The Morning Briefing: increase in the venture capital portfolio and self-control of online advertising

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Hello and welcome to your Morning Briefing on Tuesday January 11, 2022. To receive it each morning in your inbox, click here.


Venture capital energizes portfolios

Research from Hardman & Co shows that adding venture capital (VC) to a portfolio can improve its risk / reward profile.

It also suggests that venture capital may be suitable for investors with a low risk appetite as well as those with a high risk tolerance.

Of course, this requires advisers to look at asset allocation holistically.

Hardman & Co, Head of Improved Tax Research, Dr Brian Moretta spoke to Money Marketing about what his research revealed.


Self-monitoring of online advertising will not be enough

The problem of fraudulent online advertising has been brewing for years now, but it really is the last couple of years that we’ve seen a dramatic upturn in business, especially with ads that feature identity theft of an employee. financial services company.

As early as March 2020, Andrew Bailey, then CEO of the FCA, described the challenge of tackling fraudulent online advertising as like playing a game of ‘whack-a-mole’.

Hindered by the perimeter and lack of legal powers, the only weapon in FCA’s arsenal is a website warning and the hope that their own ads warning people of the dangers of online ads that are “too good to be true to be true.” Be seen by people before it’s too late.


Guarantee competitive investment markets

The Financial Conduct Authority has planned two market studies to ensure that investment markets are competitive.

In response to a call for papers, the FCA heard concerns that limited competition in the benchmark, credit ratings and trading data markets could increase costs for investors and affect investment choices. .



Quote of the day

The Omicron Covid variant may have resulted in more restrictions, but the economic recovery nonetheless remains resilient, meaning stocks don’t seem particularly vulnerable to a correction

Luca Paolini, Chief Strategist at Pictet Asset Management, comments on Omicron’s impact on equities



Statistics attack

More and more advisory firms and wealth managers are buying investment firms on advisory platforms, according to data released by the Association of Investment Companies (AIC).

2,157

Number of companies that bought investment companies via advisory platforms in Q3 2021

1 983

Number the previous quarter

2.014

The previous record was set in the third quarter of 2016

£ 968 million

The value of purchases of investment companies in the first nine months of 2021

£ 754 million

A 28% increase over the same period of 2020

The most purchased investment company sectors in Q3 were:

17%

Global

11%

Flexible investment

seven%

Infrastructure

6%

UK Equity Income

4%

Asia Pacific

Source: AIC and Matrix Financial Clarity



In other news

Tilney Smith & Williamson (TS&W) has expanded its team in Exeter by appointing two financial planners. Mark Newman and Stephen Read join TS&W office at Sterling Court.

Newman joins TS&W after working at Kelsall Steele Investment Services as a senior financial planner.

At TS&W, Newman will focus on covering Cornwall. He is also a certified member of the CISI.

Read comes from Succession Wealth where he worked as Director of Mergers and Acquisitions. His previous experience has enabled him to progress through a series of corporate finance, treasury and accounting positions at energy, technology and investment companies in the UK and Switzerland.

He is a member of the Personal Finance Society and the Chartered Institute of Management Accountants.


ZEDRA announced the acquisition of PTL, an independent pension trustee and provider of governance services.

Founded in 1994, PTL acts for both defined contribution and defined benefit pension plans, group living trusts and healthcare trusts.

This acquisition, which follows the acquisition of Inside Pensions in 2021, strengthens ZEDRA’s pension services in the UK.

ZEDRA’s pension services now consist of five offices in London, Reading, Leeds, Birmingham and St Albans and grow their workforce to 70 dedicated pension experts and support staff.


Baillie Gifford has appointed Ross Mathison as portfolio manager of its Global Income Growth fund and its Responsible Global Equity Income fund.

He joined existing managers James Dow and Toby Ross on the funds on January 1, 2022.

Mathison started working for Baillie Gifford in 2019 as an investment manager. He was previously with Aviva Investors. Previously, he spent nine years with Standard Life Investments.

The £ 814million Baillie Gifford Global Income Growth fund aims to generate income and capital growth over rolling five-year periods, while delivering a higher return than the MSCI ACWI over rolling periods of five years.

The £ 312million Responsible Global Equity Income fund seeks to invest responsibly in companies capable of generating both a resilient income stream and real income and capital growth.


Premier Miton Group said its assets under management (AUM) ended the quarter at £ 13.9 billion.

In an update to its unaudited statement of assets under management (AUM) for the first quarter, the group said the closing AUM includes the previously announced liquidation of £ 101million Acorn Income Fund Limited and 87million of pounds sterling in net outflows.

Managing Director Mike O’Shea said it was “disappointing” to record net outflows after four quarters of net inflows totaling £ 830million.

However, he said, the net flows reflect a “difficult time” for UK fund flows in general, and UK stocks in particular.

“It is important to note that our investment performance remains strong, with 80% of funds in the first or second quartile of their respective sectors since their launch or their tenure as fund manager, with good performances from both our more established funds and our new funds. “

The group also announced the launch of the Premier Miton Diversified Sustainable Growth Fund on March 1, 2022, managed by the same investment team behind the existing range of five diversified multi-asset funds invested directly.

The fund will focus on investments with a strong environmental, social and governance (ESG) profile and those that we believe offer longer-term sustainable growth themes.



Moreover

Minimum wage increases not enough to protect the poorest from rising prices (Financial Times)

Dollar stuck as traders wait on Fed’s Powell for new political clues (Reuters)

New mortgage deals cost hundreds of pounds more just weeks after rate hike (The Telegraph)


Have you seen?

Despite the consensus on the value of advice, the issue of affordability naturally generates disagreement, with many players in the advice industry falling into one of two camps:

  • Those who believe that it is impossible to provide “affordable” advice due to the regulatory burden on advisers, such as the charges from the Financial Conduct Authority and the Financial Services Compensation Scheme and the costs of professional liability insurance (PII)
  • Those who think about technology and automation, such as robot advice, digitization and hybrid advice, could provide free or low cost advice to the mass market.

In his cover story for Monetary Marketing, Momodou Musa Touray says the emphasis should be on demonstrating value, building trust and using technology to “democratize” this vital service.

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