some paraplanning work and maybe handle reception as well, whilst
b.) They don’t write a great job description. They don’t do this because they haven’t done the think work in the point above. If you don’t know exactly what you are after it’s impossible to write a concise and specific job spec, which makes it almost impossible to end up with the right A-player on your team. Don’t skip this step. Get help from your HR consultant if you need it. c.) They don’t hire with their core values at the forefront of their mind. Someone with the wrong values just won’t work, no matter how skilled they are. What are your core values? Usually they’ve been captured in your business plan.
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BETTE R BUSI N ESS June 2017
Make sure you are interviewing with these in mind. d.) They shortcut their own (often limited) recruitment process in a rush to fill a role. As I mentioned earlier, “measure twice, cut once.” Create a robust process and then follow it to the letter. If you need to wait six or nine months to get the right person, my advice is to wait. The right person in the right role is worth 400% more to you than an ok person in the role. Wait to get the right team member and watch your productivity and your quality of life go through the roof when
you do. Anyone who has hired poorly in the past will attest to the wisdom of this approach. e.) They think they can’t find the quality of people they need in their area. I know that in some parts of the country recruitment can feel challenging. However, I hear this complaint from people across the UK. If they are outside of a big city they tell me there’s no one who is any good locally, and if they are in a big city they say that other bigger firms take all the talent. My advice is to get better at finding the people you need. This is a skill just like anything else. Look wider or non-traditionally if you need to. Hire a virtual team
member if that allows you access to someone with the skills you need. There are amazing people lurking in the online world that you can often rent by the hour. At FP Advance our whole team is virtual. We spend time on helping our team understand our mission and our business (just like you do with in-house employees), and we believe this helps make them patriots. Right now we have the best team in place that we’ve ever had. Take a look at the lessons above and see if you can apply them to your business. I know it will make a massive difference. Assembling the right team is the number one issue for all businesses, large or small.
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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GETTI NG RE FE RRALS June 2017
Six steps to getting more comfortable when asking for referrals One of the most effective ways in which financial planners grow their businesses is by getting referrals from satisfied clients. Yet why is it that so many professionals still feel uncomfortable asking for them? Matt Anderson, of The Referrals Academy, starts a three-part series in which he gives practical help and tips so you can improve your success in this key area
The solution to being more comfortable asking for referrals is this: Stop associating pain with asking and start associating pain with not asking and increasingly associate more and more pleasure with asking. To do this, it’s time to consider these six steps:
If you are like most advisers or planners, you don’t relish the idea of asking people to recommend you. But how does that approach serve you? And, assuming you believe that your work helps people, how does your silence serve others? Sometimes it’s as if we are perversely proud of being bashful and, oh, underachieving. Most people feel rather uncomfortable asking for what they want. This is not for you.
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1. What are your concerns about asking? Stop and think through your answer to this question. You must know your answer to this first. For some people the discomfort they have about asking for referrals comes from not knowing what to say or when to ask. Maybe you’ve tried asking clients in the past by saying “if you can think of anyone else that might benefit from my services, please ask them to give me a call’. Since saying this almost never works, you probably gave up.
These are competence issues and these will be addressed in articles two and three of this series in subsequent issues of IFA Magazine. Whilst they are not the focus of this article, please read on because points 3, 5 and 6 relate to everyone and sometimes all of this topic does apply to you; you just weren’t aware of it until now. The majority of people have deeper concerns about asking for referrals that are rooted in fear. The most common ones are a fear of being pushy, looking needy, sounding salesy, spoiling the relationship, and being rejected. Other people set the bar too high before thinking they have earned the right to ask, or they convince themselves of things that are beyond their control (‘no time’, ‘clients too busy’) or feel they’re not good enough yet at what they do. You must know your answer to this answer. You must know what
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the enemy looks like so you can start shooting at it.
never going to solicit for business that way again).”
If you are not asking for referrals, you are letting fear and/or ignorance control you.
Last week, I spoke to someone who joined a networking group when he was new to being an adviser, new to the community (i.e. knew nobody), was new to networking, and was expected to have referrals every week for other people! That weekly public humiliation from a room full of people - on top of all the other pressures he was experiencing - proved extremely distressing for him. Since then, the idea of asking for referrals has always made him uncomfortable.
2. Pinpoint any really painful experiences around referrals This is relevant for about one person in ten. Maybe you started your sales career at a company that was very aggressive about demanding referrals and it left such a bad taste in your mouth that, from then on, in your mind you associated asking for referrals as something painful. Or you emotionally overreacted and unwittingly said to yourself: “I never want to be seen to be like those obnoxious salespeople ever again (which means I am
It is crucial to identify where any negative association comes from. It’s rather like having had an emotionally painful dating experience and then overreacted by saying “I’m never going to do
that ever again!” Not exactly our finest moment in creating life’s success recipe, eh? 3. Really soak up the pain that not asking is causing you Answer these questions; think about them and take time to write down all your answers. a)What will it cost me if I don’t get far better at generating high quality referrals? Don’t skimp on this. Write as much as you can. The goal is to use pain as your friend so you get leverage on yourself to take a lot of action. You actually want to feel so much pain that you can no longer tolerate your situation. Getting powerful leverage matters so much because, as Tony
If you are like most advisers or planners, you don’t relish the idea of asking people to recommend you.
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GETTI NG RE FE RRALS
Robbins argues, “we will all do more to avoid pain than to gain pleasure.” In other words, we are more likely to stay put with our current, mediocre present than to take the necessary risks to live the life we really want – unless we get more leverage on ourselves. b)How do my responses in 3a) make me feel? This one is arguably even more important. Your emotions are what drive you. 4. Be clear about why people should refer you List out 20 reasons why people should recommend you. You want to focus your thinking on reasons to ask for referrals rather than on old thinking of avoiding it. Afterwards, ask yourself what you have learned. This has been a turning point for some of my past clients who have gone on to achieve fabulous increases in the number of referrals they get. One concluded: “if not me, then who?” and gradually started to ask more and more. That was six years ago and his business has grown every year since. Another adviser compiled his list and realised that “some of my clients get thanked for introducing me.” He went on to have his best year ever and he’s surpassing that again this year. Pick out the most compelling reason and then keep this highly visible. Odd as it sounds, you need to rewire your thinking
to focus on this empowering reason to ask. 5. List out why getting far more quality referrals is a ‘must have’ for you Make a list of all the pleasure you will obtain from getting more referrals, more clients and therefore bringing in more business. Caution: It’s human nature to avoid even a little ‘pain’ for its short-term gain even if it means a lot of longterm pain. So you will need to amass an inspiring list of reasons to ask which emotionally far outweigh the pain that so far has held you back. Otherwise you
Start to think about asking for referrals as an enormously rewarding activity and ultimately as fun
probably won’t push through the early discomfort. Start to think about asking for referrals as an enormously rewarding activity and ultimately as fun. 6. Practise, detach from expecting immediate results, and take inspired action
need better wording and a referral system, you too will only see good results if are willing to practise your referral conversation, stumble through it at first, and do it enough times until it sounds like you’re having a real conversation. It is possible to get great results quickly but expecting this can set you up for disappointment. There are too many variables: it can depend on your competence, how confidently you ask, how specific you are with what you ask for, whether you help your referral source with how to refer you, how enthusiastic your referral source is about you, how strong your relationship is with your referral source and how close and respected the referral source is to the prospect. Focus on what you can control and keep getting better in all areas. By taking inspired action, I mean focus first on asking your best relationships for introductions. Remember: associate asking with great pleasure and associate not asking with real pain The more you commit to believing this, the better will be your results. Go forth and ask, my friend!
Practise: for those of you who don’t fear asking but just
MATT ANDERSON Matt Anderson, founder of the Referrals Academy, has grown his business almost exclusively by referrals. He has trained and coached people from over 30 countries and specialises in helping financial advisers to get more and better prospects. He is based in Chicago but was born and raised in Coventry. He is the author of the international bestseller Fearless Referrals, which Brian Tracy, author of The Psychology of Sales, says “teaches you the “Golden Rules” for developing a continuous chain of high quality referrals for any product in any business.” Follow Matt on Twitter @mattandersontv
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ADVISE R SPOTLIGHT June 2017
Adviser Spotlight Anthony Villis 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 Anthony Villis, Managing Partner and founder at London-based First Wealth, about the development of his financial planning business and why it’s important to focus on the needs of the team as well as those of clients.
