Business Development Updates

22 July 2018

Evidencing Capacity for Loss in Decumulation

Since pension freedoms, many retirees opt to remain invested using drawdown products, electing to shoulder various risk burdens including investment timings, market volatility, and longevity.
 
Yet when clients move from accumulation to decumulation there are different challenges, including the shift from a focus on risk appetite to capacity to absorb capital and income loss. The central question becomes – how do you advise clients who wish to enjoy a good income in retirement without running out of capital? The answer has been seen in terms of setting a single sustainable withdrawal rate. Just have developed a new Think Report which makes the case for new thinking on this issue.
 
A change in advice principles
 
A modern view of capacity for loss in decumulation is derived from a ‘principles’ based advice approach.
 
Pre-pension freedoms, the amount of funds available drove the product choice, with arbitrary fund limits in place before entertaining drawdown. Below this, and it was an annuity.
 
This simplified approach doesn’t really cut it anymore, now we see a split between ‘safety first’ and ‘probability driven’. This allows differentiation between retirement goals, requirements for longevity risk management, and evidencing capacity for loss.
 
Safety first
 
Step one is to establish the clients essential spending and ensure this is covered, typically with a guaranteed product which will typically tend to have a lower Sustainable Withdrawal Rate.
 
Probability driven
 
Then Step Two - to cover discretionary spending a ‘probability-driven’ approach is required – with funds placed in drawdown and clients talking on the longevity risk and a higher rate of SWR for this element of their capital. The Think Report includes a full case study showing how assessments of capacity for loss cannot be carried out in aggregate but must first look at client requirements for different income tiers.
 
Summary
 
Looking at capacity for loss in this way in decumulation pins down what the money is really for.
 
Taking income from drawdown can be complex, and demonstrates the part advisers play in managing client expectations.

This new Think report from Just looks at this issue in depth. You can read it here

11 July 2018

Introducing Orbis investments - they're different

You might not have heard of Orbis before - they’re quite new to the UK retail market – but their impressive 28-year track recordof delivering returns for institutions, pensions and high net worth individuals is definitely worthy of your attention.

Could their approach work for you?

Some find Orbis’ long-term and contrarianinvestment approach too different, and therefore challenging, but it might be right for you and your clients.

Do you believe that to outperform you have to invest differently?

Orbis looks for ideas in unpopular and ignored areas, digs deep into company fundamentals and aims to capitalise on short-term noise. Privately owned, their independence allows them to stand by their convictions so that your clients can benefit over the long term. 

Do you agree that fees shouldn’t be paid when a fund underperforms?

Orbis puts their money where their mouth is. A unique refundable fee structure means they’re only paid when they outperform the benchmark, and actually refund fees if they don’t.So their success depends on creating value for your clients.
 
You can access their two retail funds on most major platforms

They believe in doing only a few things, but doing them well.  Their two highly-rated Orbis OEIC Global Equity and Balanced Funds launched in 2014 are now available on most major platforms

Shared interests, shared success

Orbis believes in the value of good independent advice and looks to serve clients in partnership with financial advisers who aren’t looking for the usual solutions and who appreciate the value of long-term investing, done differently.
For more information on how the Orbis difference can benefit your clients, don’t hesitate to contact your local Orbis representative, or visit their website. 

As you know, past performance is not a reliable indicator of future results.

03 July 2018

Compounding costs and opportunities lost

Research has shown that many clients see fees and charges as one off costs. They don’t necessarily realise that costs compound negatively and make it harder for them to meet their financial goals and aspirations. 7IM was a pioneer in making passive investments available to everyone. Last year, 7IM worked with Distribution Technology to create a range of three portfolios mapped to a range of risk profiles so that more clients don’t miss out.

 

Choice of funds
Three funds conform to Dynamic Planner risk profiles 4-6, and provide a solution for investors with a broad range of risk tolerances.

Dual expertise
Clients receive the combined expertise of Distribution Technology’s asset allocation and 7IM implementation, at a low cost and with rigorous risk management.

Risk targeting
Each fund is monitored on a daily basis by 7IM’s independent risk team to ensure that the funds stay exactly in line with Distribution Technology’s asset allocation.

