Jenny Banks CFA, FCA

A brilliant article that is a must read for all Business Owners and High Earners 🙌 It's important for these individuals to take advantage of all the reliefs and allowances available to them, and doing so in the most tax-efficient way

7

In our latest LDI Alert, Amy Trainor explains why US corporate DB plans may have a rare and limited opportunity to derisk and offers suggested action steps. #LDI #CorporateDB #pensions Learn more: https://lnkd.in/g36ftgGt

9

Just shared an eye-opening discussion contrasting active vs. index funds! 🏦 Discover why your pension plan or IFA might decide to select higher-cost, poorly performing funds 🤔 💡 #Investment #Finance

3

1 Comment

Year-end #Results for Scottish Mortgage Investment Trust PLC UK have been published 👇 👇 👇 Headlines: ➡️ Scottish Mortgage delivered a share price return of 32.5% over the year, rising 46% from a mid-year low. ➡️ Concerted action on buyback led to discount narrowing to 4.5% at financial year-end ➡️ The Managers added five new holdings and provided follow-on funding to eight private companies. The full annual report should go live next week. Capital at risk. #InvestInProgress #LongTermInvesting

2

Five pension considerations for directors and executives The more you earn, the more you stand to gain by taking full advantage of the tax reliefs and allowances available to you. Seeking expert financial advice can help you make sure your money is working as hard for you as possible. #retirementplanning #pensionplanning. #trustedadviser

1

Maple Index Market Consultation response is now out: "FTSE Russell has carefully considered the comments received as part of this consultation and announces that newly issued Maple bonds will be included in the FTSE Canada Universe Bond Index, effective January 1, 2025. Maple bonds that are issued and settle on or after this date, and meet other index eligibility criteria, will be included in the index." Results of the Maple consultation: https://lnkd.in/gUvmJary

12

2 Comments

Affirmation of our great work in sustainable investment! 🙋‍♂️🙋‍♀️ A couple of impactful highlights; 💚 The Mercer Master Trust is far ahead of our required pathway to hit our 2050 net zero target. By the end of September-2023, we saw that for assets in the growth phase of the Mercer Master Trust default, carbon intensities are 39% below Dec-19 baseline levels. Even more progressed are assets at retirement, with carbon intensities 45% below Dec-19 baseline levels, already hitting 2030 targets. 🌲 We have also recently reviewed all benchmark indices being used for our Master Trust solutions. We changed to Climate Aware benchmarks for some of our higher-emitting passive solutions resulting in a 33% reduction in our passive Infrastructure fund’s WACI and a 59% reduction in our passive Low Volatility Equity fund’s WACI. 🔰 “Mercer is committed to achieving net-zero carbon emissions by 2050 in our multi-asset funds used across Mercer SmartPath™ and self-select fund range. Our goal aligns with the Paris Agreement’s target of limiting global temperature increases to 1.5°C… To reach our target, we plan to reduce portfolio carbon emission intensity by at least 45% from 2019 levels by 2030.” #mercer #sustainableinvestment #mercermastertrust #esg #netzero

14

An interesting article in Citywire this morning by Henry Cobbe, CFA (see below). https://lnkd.in/einXyGNY It would be remiss of me not to make the following points: 1) Public markets 'discount' (take into account) known recurring expenses. Take two listed closed-ended investment companies ('investment trusts'): A and B. Both Boards employ investment advisers who invest the trust's capital in identical cash deposits bearing 0% interest. Let's assume a 5 year management contract. A's adviser charges 1%, B's 2%. Will the share prices be the same? Of course not. B's share price, all other things equal, will be c. 5% lower to account for higher fees over the life of the management contract. Investors invest in the share price NOT the NAV. Expenses are a drag on the NAV NOT the share price. It has to be so otherwise there would be a risk-free arbitrage to short B and long A. It is inappropriate to treat these expenses in the same way we do the ongoing charges of open-ended funds and aggregate them in total cost figures (whether that's a fund of funds or a wealth management portfolio). Platforms should also not disclosure the figure to retail investors in this misleading way. Look what happened when BH Macro upped fees by 1% - the shares fell by c. 10% to discount the increased drag on NAV. I went into more detail on these issues in the below blog, and show why it is appropriate to aggregate ongoing charges of open-ended funds, but not expenses of investment trusts: https://lnkd.in/eSiyEMn5 2) Mr Cobbe has deployed a straw man. I am not aware of anyone campaigning for no disclosure. First, there is and always has been, as much disclosure for investment trusts as there is for other listed corporate entities via UK Listing rules (the reports and accounts). Second, we have been campaigning for additional disclosure via our "Statement of Operating Expenses". This would surface operating expenses in an appropriate way, express them as a percentage of NAV (for use alongside other relevant information such as premium / discount) to enable cross-comparison with open-ended funds and other investment trusts. We recognise that investment trusts share characteristics with open-ended funds, and we need disclosures that recognise that. But some trusts resemble operating companies (and compete with them) more than collective investment schemes. Crucially, the listing on a public market is a key differentiating feature and matters hugely for how expenses are disclosed. Disclose. Don't Double Count.