First Wealth has won many awards – I remember how impressed the IFP judges were with your winning submission for the Norton award a few years ago! What are the main principles on which you set up the business initially? How would you describe your business? Our aim is to be the best possible financial planning business we can be. First Wealth is a highly ambitious business, which strives for excellence but is relaxed and approachable in its delivery. Our goal is to be a great business to be a client of, and great business to work for and a business that does great things in the wider community. Could you share your vision for the future of the business and for the service you deliver to clients? The vision is to build a well-respected financial planning business with £1bn of assets under management within ten years. It’s ambitious and motivating. In order to achieve our vision, we’re going to need to make sure every aspect of our business is right. How do we delight our existing clients time and time again? Who are our target clients, what marketing do we need to do to attract them? How do we use technology to improve the efficiency of our service, how do we attract and retain the very best team? There’s a lot to think about, and that is what motivates us.
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The vision is to build a wellrespected financial planning business with £1bn of assets under management within ten years. It’s ambitious and motivating What drives you when it comes to running the business – in other words, what’s your “why”? For you personally, what are the best bits about being a financial planner? We’re driven in our desire to build the best possible business for our clients and our staff. We want to excel at financial planning, helping clients to articulate and achieve their big ambitions in life. We want to create an environment where our team enjoy coming to work, and are constantly learning and developing. We also want to ensure that the work life balance is right for the team, and that we live to our mantra that life is not a rehearsal. For First Wealth, our why is “Great financial planning can change your life. We exist to inspire ideas, create confidence and give you the freedom to live.” Personally, I love the creativity of financial planning and the freedom it leads to. For me, it’s important that you live your life to your own values; what matters and what doesn’t. When you do, you attract clients who get it and share your ‘why’.
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ADVISE R SPOTLIGHT June 2017
For me, it’s important that you live your life to your own values; what matters and what doesn’t. When you do, you attract clients who get it and share your ‘why’
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ADVISE R SPOTLIGHT June 2017
Can you talk us through who does what in your team? How do you work together and maintain the enthusiasm and passion that is needed to thrive and drive business success? How important is having a teamapproach? We really do have a brilliant team here. As a small business everyone pitches in where needed. The management team are Rob Caplan, Claire Phillips, Kerry Burgess and myself. Rob has the largest book and brings the most new clients to the practice each year, Claire is instrumental to the success we have achieved so far and makes the whole business work, Kerry is our new office manager, so has her sleeves rolled up with service delivery, client segmentation, workflow and team development (amongst other things!) Joe, Jamie, Agnieszka, Zoe and Robert all deserve a mention, as they’re all fantastic. Thanks guys! We’re also incredibly well supported by a team of outsourced resource. Joining the Best Practice network in 2011 was one of the best things we ever did. Their compliance function and the technology we have access to is first class. When it comes to your clients, do you have a particular client profile/segment that you prefer to work with? How do you identify those clients? Do you have different service propositions or is it onesize fits all? A high percentage of our clients are entrepreneurs and SME owners, who have been referred to us through a professional connection. We therefore have specialist knowledge in this sector, and believe it’s where we add most value to out clients. We have one service proposition; the First Wealth way of doing things. We know it won’t fit for everyone, but we’ve stopped trying to be all things to all people. We’ve also become better at saying no to clients who don’t fit our target profile.
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We have established the Graduate Transition Programme to bring graduates into the business and train them as the financial planners of the future. How do you generate new enquiries for the business? How important is marketing and what works best for you? What are your views on the use of social media as a business tool? Do you have any tips for other adviser firms looking to grow their businesses? Traditionally we’ve relied on personal recommendation and referrals through a network of accountants and lawyers we work with. This will take us far, but we realise we need to increase our reach. We’ve recently engaged with Tenfold Media to help us build and run an inbound marketing campaign. This campaign will help us to build our brand and to reflect our core beliefs. All the team are involved in content creation, so that readers can get a feel for the individuals involved in the business. We upload our content to our website and then share on the usual social media channels. For a small business, I’m very proud of our marketing campaign (thank you Tim and Amy!) What about professional development? How do you invest in yourselves and continue developing your knowledge and skills around business practice as well as technical knowledge? Do you think that professional qualifications are important? Yes, qualifications and hands on experience are both important. All of our advisers are Chartered and we are a Chartered firm. We have established the Graduate Transition Programme to bring graduates into the business and train them as the financial planners of the future. Our first gradate, Joe, is progressing incredibly well and should be in a position to become our next adviser in 2018.
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ADVISE R SPOTLIGHT June 2017
When it comes to the investment strategy and portfolio management services you operate, what’s your approach? What processes do you use? Which software systems? Do you favour an active or passive approach? The backbone of our investment solution is an award winning, in-house model portfolio service. We run wealth, income and accumulation portfolios, to cater for all of our clients’ requirements. Within each category we run seven risk-adjusted models. We blend active and passive investments within each portfolio to optimise returns and minimise costs. Our preferred platform is Fusion Wealth. In terms of due diligence, we rely on Independent Strategic Research (ISR), who monitor and analyse the entire fund space and then help us build the portfolios that match each client’s needs. As with everything else in our business, we are constantly looking to improve what we do. We have asked ISR to review the market place for Smart Beta products, which we believe are a great market innovation and one that we wish to use in our portfolios looking ahead. What tips would you give to other adviser firms looking to grow their businesses? I’d summarise it quite succinctly, and recommend that they clearly define what they stand for, and why they’re in business. A few books have really helped us get going on this front. The E-Myth by Michael Gerber helped us to see the difference between being a financial planner and having a successful financial planning business. Start with Why by Simon Sinek allowed us to unlock our passion for what we’re doing, Traction by Gino Wickman allowed us to pull the big picture ideas into something manageable and put in place the systems for us to grow.
Other than that, my tips would be to make sure you have fun growing your business (don’t just talk about it, do it), engage your team as stakeholder in the business whenever possible, make sure your clients are your biggest advocates. Don’t get distracted by the daily grind of the media, for every depressing story you read, there’s an equally inspiring story that doesn’t get written, look to the future (who are the stars of tomorrow in your business?). Always look to refine and improve everything you do. Take time out to think and reflect on what you’re doing, in fact that reminds me - there’s another book worth a read - Deep Work by Cal Newport.
My tips would be to make sure you have fun growing your business, engage your team as stakeholder in the business whenever possible
What do you like to do in your spare time? I’m a very proud Dad, so hanging out with my two year old daughter, Lux, is great. We’ve recently moved to Dorset, so we’re spending more time outside, walking on the beach and at the local pirate playground! I love sport; cycling, swimming, gym, surfing, skiing and golf. My ideal day is a sunny day on the beach with friends and family, then back to ours for a BBQ and a few beers. Bliss.
ANTHONY VILLIS Anthony is Managing Partner at First Wealth. He has an impressive list of qualifications: Chartered Financial Planner, Certified Financial Planner, Investment Management Certificate, and a B.Sc. in Economics. But the role he’s most proud of is being a dad to his beautiful daughter, Lux. As one of the firm’s founders, Anthony’s career highlight to date has been First Wealth winning the coveted IFP David Norton Building Excellence Award in 2015.
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SUCCESS TH ROUGH ACQU ISITION June 2017
Success through acquisition – a case study approach Following our series of profiles on active buyers in the I FA market, Louise Jeffreys, Managing Director at Gunner & Co., speaks to Dominic Rose, Director at Old Mutual Wealth Private Client Advisers, about their exciting business growth and acquisition strategy.
clients, guiding aspects around portfolio management as well as protection, and eventual passing of wealth in an all-encompassing service proposition. The firm provides stability in this journey through their growing national business, which has developed both organically and through acquisition. DOMINIC ROSE, DIRECTOR
Old Mutual Wealth PCA was set up in 2015. Although a young business, it is very much established, shown by their impressive £1.5bn AUA. They are an active buyer in a dynamic market. The financial planning business employs 45 financial planners across 5 office locations, stretching from London, Chester, Birmingham, Newton Abbot, to Shipley. It places an overriding emphasis on building strong relationships with clients, promising a trustbased, and “no surprises” service. It is interesting to look at the journey they undertake with
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They’ve successfully made a series of acquisitions including JW Financial Planning in Cheshire and DQS Financial
The firm has seen strong organic growth through their growing network of professional connections
Management in Newton Abbot. This means they have developed crucial experience in buying firms, allowing the smoothest transition for the businesses and clients alike.
As well as this, the firm has seen strong organic growth through their growing network of professional connections and through the process of referrals from clients. This combination, along with its positive approach to acquire like-minded firms, puts them in a good position to continue to grow in the future. Business background Following launch in 2015, the firm became an appointed representative of Intrinsic, which is, in turn, wholly owned by Old Mutual Wealth. The financial planning business shares and benefits from Old Mutual’s experience and brand - providing the strong backing which is crucial in a market founded on trust. Nigel Speirs, Managing Director of the company, is passionate about delivering exceptional client outcomes. Having built a strong track record in strategic roles within advice businesses for over 20 years. Nigel joined Old Mutual Wealth in 2015 to lead
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the development of Old Mutual Wealth Private Client Advisers. Acquisition strategy Dominic Rose, Director of the firm’s London division, offers us his insight into what makes a perfect partner to their acquisition strategy. Simply put, Dominic states that finding “businesses with matching client demographics is the most important factor for us.” An example would be average client portfolio size – they can only consider businesses where the average client has at least £300k of investible assets, as the business is set up to focus on offering a first class advice service to High Net Worth (HNW) clients.