High quality reporting
Quarterly reports are available via Dynamic Planner and can be white labelled for individual firms, allowing you to tailor each report to your client’s needs.

Competitively priced
The funds have very competitive OCFs of between 0.32% and 0.34%, which help advisers manage total costs for their clients, while having access to Dynamic Planner’s asset allocation.

Find out more here>>

02 July 2018

ESG event 18th July - full programme released

Secure your place at this key event on ESG - 18th July London - all the details here>>

21 June 2018

Managing income in retirement - new thought leadership paper from Just

In recent Adviser Home research we asked advisers to tell us their priority areas for content and information. Top of the list was retirement income so we are pleased to offer a series of thought provoking resources from Just, all focused on client income choices in retirement. 

Advisers, of course, place the highest priority on the issues facing clients in retirement; mitigating risk and preserving capital whilst delivering income.

It’s well established now that managing risk in retirement brings its own special challenges. Clients want the best of all worlds – access and control along with the reassurance that their money will last as long as they do. 

But in research carried out by Just, 57% of advisers still used the same investment strategies, for both accumulation and decumulation. 

The rigors of pound cost ravaging 

What’s required? - a robust advice process specific to decumulation with an investment strategy that can adapt to the post retirement rigors of pound cost ravaging and sustainability of income for life. 

A de-risked decumulation strategy also sets the scene for what lies ahead for retired later life, the vulnerability challenges, and changes to risk perception and capacity for loss. 

Advisers are at the centre of this revolution in retirement thinking; retirement will be a huge part of most people’s lives, and as such needs the focus, consistency and surety that a decumulation proposition can offer.

You can read more about this fundamental issue in this Think article ‘De-risking retirement income strategies.’   

18 June 2018

Is your clients business a main source of their wealth?

If so, business continuity and succession planning will be required as a core element in their wealth management programme. But do all your business clients appreciate the risks to their business? That’s where Aegon’s Introducer toolkit can help.
 
Understanding the need and the risks
 
Whether your clients are sole traders, shareholders in their own company or partners in a firm, you can use Aegon’s Introducer toolkit to help position the need for business protection cover without having to sell insurance-based solutions. The customer-facing toolkit covers: 

How does your business work? Risk assessment – impact and insuring the insurable. Probability – ‘It won’t happen to me’ and likelihood of death or illness. Questions to think about – to help uncover continuity and succession planning needs. 

Once your clients have worked their way through the sections above, you can then use Aegon’s Continuity and succession planning forms to help them identify their business protection needs.
 
Continuity planning - liability audit

Aegon’s Business protection liability audit is quick, easy and effectively highlights the need for cover. In particular:

the need for business protection cover to provide the funds to repay any business loans, and the money that would be needed should a key person die, become critically or even temporarily ill, or is totally permanently disabled, to:
– recruit a replacement person;
– cover the short-term loss of profit, or
– allow the business to continue paying and employing someone who’s unable to work.

 
Succession planning – referral form

This will help you help your clients understand the risks to their business – have they managed these risks and if not, what steps do they need to take? In just a few short questions, Aegon’s Succession referral form  gives you and your clients an essential check list as a bedrock of business risk management – a keystone in your clients wealth planning.

Visit here to find out more about business protection.

11 June 2018

You are invited to:- Sustainable Investing - An Adviser Event

Who should attend?
In the US over $9 trillion professionally invested assets are in Sustainable Investments. It’s long been a core subject in Europe and now in the UK is one of the biggest growth trends and  moving firmly into the mainstream as every fund has to answer the question “ What is your ESG policy?"

This event is for financial advisers / planners and wealth managers interested in sustainable investing and its place in client portfolios. We will discuss sustainable investing from the perspective of asset managers but also what it means in practice for advisers and their clients. Whether you automatically embed sustainable investing in your client’s portfolios, or only do so on request this event will help your business and your clients.

What’s on the agenda?