42

45 Comments

The new 5 Stewardship Code "P"'s: https://lnkd.in/ewakFirb 💡Purpose - what is effective stewardship? 💡Principles - what reporting is necessary? 💡Proxy Advisors - how to support greater transparency? 💡Process - how to reduce the reporting burden and ensuring that reporting is useful and accessible? 💡Positioning - how to support clarity in understanding and implementing the revised Code? I welcome the consultation on these five proposed themes in the Financial Reporting Council's revisions to the UK Stewardship Code, and the immediate changes to reduce the reporting burden on existing signatories, providing more clarity and flexibility. As a signatory to the Code we very much support achieving and reporting on the highest standards of active ownership on behalf of our clients. Mette Charles #Aon #InstitutionalInvestment #StewardshipReporting #ActiveOwnership

3

Our latest analysis shows running a small DB pension scheme is 4 times costlier than a larger one. This cost gap is crucial for trustees and sponsors to weigh when deciding whether to continue the scheme or opt for a buy-out. Schemes below £250m are unlikely to persist solely based on economics. Laura McLaren commented “Running on beyond buy-out funding is likely to be expensive for small schemes. TPR’s 2014 research found that the mean cost of running a small DB scheme was £1,054 per member, compared with £505 for a medium scheme and £281 for a large scheme. Based on these numbers, our modelling suggests that for small schemes annual expenses are 0.55 per cent of scheme assets, compared with 0.13% per cent for large schemes. The practical costs and challenges of managing a scheme for another 20 years tend to be amplified for small schemes.” https://okt.to/cFzX1N #pensions #finances

14

Investment Insights - Durability and Data At RBC Brewin Dolphin Ireland we believe in the power of ideas to drive positive change and shape the future for our clients. Within our latest 'Insights' (see link below), my colleague Ian Quigley reflects on recent market strength, the rise of artificial intelligence (AI), and how we are thinking about potential AI ‘winners’. As ever, should you wish to discuss our views further, please do not hesitate to contact us. https://lnkd.in/gCmG_kp5 #ideashappenhere #rbcbrewindolphin #rbc #rbceurope #wealth #investing #privateclients #wealthmanagement #ireland #europe #artificialintelligence #ai

15

For those not lucky enough to be on our distribution list here is the latest outlook piece for the CFAM multi asset fund range.

61

1 Comment

By agreeing a Responsible Investment Policy and framework together with our partners. we achieve levarage across all our key collective functions - investment and reporting!

32

1 Comment

Delighted to discuss with Christian Mayes Portfolio Advisers Limited on why we like global small caps. An asset class that has been in the shadows of the mega caps (especially Magnificent 7) for some time, but where valuations are attractive and underlying operations on the cusp of improvement as peak interest rates are past and cyclical activity shows signs of potential recovery. https://lnkd.in/dxe32Czy #SmallCap #CyclicalRecovery #Diversification For professional investors only

15

Sustained higher interest rates since late 2022 have (for now) effectively ended pension funding relief that has been in place since 2012. Underfunded plans are likely to see sharp increases in required contributions in the next year or two. We expect most pension sponsors will use effective discount rates in the 5.0%-5.3% range to measure pension liabilities right now. https://buff.ly/3UeeDC5

4

A significant step forward in simplification and value.

5

It was a pleasure to sit down with Adam Lewis @Portfolio Adviser as part of their Meet the Asset Allocators series. I shared why we continue to believe in the principles of the 60/40 portfolio and its evolution with the inclusion of alternatives for greater diversification and uncorrelated returns, as well as how we define risk, value for money and the outlook for MPS. https://lnkd.in/eXSuPc63 #AssetAllocator #ParmenionInvestment #MPS #60/40Portfolio #Alternatives

3