In addition, there is stronger alignment with a target business which has traditionally offered actively- managed investment solutions to clients, rather than following a passive approach. When it comes to charging structure, those firms with ongoing charges of up to 1% are preferred. Location, location, location In general, the business is particularly interested in integrating firms which are close to its existing offices in London, Chester, Birmingham, Newton Abbot and Shipley – in particular acquiring the client banks of retiring advisers.
relationships, it won't come as a surprise to discover that the company works hard to ensure that clients’ needs are effectively met. Where the adviser is retiring, there is an immediate emphasis on clients having face-to-face meetings with one of the Old Mutual Wealth PCA’s team of financial planners. In the scenario where advisers are staying on post-acquisition, Old Mutual will also work closely with them to integrate them effectively into the new business and welcome them as new members of the team. As we know, no two financial planning businesses are the
Given that a key priority of any transition is on building
RIVERSIDE, LONDON
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SUCCESS TH ROUGH ACQU ISITION June 2017
same. Because of this, the firm does not approach all potential acquisitions in the exact same way, describing its strategy as being reactive to the seller’s business structure. Typically Rose describes their position: ‘A business owner who does not wish to be involved with future client work as an adviser, will generally work with us for a period to affect an orderly handover of clients on a face to face basis. Our purchase proposition is specific to each business. We work with business owners to structure an agreement in a way that meets their objectives, as far as we are able to. We like to have informal initial conversations with owners, on a confidential basis, where we can understand more about their business and their personal objectives.’ Looking ahead at their strategy for growth, Rose considers that it isn’t so much about a set volume of acquisitions they wish to undertake, but is all about having the ‘right fit’ for each future transaction.
A CASE STUDY We asked Dominic Rose to give us an example of what, in his view, makes a successful acquisition: He highlights one particular example of a smooth transition of a business with 270 clients that they acquired, where the adviser was retiring. Out of those 270, only one refused a meeting with their new financial planner. Stressing the quality of the hand-over service which was offered, Rose believes that the success in transition was down to the time and care taken to conduct face to face hand-over meetings for the majority of clients with their new financial planners. This process has meant that the firm was able to reassure those clients that Old Mutual Wealth Private Client Advisers was the right home for them and would continue to fully meet their needs in future. Six months on from the completion of the sale, every client has now been seen and their situations reviewed. No client will invest in a new solution unless it is demonstrably in their best interests. Feedback from the clients has been positive and they are now settled with their new financial planners and dedicated support team. Key to a successful client transition is therefore to ensure that there is clear and regular contact, as well as ensuring that the previous service and investment processes which they experienced match well with the acquiring business.
When it comes to what might put them off buying a business, Rose says, those who make ‘esoteric’ or ‘high-risk’ investments are deal breakers for them.
If you would like to know more about this or you have any other questions relating to mergers and acquisitions, I’d be happy to share my experience further. Please just drop me an email to louise.jeffreys@gunnerandco.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
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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 Other
Private Investor Factsheet
20.20%
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
ASSET ALLOCATION
£ Strategic Bond
Managed Fund Since: 31/08/2007
UK Equity Income
DOCUMENTS
Global
Private Investor Factsheet
Professional Investor Factsheet
BBB
4.95% 7.02%
B
3.86%
CCC
0.80%
D
0.00%
No Rating
2.29%
Other
Risks
10
20
New M&GCapital Global Wealthy DividendNations Class A Bond USD
Total
New Capital Wealthy Nations Aviva Investors Property TrustBond ClassUSD 2
Name
19.42
Mixed Investment 20-60% Shares 16.65
31/08/2007 £0.50
6
POUND STERLING RECEIV. 05APR16 JPM UNITED STATES GOVERNMENT
5.85
AUSTRALIAN GOVERNMENT
5.39
Novartis AG
5.19
Pound Sterling
5.08
21
4.33 3.85
Unclassified
3.79
Equity-Asia Pacific ex Japan
3.26
Weight1.54 (%)
Equity-Global Emerging Markets
1.24 19.42
United Kingdom
UK Equity Income
8
Prusik Asian Equity Income Class 1B
11.19
Japan
Total
% Growth
UBAM UBAM Global High Yield Solution IHD
IMA Mixed Investment 13.22 20-60
Cash and Equivalents £ Strategic Bond
PERFORMANCE
Aviva Investors Property Trust Class 2
100.00
16.65
United States
United Kingdom
8.36% 0.67 16.52%
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%
20.20%
10Y
From:
MARKET CAP
10 to 15 years
2.82% 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%
2.96%
5.39%
United States
£0 - £250m £250m - £1n
2.55%
Fund
Feb 2011 Feb 2012
£5bn - -£10bn £10bn £20bn Telecommunications
Germany
CUMULATIVE PERFORMANCE
Quartile
Vodafone Group
3.21%
Over 15 years
0.74
£10bn £20bn £20bn --Technology £50bn
Jan 16
10/03/2016
11.56% 24.69%
0.83
Microsoft Corp.
3.44%
DEBT MATURITY
Rank
18.45% 40.34%
France
Oct 15
10/03/2015
5Y
Switzerland
3.50%
Other Jul 15
3Y
Non-Classified
Health Care
4.64%
Apr 15
1Y
Bonds
£20bn £50bn+- £50bn
6.30%
-6
6M
20.34% 1.35
5.85
-4
3M
1.47
Non-Classified
Global
-2
3.26
£50bn+Health MARKET CAPCare
10.01%
Netherlands
5.08
Technology
Managed Funds Non-Classified
11.19
5.39
Managed Funds
MARKETTelecommunications CAP
Cash and Equivalents
0
1M
5.19 Fund Managed
Country
Bonds
Total
13.22
2
-8
Managed Fund Weight (%)
Direct Property and REITs
Switzerland
100.00
Managed Fund
Direct Property Total ManHealth GLG Care Strategic Bond Professional D and REITs
Managed Funds
Japan
4.12 Managed Fund
Managed Fund
Specialist
Global Bonds
6.00
Managed 5.67 Fund
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
Property Launch Price
Income
The Industry Classification Benchmark is a product of FTSE International Limited and has been licensed for use.
Weight (%)
Launch Date
Managed Fund
Developed Government Bonds
30
Weight (%)
GEOGRAPHY
£43.81m
7.74 Fund Managed
M&G Global Dividend Class AEquity Invesco Perpetual European Investment Grade Bonds
4.62% Admin & Trading
Fund Size
Capital Class Z
Cash and Short-maturity Bonds
0
53.38
Invesco Perpetual European EquityCapital IncomeClass Z Global Financial
Real Estate
67.84%
CashRatings
Equity-USANumber Of Holdings
ASSET ALLOCATION
Managed Fund 16.32
Non-Classified Jupiter Strategic Bond Class I Invesco Perpetual Global Financial
£ High YieldFund Currency
Latest Report & Accounts
Jupiter Strategic Bond ClassIncome I Legg Mason IF Brandywine Optimiser Class X
High Yield and Emerging Markets Bonds
3.43%
BB
Weight (%)
Managed Fund
1.67%
Global Bonds
Summarised Factsheet
KIID
Sector Managed Fund
Legg Mason IF Brandywine Income Optimiser X BlackRock Continental European Income ClassClass A
A
Benchmark Europe Excluding UK Specialist
Name BlackRock Continental European Income Class A
AA
IA Sector
Multi Manager Team
Yes
Sector
Developed Market Equities
TOP 10 HOLDINGS
MULTI MANAGER TEAM
Yes
Name
3.52%
NameDETAILS
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
SIPP Allowable
MARKET CAP
Over 15 years
OVERVIEW
Summarised Factsheet
Professional Investor Factsheet
PORTFOLIO ANALYSIS
2.55%
DEBT MATURITY
KIID
Latest Report & Accounts
3.21%
France
Overview
DOCUMENTS
EQU ITI ES SPECIAL June 2017
Equities Special
Equities – an adviser perspective on what’s hot and what’s not Even though we have seen a number of equity markets hitting record highs this year, this should not deter advisers and their clients from putting cash into markets, says Ben Willis, Head of Research at Whitechurch Securities, based in Bristol.