ESG – an over view, how it’s developed in the investment world Embedding ESG into the investment process Does a “good” fund mean a reduced return? Elements of Sustainable Investing – different approaches Consumer and investor attitudes – trends and developments What do consumers think - global consumer trends in sustainable investing How can advisers build ESG into their portfolios? Impact investing – influencing company behaviour through investment Environmental funds Discussion  throughout and panel session including advisers active in this market

Who will be presenting?
The event will be chaired by leading commentator John Lappin and we will have presentations from:-

BMO Global Asset Management M&G Investments Pictet Asset Management RLAM Schroders Hawksmoor

Where is it?
City of London Club 19 Old Broad St London EC2N 1ER

When?
July 18th 08.30 arrive for coffee. Sessions start at 09.00. Lunch is provided then depart by 14.30

To secure your place
This is an adviser only event and places are limited.Register here>>

01 June 2018

Prudential launches a new Life Events hub

Recognising that it’s important you’re there for your clients at key milestones they reach and challenges they face, Prudential have launched a new Life Events hub.
 
It gives easy access to a host of material that can be used when supporting clients:

going through a divorce getting married or remarried looking to leave a legacy that have received a windfall are planning for retirement doing some intergenerational planning

 
Prudential will continually add new support to the hub, so make sure you save it as a favourite and visit regularly.

Go to the Life Events hub

02 May 2018

Webinar: The Evolution of the Managed Portfolio Service - and the value to your clients and your business

Join George Cliff of Clever Adviser* and Ash Weston of 8AM Global* on the 8th or 10th of May at 9:30am for a discussion on new developments in managing model portfolios. The session will last around 25 minutes and will cover:
 

Your Central Investment Problem – how can we help? The growth in popularity of MPS – why advisers are making the switch Managed Portfolios and MIFID II – the requirement for transparent, robust and repeatable investment processes How using an MPS can increase your value to your client, and decrease your admin workload New Advances in technology – the evolution of the CleverMPS

 
Register Now – choice of days
 
8th May 9:30am Register here>>
 
10th May 9:30am Register here>>
 
 
Note Unstructured CPD certificates will be issued to all attendee’s.
 
*Since 2010, Clever Adviser Technology Ltd (Clever) has been developing data driven technology that aims to strip human emotion from the investment process. Clever now offers two investment propositions, CleverAdviser and CleverMPS, both of which are driven by a highly sophisticated software system that uses proprietary data and complex computer algorithms, rather than human judgement, to select and monitor funds.
Clever have Partnered with 8AM Global who are administrating and looking after the day to day running of the model portfolios.

18 April 2018

The adviser guide to Sustainable Investing - One click to access your copy

 

 

This Adviser Home guide – developed by independent commentator, John Lappin, is an excellent practical overview on sustainable investing. You can see your copy here

Guide contains interviews with 6 leading fund managers – experts in sustainable investing and ESG Views from 6 financial advisers – how do they approach clients on this and how do they integrate sustainability into client portfolios Input from specialists investment consultancies – on issues and trends Designed as an educational guide for advisers – a market overview rather than a product pitch

 

Access the Sustainable Investing Guide here 

11 April 2018

Your edition of Rathbones Investment Insights Q2 2018

Headline points:-

•    Inflated expectations - Concerns that inflation is about to take off appear unjustified 
•    Trade wars -  US tariffs could end up biting the hand that feeds the consumer
•    Portfolio ‘protectionism’ - How diversification in multi asset portfolios can help returns through all conditions. Using alternatives to generate uncorrelated returns
•    Good value or value trap?-  Rathbones believe UK equities look attractive across various valuation measures

This review also includes an overview from Julian Chillingworth, Chief Investment Officer and a summary of the key trends across financial markets.

To access the full report click here>>

 

23 March 2018

Octopus Live 2018: Could you be helping more clients save inheritance tax?

01 March 2018

Win an Apple watch or 350 pounds John Lewis Vouchers for completing this census questionairre

This is the 6th annual census from BWD on salary and benefits in financial services. .

The census report is now in its 6th year and has become a definitive reference guide for the financial services sector. Showing trend data and up to date information on salaries and benefits. The report, available to you as a respondent allows you to compare your own remuneration and benefits with your peers. 