Asset allocation decisions are always challenging, but today’s turbulent political situation adds a new dimension, and one which emphasises the need for detailed due diligence. That being said, although we would be very surprised to see equity markets deliver a repeat of last year’s performance, we certainly feel that equities can provide many opportunities for those prepared to ignore short-term political noise, focus on valuations and take a longer-term perspective.
their capacity for loss. Despite inflation ticking further upwards recently, a low growth environment and ongoing uncertainty regarding the shape of Brexit will mean UK interest
At odds with many of our peers, one market which we currently do not favour is the US
The UK market – still providing opportunities The first place we start when looking at gaining equity exposure is at home and all clients would have some exposure here. For those with a cautious risk profile, this would be limited to between 20-35% of the portfolio depending on
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rates are likely to remain at emergency levels. With equities providing considerably higher yields than cash and bonds a relatively defensive fund such as Trojan Income is an excellent
core choice given its strong riskadjusted return profile. The continued resilience of the UK economy and the current stability in sterling (despite the triggering of Article 50) has seen investors re-appraise UK mid and smaller companies, which were out of favour for much of last year. For higher risk clients our long-term preference here is Aberforth UK Smaller Companies. The managers of this fund take a contrarian stance, looking for undervalued smaller companies, on cheap valuations that are being overlooked by the broader market. US looking peaky At odds with many of our peers, one market which we currently do not favour is the US. US equity performance has been exceptional, much of it driven by
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EQU ITI ES SPECIAL June 2017
its global leading businesses but also underpinned by the recovery in the US economy too. President Trump’s election last year, along with his pro-growth policies certainly affected investor sentiment, spurring US equity indices upwards. This has led to excessive valuations in many areas of the US market, and relative to other equity markets. In addition, although corporate profits have been strong over the years we feel that these are at peak levels. However, the US market is so important that we cannot ignore it. Our core preference is for equity income exposure and we have recently invested into a new fund launch, Schroder US Equity Income Maximiser. This aims to deliver a 5% income from writing covered calls whilst tracking the S&P 500. In addition, for higher risk clients we are playing a Trump card by investing in Artemis US Smaller Companies, where the manager is targeting energy, defence and infrastructure stocks in light of the President’s policies.
Europe looks good value Forget Brexit, forget elections, European equities are our favoured market currently. There are several indicators that are pointing to potential outperformance. The European Central Bank still remains supportive, although monetary stimulus is coming to an end, economic growth is gradually recovering and inflation is ticking up. Most importantly, after years of stagnation there are signs that corporate profits growth is coming back. From a valuations perspective it is hard to
argue that European markets are cheap. However, they are at a substantial discount to the US in particular. Within European markets there is significant disparity in valuations between quality global leaders and domestic cyclicals where European recovery would be amplified into robust earnings growth as margins expand. As such, we adopt a ‘barbell’ approach to investing in Europe, combining both growth and value styles of investing. Our core position is in Crux European Special Situations
Forget Brexit, forget elections, European equities are our favoured market currently
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EQU ITI ES SPECIAL June 2017
managed by Richard Pease, who pays no attention to the economy or politics, focusing on medium-sized companies that the manager believes have good quality management. To complement this we hold Neptune European Opportunities which is more focused on economically sensitive areas. This is highlighted by the fund’s overweight stance in the banking sector, where shares are trading on cheap valuations but have spent years recapitalising and restructuring and should benefit from further economic recovery. Selective in Japan We also adopt the ‘barbell’ approach when investing in Japan. The authorities have embarked on unprecedented monetary stimulus but the real changes come from structural reforms on corporate dividend policy and improvements on return on equity, although these will take time to come through. Our favoured positions here are in Man GLG Japan Core Alpha, which focuses on ‘cheap’, economically sensitive large company stocks, and the Baillie Gifford Japanese Income & Growth Fund, which aims to tap into the growing dividend culture.
Asia and Emerging Markets still showing promise Outside of the developed markets, we favour Asian and Emerging Market equities but only for clients with higher attitudes to risk. For the most adventurous clients we will invest in country-specific funds such as China and India, although in the main we take a broadbased approach to investing in these markets.
Renewed optimism over China should not let investors become complacent over the longer-term risks of instability in the world’s second largest economy
The biggest short-term risks facing these markets emanate from the US with the strength of the dollar, US interest rates, Treasury yields and protectionist policies all short-term potential headwinds. Also, renewed optimism over China should not let investors become complacent over the longer-term risks of instability in the world’s second largest economy.
However, the past year has seen a steadier economic environment in Asia and Emerging Markets. Given that commodity prices and Chinese growth are more stable now, we think the fundamentals remain attractive. Structural reforms, better corporate governance, greater consumerism and cheaper relative valuations, still make these markets attractive for longer term, higher risk investors. Our core position in Asia has always been Stewart Investors Asia Pacific Leaders, which has produced exemplary, long term risk adjusted returns from investing in these markets. With regards our emerging market exposure, we have been utilising the cost efficient, BlackRock Emerging Markets Equity Index Tracker. Given the higher volatility of these markets, we would only invest in these markets for higher risk clients, those who are comfortable with investing between 85-100% of their portfolio in equities. Even then, their investment objective would determine the actual position weighting. For example, an investor seeking long-term capital growth may hold up to 20% in these markets, whereas as an investor looking to maximise income may only have 10%.
BEN WILLIS Ben has been Head of Research at Whitechurch for over 10 years, having joined the company in July 2006 from Chartwell Investment Management. Ben holds the Investment Management Certificate (IMC) and the Diploma in Financial Planning and is jointly responsible for fund research and portfolio management for private clients and adviser businesses. Ben regular contributes with articles and commentary on fund research for the financial services industry.
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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 R E A SPECIA L I ST 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
gunnerandco.com
EQU ITI ES SPECIAL June 2017
Equities Special
Where next for equities and bonds? Brian Tora takes a look back at historical trends as he considers the yield gap amongst other measures to assess the relative value of equities and bonds today.
When I started out in the investment business, more than half a century ago, the choice of assets available for private investors’ portfolios was very restricted. Cash, British Government securities (or gilts as they are better known) and equities was all there really were. Moreover, the cash would be just in sterling, while the equities were almost exclusively domestic as the dollar premium made investing overseas extremely expensive. Today our choice is much wider – not just geographically, but in terms of the nature of the assets that can be utilised. Infrastructure, private equity and property, as examples, can enjoy different characteristics to other asset classes, not to mention the way in which bonds have become divided into a whole range of sub classes. Even so,
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the main comparison that asset allocators continue to use is the relationship between equities and bonds and valuation levels on an historical basis.
For a lengthy period gilts yielded more than equities, creating a so-called reverse yield gap
The yield gap Probably the most quoted comparator is the so called yield gap – the difference between the yield on equities with that of gilts. It hasn’t always been a yield gap. For a lengthy period
gilts yielded more than equities, creating a so-called reverse yield gap. This came about in the years following the Second World War when occupational pension schemes were becoming increasingly popular and creating an important role for themselves in the investment world. Until the 1950s, pension funds tended to look upon gilts and property as the only suitable investments. But inflation and the propensity of well-managed companies to increase their dividend payouts to shareholders regularly increased the attraction of equities to pension fund managers. The shift in relative valuation levels was dramatic. According to the Barclays Equity Gilt Study 2017, which looks at investment returns since 1899, equities outperformed gilts by 9.2% on an average per annum basis during the decade
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EQU ITI ES SPECIAL June 2017
to 1956 and by 8.1% in the following decade. Before this re-rating took place, equities were expected to deliver higher income returns as a reflection of the greater risk they carried. But an increasing demand for equities drove their yields down, while inflationary fears pushed gilt yields higher, resulting in negative total returns throughout the two decades until 1976. Indeed, in the mid 1970s, gilt yields approached 20% as inflation rose to around 25% at one point. Equities suffered too, but not to the same extent. The reverse yield gap prevailed until the financial crisis of 2008. Then, a flight to quality and muted inflationary fears pushed down gilt yields, while initially equities suffered hugely. The yield gap was restored and has prevailed ever since, with the yield on ten year gilts just 1.2%, while that on the FTSE 100 Share Index stands at 3.7% at the time of writing. Dividend growth continues, though, at a pace that is close to the average over the last half century of a little over 5% per annum – well over the rate of inflation. Are equities overvalued? If historic comparisons over yield differentials support the case for equities against bonds, longer term trends in price earnings
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multiples appear less favourable. By the end of April the P/E ratio, as it is commonly known, on the Footsie stood at over 30 times well above the long term average, though distorted by lower profits from resource stocks. However,
way of expressing this particular measure is through the earnings yield – what a company would pay out in dividends if it returned all its profits to shareholders. The earnings yield on equities is way above the yield on gilts. Room for correction
Dividend growth continues, though, at a pace that is close to the average over the last half century of a little over 5% per annum – well over the rate of inflation
strong profits growth or recovery will be needed to sustain this valuation. In the United States this particular criteria is even more stretched. The election of a perceived business-friendly president has brought renewed optimism amongst investors, though it is far too early to determine how successful he is likely to be. The P/E ratio can be best described as representing the number of years a company will need in order to earn its current share price at its present level of profitability. A high P/E is likely to suggest expectations of strong future profits growth. Another
What should we read into the current valuation criteria for equities and bonds? Probably that there is room for a correction in both markets, but that there is little evidence of the conditions for a full scale bear market in equities. We should not take too much comfort from this, though. Bear markets generally start when shares are at a high point and optimism reigns. Conversely, the time to buy is at the low point of a bear market, but nobody rings a bell at the bottom. The main risks seem to be rising interest rates, something that has already started in the US, admittedly gently, the stalling of the global economy or a geo-political event of some magnitude. Rising interest rates would take the wind out of the bond market’s sails, but may not impinge on equities. An economic slowdown could lead to a reversal of interest rate rises and more support for bonds. As always, nothing in the investment business is certain.
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ADVE RTORIAL June 2017
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I FAmagazine.com
ADVE RTORIAL June 2017
On behalf of I FA Magazine, we invite you to join London Capital Club This historic business club is an exclusive membersonly venue celebrating 23 years of professional and excellent personal service, offering financial advisers and planners a unique opportunity to access a network of key players in every major industry in the city of London. Since the Club’s founding back in 1994, no effort has been spared to provide members with superior facilities and the services fitting of a fine, traditional, private city club. The Club is a hidden gem, strategically located in the heart of the City and is a stone’s throw from The Bank of England, The Stock Exchange, Lloyds of London and various financial institutions, as well as London Underground stations at Cannon Street, Monument and Bank.
The London Capital Club has developed the reputation for being a truly international private club with the right balance of qualities to be a valued institution in the community. It offers excellent facilities for private meetings hosting from 2 – 150 guests and also offers exceptional value for money. The Club is also designed to meet the demands of those from the top echelons of business, finance and government. It is committed to the highest levels of comfort and cuisine, delivering excellent events for both business and social networking and an unparalleled level of personal service.
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Our calendar of varied, in-house events will give you the platform to meet like-minded people and to expand your social and professional network. As a member of the London Capital Club and its affiliation with the International Associate Clubs, you will enjoy non-residential membership privileges at 250 of the world’s most prestigious private members clubs in over 50 countries. For additional information about International Associate Clubs please visit: www.iacworldwide.com Membership is strictly by invitation only. The Club will be arranging a special open day with complimentary canapés and drinks on Tuesday 25th July at 6pm, in order for you to view our facilities as well as sample our English cuisine prior to taking up membership. Make the London Capital Club your home away from home!
Please RSVP prior to Thursday 20th July to Maria, our Membership Relations Co-ordinator on: membership@londoncapitalclub.com or call 0207 717 0088 in order to reserve your space as places are limited.
37
N EW LGBTI SE RVICE June 2017
First specialist LGBTI wealth management service City Editor Neil Martin reports on the creation of a valuable financial advice service for the LGBTI community in the U K, and a potential growth area for I FAs
An important milestone has been reached recently with the launch of the UK’s first ever international specialist wealth management service for those in the UK community who are lesbian, gay, bisexual, transgender and/or intersex (LGBTI). The Equality Wealth service is the brainchild of the team at Equality Wealth Management (EWM) who have teamed up with St James’s Place Wealth Management (SJPM) to put it in place. The service has been developed in response to an increasing need for specialist financial advice within the LGBTI community. And the need for such a service was aptly highlighted when research commissioned by Equality Wealth Management showed that elders within the LGBTI community are having to pay an average 20% retirement ‘premium’ that straight people do not have to pay.
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Paul Thompson, who is Chairman of Equality Wealth and founder of LGBT Capital, said: “LGBTI people often want or need to retire to more expensive cities so they are not cut off from friends, the community and vital services. Most people haven’t thought about this ‘LGBTI
The main problem is made worse because LGBTIs aren’t preparing for retirement and that traditional financial advisers don’t understand their requirements
retirement premium.’ Many LGBTIs do not plan adequately for retirement. So this extra cost is a ticking time-bomb for thousands of us.” Thompson added: “This is a conservative estimate. It would
be even higher if London was included in the average.” The main problem is made worse because LGBTIs aren’t preparing for retirement and that traditional financial advisers don’t understand their requirements. The Equality Wealth service was launched and piloted in Hong Kong, which was where EWM first approached SJP. It looked at a number of UK and international IFA firms before it chose SJPM to cover the UK and Ireland, dealing with the firm’s joint chief operating officer, Iain Rayner. He then handed over the focus to Shaun Godfrey, Head of Acquisition, Marketing & Operations, and his colleagues in the recruitment team. An accreditation programme Structured as an Accreditation Programme for LGBTI specialist financial advisers, Equality Wealth connects to advice and services by introducing specially trained SJPM advisers
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N EW LGBTI SE RVICE June 2017
with expertise in a number of key areas, including retirement planning and saving, insurance and wealth protection. It aims to combine the financial planning resource of SJPM with the specialist knowledge of the issues facing the LGBTI community. Equality Wealth also acts a conduit to specialist knowledge and financial advice for the LGBTI community on starting a family. Thompson again: “We think a specialist LGBTI wealth management service in partnership with SJPM is a very important development and shows the significance of the LGBTI market. Many people in the LGBTI community do not have access to advisers who truly understand their needs and the LGBTI life cycle can be very different. Important issues such as saving for retirement can be overlooked and with a generally higher disposable income, there is real opportunity - with the right advice – for us to help the LGBTI community to achieve their financial goals. “Clearly the LGBTI consumer represents a significant opportunity for both spending and investment but it is essential that where financial advice is given, that there is genuine understanding of the individual’s specific issues. In regions where LGBTI individuals are generally more private about their lifestyle, it is even more important to have a trusted adviser with whom they feel comfortable discussing their situation and objectives. We believe that Equality Wealth provides this.” Iain Rayner, Joint Chief Operating Officer of St James’s Place, said: “We are delighted that Equality Wealth has chosen
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to work with us on this exciting initiative. Our corporate values embrace diversity and inclusion and we are keen to actively project these values by supporting all members of society in reaching their financial goals and having advice tailored to their needs.” A significant and growing market Figures show that the LGBTI market is a significant and growing market. The LGBTI population in the UK alone is over 4 million and represents some US$150 billion in spending power each year. Globally, the LGBTI population is estimated at over $400 million with a spending power of some $3 trillion and an estimated total wealth of $15 trillion.
The LGBTI population in the UK alone is over 4 million and represents some US$150 billion in spending power each year
Anders Jacobsen, Head of Investment & Research at LGBT Capital, supports product development and provider screening efforts at Equality Wealth, maximising the LGBTrelevance and values sought in both industry partners and their product offering. He commented: “We observe that the LGBT community is becoming increasingly aware of the power to create positive change in its spending and investment decisions. Companies and service providers are responding
accordingly, seeking to profile well to this community and to the growing community of LGBT allies, who are also seeking evidence of corporates’ social and inclusion values when making their consumer choices.” Godfrey added: “Having recently attended the seminar in London talking about retirement, I was very interested to learn that, as well as the seminar having so many people in attendance, it was also being filmed and screened live, as part of a new festival called Digital Pride Week. “The initial number of people who watched the seminar was 4000 and a further 4000 have since viewed it on play back. In terms of market opportunity, well, the numbers speak for themselves and we are really pleased to be a part of this.” When asked if the new service is a big commitment from SJPM in terms of training, Godfrey replied: “Not really. We are supported by a wellresourced team of training and development professionals who support our Partners in all manner of learning, such as support for gaining Chartered status. The development of this training for advisers wanting to advise in the LGBTI market is something we can do reasonably quickly, in the same way that we support Partners wanting to specialise in VCT, EIS, long term care, auto enrolment etc.” The last word goes to Godfrey: “Having witnessed first-hand the problems faced by members of the LGBTI community in gaining access to quality and well informed financial advice, I see more advisers becoming interested in giving advice and supporting these individuals towards achieving their goals.”
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RICHARD HARVEY June 2017
No pain, no gain Richard Harvey bemoans the fact that accumulating enough for a decent retirement is now a major challenge – and not just for the young
What do you want first? The bad news or the good news? I thought so. The bad news is the relentless tide of warnings about how we all need to up our game to ensure we can fund a decent standard of living in retirement, which will come as no surprise to you. Sadly, for me and many others like me, the prognosis is about as comforting as the thought of Donald Trump opening up that briefcase, and poising his pudgy finger over the big red button. You don't have to be a genius to realise that the vast majority of the population simply aren't willing, or able, to salt away the absolute fortune which is required to guarantee a decent retirement lifestyle. As advisers, you will no doubt come across this situation all too regularly. However, those individuals who seek professional advice at least are in with a good chance of accumulating what they need – as long as they keep up the good work and keep making the payments. It’s those who aren’t taking action who are most at risk.