NB This is designed as a comprehensive census – not just a research exercise – so it’s important that you take part.
 
Should I complete this?
 
The majority of respondents are financial advisers and planners – so yes!
It’s also open to ParaPlanners, Compliance and Administration staff as well as company BDMs.

The benefits of taking part

The main benefit to you is that we will send you the final report (at no cost) so you can see where you stand against averages for the sector and for the role you hold. This is a detailed report and covers, total earnings, salaries, bonus basis and amounts and employee benefits in detail.

In addition, BWD will include all respondents in a free draw to win an Apple Watch or £350 in John Lewis vouchers. 

PLEASE NOTE: Your answers will be treated in the strictest confidence. All survey results will be completely anonymous to protect your personal data, in accordance with current Data Protection legislation.
 
Complete the Census now
 
You can complete the Census here   - could you respond as soon as you can and 7th March at latest.

Thanks for taking part – it’s very much appreciated.

26 February 2018

Make things simpler with Prudentials Extracting Company Profits tool

Prudential are well known for their suite of tools and calculators, which can help generate discussions with your clients. One of their most popular tools just now is the Extracting Company Profits one.
 
This tool allows you to sit with clients and discuss the different options they have for extracting profits from their business. You can input a client’s current remuneration structure and highlight how adjusting this structure might benefit them, possibly mitigating the tax and national insurance payable to HMRC.
 
Access the tool here>>
 
Other support on offer
 
Watch a webinar that pulls out pointers which will help when you’re using the tool and allow you to get the most out of it. Watch the webinar>>
 
Read more on Taking profits from a Limited Company. View>>
 
You can see Prudential’s full range of tools and calculators here>>

17 February 2018

The case for switching energy supplier

Until recently inertia ruled this market and energy suppliers were for “life”.  But now it’s a more open market and that has to benefit the consumer – both business and domestic.
 
If it’s some time since you last reviewed energy supplier then you may be interested to see how things have moved on in terms of both price and service. In which case can we suggest you check out Octopus Energy – these links will allow you to request a quote. The case for making sure your energy supplier meets your needs applies equally to your business and your personal supply.
 
Business Energy?
 
Ask for your business quote  click here
 
If your business account is managed by a colleague, would you please forward this on to them?

Home Energy?
 
If you run your business from your home, or you’re interested in getting a quote on your domestic bill, click here
 
If you do decide to switch,  the process is easy and quick and won’t affect your supply flow. 
 
What do people say?
 
Here are a few comments from new clients of Octopus Energy who are of course also committed to renewable energy sources.
 
Oliver, St Paul's Mews Residents Association
“We’ve never switched a business account before – the research I did suggested that switching would be long & hard, but with Octopus it really wasn’t – so I was really pleased! I just contacted you guys and you did it all. Brilliant really.”
 
Jeyoon, The Big Group Ltd
“We switched to Octopus because of the savings they’ve made for us, but it’s also brilliant that our offices are now powered entirely by renewable energy. Great stuff!”
 
Espen, Hanoy Ltd
“The primary driver for my business is the service I’ve had from you. It’s made everything so much easier. The fact that there’s a person I can email at any point is brilliant, rather than waiting for a call centre.”
 
Claire, The Jolly Barber
“I’m so glad I changed…I love the fact that when you ask for my meter readings I don’t have to remember my login details I just pop the readings in the email. Job done, love it”
  

30 January 2018

Client tax planning. Support is on hand from Prudential

Get your questions answered

To help manage client queries in the run up to the end of the financial year, Prudential’s Technical Team have put together answers to the most common tax planning questions they get asked by advisers.

Top adviser tax planning questions. View here>>

Looking for some different tax planning opportunities to explore?

Visit Prudential’s tax year end hub for a host of ideas. There’s a number of business development articles in the tax year end dedicated Oracle or you can listen to their tax year end webinar, presented by their highly-regarded Technical Managers.

Read or listen here>>

Tools and calculators

Prudential have a choice of tools and calculators, designed to make your life easier when you’re helping your clients with their tax planning. 

View the range of tools and calculators here>>