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Workplace pensions are, at least, helping large numbers of people to put something aside each month for their retirement. But do we really believe that even the longest-serving employee will ultimately be able to build a mountain of money, sufficient to pay for a modestly comfortable future? Are people burying their heads in the sand rather than face up to the level of contributions
Are people burying their heads in the sand rather than face up to the level of contributions they will need to make?
they will need to make if they are to enjoy the same standard of living in retirement as their parents did? My guess is that many are doing just that. And now the good news You might assume that living longer would come under the 'good news' column. Nope -
because the last bit of advice I received from my IFA was: "We're all living longer, so make sure you don't run out of money in your retirement". Just to double check my putative mortality, I logged onto the Office for National Statistics website, which contains a dinky little quiz telling you how much longer you can expect to live. Despite it appearing incredibly simplistic - the only information they required was about sex (not enough, ho, ho, ho) and my age (71 actually, 14 mentally, 134 physically). The surprising verdict: I have another 16 years to go. Now there are plenty of other online calculators to establish your longevity, but they're impertinent enough to ask questions about cigarettes, booze and exercise. As I have imbibed my share of the first two - plus a lifetime's allocation for at least another 10 other reprobates - and whose sole exercise is stretching to reach the TV remote, I am sufficiently grown-up to realise that my predicted checking out age of 87 is the sort of hugely optimistic
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RICHARD HARVEY June 2017
ambition that Leyton Orient might have for winning the European Championship. However, as the ONS is the guardian and arbiter of the nation's stats, they really should know. They even reckon I have an (admittedly vanishingly slim) chance of making my centenary. So, like everyone else of my vintage, I do mental calculations about how long before the pension pot is as empty as that bottle of Aussie red I sank last night, if the ISAs are earning anything remotely respectable, and what might be stuffed down the back of the sofa. I'm fortunate that the Good Lady Wife has always worked in the
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basic-plus-bonus world of sales, which has afforded her much better rewards than the stipends afforded to humble hacks like me.
The average woman's pension pot has now increased to £24,900, but it is way less than the men's average of £73,600 As a result, she has a decent pension pot which, if ONS is correct, may help keep me in incontinence pads and big print books as I slip into dotage.
Others may not be so fortunate. Pension and investments company Aegon has conducted some research, revealing that while the average woman's pension pot has now increased to £24,900, it is way less than the men's average of £73,600. To be honest, neither figure is likely to provide the means for a financially-sound retirement. There is work to be done. Never mind. Perhaps our new, post-election Chancellor of the Exchequer has some wizard wheeze to help boost everyone's retirement savings. What do you reckon?
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E D’S RANT June 2017
May’s Best Friend? Spare a thought, says Michael Wilson, for the one group that doesn’t have a vote on 8th June. The business community...
If your best friend could only talk, as the dog food adverts on the telly used to say, he’d choose Bonzo. Or Top Dog, or Fido, or Woofit. The fact that he couldn’t actually speak, and that you therefore had to make the choice on his silent behalf, was a powerful practical affirmation of the trust between you both. Conversely, of course, the fact that it was you paying the bill and not him meant that there were always certain limits to how far his wishes would come into it. But you did your best, on the whole, to keep him happy. He deserved nothing less. Obviously, there are limits to how far this particular editorial analogy can stretch. If I’m not careful, my inbox will soon be groaning with protests that I’m suggesting somebody’s making a dog’s breakfast of this upcoming election, and I certainly wouldn’t want that. But while my luck holds, let’s see where those limits are? To state the obvious, businesses don’t have a vote in a general election, and their voices don’t carry all that far when everyone’s focusing on other matters. But, as we’ll see shortly, the problem is that the Prime Minister is very deliberately forcing the country to choose between party and Brexit preferences - something
42
that she’s making no attempt to deny. And that’s an area where business has much to be worried about. The point I want to make is that businesses aren’t comfortable being penned into one political camp when their interests are in another vector that doesn’t really intersect cleanly with it. But back to the dogs in the hound pool. Despite appearances at times, we’d have to admit that
The problem is that the Prime Minister is very deliberately forcing the country to choose between party and Brexit preferences
Bonzo currently gets on really quite well with Bruno and Fifi and all the scruffy mutts down the road. Oh, certainly they argue about who gets the first turn at the bones and who gets to terrorise the cat, but they’re all pack animals at heart and they all share the same basic DNA. So Bonzo’s going to feel the difference when the spiked collar suddenly goes on and the house rules about
consorting with the rest of the neighbourhood are tightened. Torn loyalties And yet, the Conservative Party has always been regarded as the ‘natural’ home of the business community – give or take, perhaps, a few years around the millennium when Tony Blair’s incoming Labour government (1997) was hitting its stride. Rightly or wrongly, the profit principle has often sat awkwardly with an aspiration to put social fairness at the top of the political agenda. And if the UK’s business community has managed over the years to soften the hardnosed, driving-striving character that once typified the Thatcher years, then that was a major achievement that just might have been obtained by looking at the gentler management styles to be found elsewhere in the European Union. Rubbish, the Brexiteers would have responded, Europe’s business style was always based on rigged national markets, high taxes, state-socialised enterprises (of which there are still really quite a lot), and of course the substantial net contribution that innovative Britain was making to the European budget. As long as cash-cows like Britain or Germany were providing all the budgetary backing, where was
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E D’S RANT June 2017
Bonzo’s going to feel the difference when the spiked collar suddenly goes on and the house rules about consorting with the rest of the neighbourhood are tightened
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E D’S RANT June 2017
the impetus for change? Time to quit, and never mind the complications. It’d be worth it. And that’s where Theresa May runs into her first major problems with the business community. If, of course, she can negotiate (or indeed force) some sort of retention of the Single European Market, which allows a British manufacturer to send a lorryload of widgets to Greece on one set of customs papers, instead of the twenty-odd that will be required if no Euro-block collective deal can be reached, then that will be wonderful. Yet her position, as of mid-May, was still that she wanted no part of the Single Market because she couldn’t accept the free migration flows that must (of generally agreed necessity) accompany a free labour market. She has her reasons, of course. Even at 200,000 a year, a net immigration flow presents a problem for the general populace that isn’t in line with what business wants. UKIP’s protests that Polish workers are driving down wages are valid, as far as they go, but they don’t mesh with the needs of businesses such as healthcare or agriculture or road distribution, all of which depend heavily on such workers. That’s only one of the places where the Prime Minister’s insistence on tight migration controls rankles with the CBI. As we’ll see shortly. Suitable suits The old joke goes that marriage is like a game of cards. It begins
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with two hearts and a diamond, but by the end of it you’re both wishing you had a club and a spade. And, hyperbole apart, that’s not so very far from the darkly brooding impression that European Commission President Jean-Claude Juncker has managed to convey during the last few months. Quite a change from the bright new world that seemed to beckon when I was writing about the newly formed Single European Market back in 1992.
What business seems to want, at least publicly, is to accept the Brexit inevitability and to focus on making the best of what opportunities present themselves
So It may not have been such a coincidence, then, that Mrs “parallel universe” May’s dinner encounter with Mr Juncker went so badly wrong in late April. And that Europe’s number-crunchers abruptly upped their estimate of the Brexit bill from €60 billion to €100 billion? We could argue about whether Mrs May could possibly have done anything to head off the revenge attack, but either way, it was a double disaster for Britain’s business community. While the red-tops and the Daily Mail applauded Juncker’s rebuff as clear evidence of what nasty, vindictive people these Europeans were, the Financial Times was filled with more pensive worries about how an acrimonious divorce might play out. The divide between business, which had no vote, and the public, which did, was becoming painful. Back to the table
While Boris Johnson banters on cheerily about how it’ll all be all right on the night, a slightly vengeful Mr Juncker seems not to have forgotten that it was David Cameron who personally tried to bury his own career. Only three years ago, the former PM launched a brief but vitriolic campaign to get the incoming Luxembourger’s appointment blocked – partly on the grounds, you might recall, that Luxembourg was a seedy sort of place full of tax evaders. Oops.
At which point, let’s return to return to our card-game motif. If you cut the deck and deal the cards, it’ll help your strategy somewhat if you’re extremely clear as to whether you’re looking primarily for high numbers, or alternatively for clubs and diamonds. Last summer’s Brexit referendum was clearly about the former – as long as you’d decided on the numbers, it didn’t matter what political suit you happened to represent. But this year, it’s the difference between red and black, hearts and diamonds, Tory and Labour and Lib Dem and SNP,
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that matters. The PM is cutting the exact same deck of cards in search of that different vector that I mentioned earlier. That’s a problem for many mainstream Tories who hate the idea of Brexit – the young, the London-dwellers, and what the papers love to call the liberal elites. The possibility of a silent but wide-scale abstention on polling day is probably the PM’s worst worry, especially if it allows the resurgent Liberal Democrats to reassert themselves in the marginal constituencies that they lost in 2015. But for business, the election is much more anguished. If only because hardly anybody is even asking them what they want from this election. Clarity, please What business seems to want, at least publicly, is to accept the Brexit inevitability and to focus on making the best of what opportunities present themselves. It would be a bad mistake to allow Brexit to dominate the present discussion about the forward development of the UK economy, said Allie Renison, head of Europe and trade policy at the Institute of Directors in a recent Financial Times interview. And she went on: “Making the best of leaving the EU depends on strengthening our economic fundamentals, including infrastructure and skills.” But alas, the various parties had been tantalisingly vague about how they intended to do all that.
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The message from across the board is that, Brexit or no Brexit, businesses are already carrying their fair share of the tax burden, and that if any party follows the Conservative party’s lead in breaking a 2015 promise not to raise taxes, VAT or National Insurance, it’ll be one break too many Adam Marshall, director-general of the British Chambers of Commerce, added that humdrum issues like broadband, mobile phones and reliable road and rail services were actually more important to local businesses than anything to do with Brexit. But the Confederation of British Industry swiftly countered that, although most UK businesses aren’t making exports, they’re more vulnerable than they might think – not just because of [price] pressures on their supply chain needs, but also because of regulatory uncertainty,” or because of difficulty accessing skills they need.” That’s a theme which the CBI took up in February, when director-general, Carolyn Fairbairn told MPs that it was essential to keep Britain’s borders open to foreign workers – not just the higher-skilled European personnel on whom so much research and managerial work depends, but also the lowerskilled workers who are engaged on construction or healthcare projects where the government
has already set targets that need to be met. That was echoed even by the pro-Brexit former head of the BCC, John Longworth, who said, also in February, that it would be absurd to close the door on EU immigration while British workers were still unable or unwilling to fill the jobs required. He was understood to favour a revised system whereby incoming workers required UK employers to sponsor their visa applications. Taxes and economic growth I don’t know about you, but I haven’t come across any business organisation that’s happy with the idea of tax rises. The message from across the board is that, Brexit or no Brexit, businesses are already carrying their fair share of the tax burden, and that if any party follows the Conservative party’s lead in breaking a 2015 promise not to raise taxes, VAT or National Insurance, it’ll be one break too many. Alas, the fact that both Labour and the Lib Dems have already dropped
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manifesto hints about either VAT or higher-rate tax, or both, suggests that there isn’t any safe haven from that worry. All hail, then, to the BCCI, which jumped the gun by issuing its own “election manifesto” well ahead of the political parties. “Taxes on employment, premises, and overheads are sapping business investment and growth potential,” it said. “Unchecked, they will act as a drag on their future productivity.” So far, so predictable. But what’s this? The BCCI called upon the government to commit to introducing no new upfront taxes until 2022; to take steps to ensure that employers would have uninterrupted access to foreign talent; and, not least, to achieve a “radical, root and branch reform” of the business rates system, which it says is not just the most onerous in Europe but also the most patched-up and inconsistent. And a wholesale reform of corporate tax allowances that excludes plant and machinery from rate valuations. Only in this way, it says, will we achieve “a globally competitive business environment”. Export licence issues and WTO Far more worrying, especially for larger (if not smaller) enterprises, is the prospect of a hard Brexit if it means that Britain’s Single Market entitlements disappear at the end of the 24 month Article 20 process without anything being agreed to replace them. The fallback position here would be that Britain would revert to World Trade Organisation rules and tariffs, which are onerous and awkward and which would
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take many years to replace or renegotiate. As business leaders tend to crumble, the issue here is not merely that a hard Brexit would risk leaving manufacturers unable to forward-plan their pricing, buying or supply structures as the evil day approached; it would also make it quite impossible for them to finalise any expansion or jobcreation projects during the next two years. Why would you want to build a new car assembly plant, they ask, when a change in the European system of employment rights might see the whole operation moved to Slovakia at the last moment instead?
probable casualties of the Single Market withdrawal unless Theresa May can really pull something very extraordinary out of the hat. As Michel Barnier, the EU’s chief Brexit negotiator, insists, the Banking Passport is an integral part of the Single Market, and apparently we can’t have one without the other. But unless we can accept the freedom of labour movement that goes with the Single Market, neither is likely to materialise.
The City and the banking licence
Chancellor Philip Hammond is said to have gone right to the edge of confrontation with his appeal to his boss on the banks’ behalf, and several of his colleagues are reported to have proposed that Britain should buy some sort of special access to the Passport, perhaps by covertly funding some other European project that wouldn’t attract too much media attention. But in March the PM was clear. No Single Market, she said, and no kidding. Brexit means Brexit. And even the idea of “equivalence” (whereby British institutions would gain a sort of de facto market access on the grounds that our system is near enough to the EU and MiFID II norms) doesn’t seem to have Downing Street’s ear.
But it’s the European Banking Passport which looks like becoming one of the most
What can be done? London is hoping that if Mrs May can stand her ground, equivalence
Scotland and Ireland bring two more complications to the task - not least because the former is still adamant that Brexit would produce an Indyref2 vote which might result in a ‘hard’ border (always assuming that Scottish banking jobs don’t simply migrate to Paris – see below.) And the latter because there will indeed need to be a hard border between Belfast and Dublin, if only to stop the leakage of EU products and services. (And, conceivably, manpower.)
But it’s the European Banking Passport which looks like becoming one of the most probable casualties of the Single Market withdrawal unless Theresa May can really pull something very extraordinary out of the hat
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might still be forced through. But City sources say that it’s quite hard to see why the 27 would want to give away a unique opportunity to usurp London’s leading role in European finance; certainly, France’s new President Emmanuel Macron has been quick to insist that he isn’t in a mood to give any ground. So what’s the present position? Well, as we were going to press a new report from EY came in which declared that easily a quarter of the 222 financial service firms being studied by its Brexit tracker were actively considering the removal of resources or, in some cases, entire domiciles, across to Europe in the event of a hard Brexit. What was more sobering, however, that this was a 50% increase in the proportion of potential movers in the space of just four months. Fully 45% of the investment banks said that they were actively making plans, along with 27% of the insurance companies and 23% of the asset management groups. And although EY insisted that the moves would only be partial, and that the groups were still firm in their commitment to the London market, whose “financial ecosystem is unique and very hard to replicate in other European jurisdictions,” the inference for the Prime Minister is hardly to be ignored.
combined with a lack of oomph from Labour’s infantry battalions and a complete rout of UKIP’s remaining sniper positions, must have left the Prime Minister feeling sanguine about the approaching pitched battle with Brussels - even though the Liberal Democrats had been popping up all over the place like those perennial weeds that take a deep root killer to eradicate them.
What remains to be seen now is whether the British public, and especially the loyal but often troubled Conservative voters, can be persuaded to salute the flag
All was well, then, as the nation began its final gallop toward the 8th June general election. Of course, it didn’t really help that the PM decided to up the ante by alleging that Brussels was actively interfering in “her” election campaign by spreading
misinformation about her, the evil swines. And that rebuff from Brussels must have stung when David Davies declared that (a) the EU wasn’t the body that determined the structure of the Brexit process, and (b) Mrs May had the perfect right to talk to the Commission any time she chose to. Only to be told that (a) yes it was, and (b) no, under Article 50 she wasn’t allowed to be the one who picked up the phone. But these are mere quibbles in a world where politicians the world over have been taking their cues from Donald Trump. (“Be outrageous, create an oversized image of yourself, then step back and quietly change your mind.”) What remains to be seen now is whether the British public, and especially the loyal but often troubled Conservative voters, can be persuaded to salute the flag. As for the voteless business fraternity, though, it’ll be obliged to remain in its kennels on polling day and silently hope that the voters will force enough compromises on Mrs May to fend off its worst worries. Dog days indeed.
Onward, ever onward “So far so good” - as Prime Minister Theresa May could probably be heard to remark, as she surveyed the extremely favourable results of the 4th May council elections. A strong swing toward the Conservative Party army,
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CAREER OPPORTUNITIES Position: Financial Planner Location: Cambridgeshire Salary: £50,000 Due to an increase in workload, a leading IFA Firm is looking to grow its financial services team by adding an experienced IFA. The business has a well-established client bank network and is looking for you to come and support their growing business. This is a fantastic opportunity for someone wanting to work for a firm which prides itself on having loyal clients that have invested with them over 3 generations. This is an employed position, where you will be responsible for delivering a professional and reliable client experience, and achieving set targets in-line with the company’s strategy and operational goals. You will be provided with access to the latest in technology to aid you in your duties and all within an environment that is conducive to growth. You will have the opportunity to develop your skills and you will be supported to allow you to focus on looking after your clients and increasing your earning potential. Responsibilities: •
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Position: Senior Paraplanner Location: London Salary: £45,000 Are you an experienced Paraplanner looking for change? Do you have the important experience of working in an IFA environment writing bespoke suitability reports and liaising with clients and providers? If this is you, then on offer is a great position within a highly reputable IFA firm in Central London. You will be rewarded with a healthy salary and receive more benefits on top. The firm is looking for someone that is ideally Diploma qualified and has a wealth of industry experience. You could be a paraplanner looking for more of senior role within a company or looking for a new environment. Either way, you will be a key part and a valued member of the team, working alongside the business’ top performing financial adviser. Duties & Responsibilities: •
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Ideally you will be Diploma qualified in financial planning or will have made significant progress towards this qualification
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Position: Paraplanner Location: Wimborne, Dorset Salary: £30,000 A well-established wealth management practice requires a career-committed research professional who is dedicated to enhancing their knowledge, experience and skills in this area. 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. About the role: You will be required to analyse clients’ circumstances, objectives and existing financial planning arrangements in order to prepare appropriate recommendations for discussion with the adviser The role involves undertaking whole of market research, as required, on all areas of the market, including pensions, investments and protection, both on a client-specific basis and as part of regular reviews of the general market place Liaising with various members of the research team involved in risk and compliance, to ensure that recommendations and advice given to clients is compliant Provide high quality technical, administrative and research support to the advisers Provide input to the research manager on the suitability of new systems or procedures Assist in the development of less experienced members of staff Skills: •
Previous experience working within a similar role within an IFA Practice
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Level 4 Diploma qualified or a desire to work towards
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A high level of analytical capability with good communication skills and attention to detail, as well as the confidence to interact with clients and providers at all levels
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Committed to a career in research
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Good time management and the ability to organise and prioritise workload
Position: Paraplanner Location: Leamington Spa, Warwickshire Salary: £30,000 A fantastic opportunity has arisen for an experienced paraplanner to work within a well-established Chartered, independent, wealth-management firm. The successful candidate will provide ongoing support to one of the directors. The successful candidate will benefit from taking an active role in formulating strategies to deal with financial issues that arise at review meetings with his HNW client base. This position would be well suited to someone with a background which has specialized in taxation, investments and pre- and post-retirement planning. The successful candidate will benefit from a relaxed family atmosphere, financial support on learning as well as a generous package and company benefits. Main Responsibilities: •
Developing existing private client relationships in collaboration with the director
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Understanding each client’s circumstances, objectives, attitude to risk, capacity for loss, knowledge and experience and timescales to ensure advice is appropriate.
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Preparing research for client meetings.
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Accompanying the director to selected client meetings and completing agreed actions.
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Overseeing the analysis of clients’ existing investments and financial planning.
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Liaising with colleagues to assist the approval and submission of compliant new business.
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Providing regular updates to directors.
Key Skills and Personal Attributes - Experience/Qualifications essential •
Experience working either as a financial consultant or paraplanner.
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Extensive financial services knowledge and experience.
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Strong working knowledge of pre- and post-retirement planning (including pension transfers), investments and taxation is key to this role.
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Highly numerate and analytical in nature, with excellent attention to detail.
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Strong PC skills with good knowledge of MS Word, Excel and Outlook.
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Working towards or achievement of level 4 qualification
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Knowledge of research tools & software.
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Previous experience of working for an IFA
Position: Client -facing paraplanner Location: Milton Keynes, Buckinghamshire Salary: £35,000 A well-established wealth management practice in Milton Keynes require a career-committed research professional who is dedicated to enhancing their knowledge, experience and skills in this area. 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. About the role: You will be required to analyse clients’ circumstances, objectives and existing financial planning arrangements in order to prepare appropriate recommendations for discussion with the adviser
The role involves undertaking whole of market research, as required, on all areas of the market, including pensions, investments and protection, both on a client-specific basis and as part of regular reviews of the general market place Liaising with various members of the research team involved in risk and compliance, to ensure that recommendations and advice given to clients is compliant Provide high quality technical, administrative and research support to the advisers Provide input to the research manager on the suitability of new systems or procedures Assist in the development of less experienced members of staff Skills: •
Previous experience working within a similar role within an IFA Practice
•
Level 4 Diploma qualified or a desire to work towards
•
A high level of analytical capability with good communication skills and attention to detail, as well as the confidence to interact with clients and providers at all levels
•
Committed to a career in research
•
Good time management and the ability to organise and prioritise workload
If this specific vacancy is not exactly what you are looking for please contact us to discuss other opportunities we may be recruiting for that aren’t necessarily advertised; you can send your CV to this vacancy or contact us directly. Additionally, refer a friend or colleague to us and receive £200 in vouchers if we assist them in securing a new career.
Position: Senior IFA Administrator Location: Romsey, Hampshire Salary: £30,000 A fantastic opportunity has arisen for an experienced IFA Administrator to join a well-established financial services practice which provides a highly personalised financial planning and investment management service. You will be responsible for providing high quality support to the successful financial planners of the business and helping to maintain relationships with clients. Ideally, you will have exceptional attention to detail and previous experience working within a similar, fast-paced environment. Responsibilities: •
Providing high quality administration and analytical support to financial planners and their clients
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To manage your own workload and defer to senior account manager should workloads become too high
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Processing all private-client related new business and servicing queries
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Participating in meetings, conferences and seminars applicable to the role
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Liaising and building relationships with other functions/departments to ensure all aspects of development, change and ongoing activities are clearly communicated and absorbed in the company
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Ensuring all meeting follow-up work is completed within company timescales
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Previous experience in a similar role within an IFA Practice
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Good attention to detail and organisational skills
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Confident and competent communication skills, verbal and written
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Any financial services qualifications are desirable
Position: Trainee Paraplanner Location: High Wycombe Salary: £30,000 Are you a junior paraplanner looking for change, or an experienced administrator looking for a step up into a paraplanning role? A fantastic opportunity has been created to join a forward-thinking firm that deal with all aspects of financial planning. You will be in a junior paraplanner role with a company that offer exam support and puts an emphasis on personal development and career progression. The role will involve working with the other paraplanners within the firm to provide bespoke support to the firm’s financial planners. Responsibilities: •
You will be required to analyse a client’s circumstances, objectives and existing financial planning arrangements in order to prepare an appropriate recommendation for discussion with the adviser
•
Undertaking whole of market research, as required, on all areas of the market, including pensions, investments and protection, both on a client-specific basis and as part of regular reviews of the market place
•
Liaising with various members of the research team involved in risk and compliance to ensure that advice is compliant
•
Provide high quality technical, administrative and research support to the advisers
•
Provide input to the research manager on the suitability of new systems or procedures
•
Assist in the development of less experienced members of staff
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Previous experience within an IFA firm would be preferable.
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Ideally working towards the level 4 diploma in financial planning.
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Excellent communication skills and attention to detail
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Position: Trainee Paraplanner Location: Cheam Salary: £28,000 A well-established wealth management and financial planning practice requires a trainee paraplanner who is dedicated to enhancing their knowledge, experience and skills in this area. Ideally, you will have previous experience within the financial services industry, perhaps with a product provider - and be looking to take the next step in your career. You will benefit from full support and training within a welcoming and friendly office environment. Responsibilities: •
You will be required to analyse a client’s circumstances, objectives and existing financial planning arrangements in order to prepare an appropriate recommendation for discussion with the adviser
•
Undertaking whole of market research, as required, on all areas of the market, including pensions, investments and protection, both on a client-specific basis and as part of regular reviews of the market place
•
Liaising with various members of the research team involved in risk and compliance to ensure that advice is compliant
•
Provide high quality technical, administrative and research support to the advisers
•
Provide input to the research manager on the suitability of new systems or procedures
•
Assist in the development of less experienced members of staff
Skills: •
Previous experience within the financial services industry, perhaps with a product provider
•
Excellent communication skills and attention to detail
•
Ambition and drive to progress your career
•
Some financial services qualifications are desired
And also… If these specific vacancies are not exactly what you are looking for, please contact us to discuss other opportunities we may be recruiting for that aren’t necessarily advertised. Additionally, refer a friend or colleague to us and receive £200 in vouchers if we assist them in securing a new career.
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