With only weeks to go until our first Autumn Budget on 22nd November, there are already rumours surrounding what’s to come. It will be interesting to see if Phillip Hammond sticks to his statement of ‘No other major economy makes hundreds of tax changes twice a year and neither should we’.
Under pressure, there is mounting speculation that Hammond is set to deliver a Budget that appeals to the younger population, potentially by cutting tax relief for higher rate tax payers. When his Tory peer, Lord Willetts was asked his opinion on these rumours in a recent BBC Radio 4 Today Programme, he responded; ‘A lot of older people themselves worry about the financial situation of their children and grandchildren.’ This is a message we too have been hearing more and more over the past few months.
As the chancellor explores his options, he will be acutely aware of the limited ability of the UK economy to generate increased tax revenues. All we can do now is wait until November 22nd to see what this really means for us all, a date when our very own Gavin McGhee, Senior Investment Consultant from St. James’s Place will be offering an insight. Details of how you can attend our event in Gloucester can be found later in this letter.
A Digital Outlook
During the past few months, we at Quayside Wealth Management have tried to play our part in reducing our paper usage, which may be music to your ears. This of course does not mean we’re losing our traditional values and we do appreciate that you may still prefer to get a letter through the post rather than another email in the inbox. We have no intention to become a fully paperless office, but always welcome feedback on how we communicate with you and adapt accordingly.
The move to go more digital also brings in some exciting new tools to allow us to demonstrate the impact of the advice we are giving or in fact intend to give. This helps to bring to life the financial life plans we are tasked to build, demonstrating personal investment returns and assisting with rebalancing investment portfolios.
You would be forgiven to think that this is no big deal as the whole world is moving in to a digital age, however, in financial services it is a big deal and we’re pleased we’re able to do this alongside our current proposition. Research has shown that 60% of people agree with the statement “Personalised customer service is important and you can never replace that with technology”. So, have no fear, we won’t be sending in robots to speak with you anytime soon.
The World in Unrest
With North Korea rocket testing, Trump being challenged both home and abroad, economically and environmentally, and a season of tragic unprecedented natural disasters in multiple States in the US, the Caribbean and Mexico, it would be easy to assume that global markets have been volatile in this past quarter.
In truth however, volatility remains low. In 2017, there have only been four days when the S&P 500, the world’s leading index, has dipped by more than 1%. That makes 2017 the calmest year (thus far) for the index since 1994.
Times of low volatility can unearth additional challenges for fund managers. Jamie Cumming from Aberdeen Asset Management, who manages the Ethical Fund recently commented ‘To navigate these markets, we continue to manage the portfolio by investing in good quality companies at attractive valuations: diligently monitoring our holdings’ business and financial performance, while maintaining a long-term perspective of their potential.
It could be argued that at times when volatility is low, the performance of the fund managers has never been more important. Thankfully we have confidence in the Investment Committee and the work they do to ensure we have the best fund managers globally managing our clients’ money.
Quayside and you…
Looking back over the year, we have continued our commitment to ensure our knowledge is relevant, that we deliver on the service we promise and that we fulfill our corporate social responsibilities. To demonstrate this, everyone in the practice took part in a grueling fundraiser and continues to work towards their professional qualifications. We also welcome a new member to the team.
In June, we completed a 24hr Paddle Boarding event raising £2,497.91 for the Pied Piper Appeal with a further £4,272.00 of match funding being raised for the St. James’s Place Charitable Foundation3. Both fantastic organisations and deserving of the donation. A big thank you must go out to all those who supported us on what was a very challenging but surprisingly enjoyable experience.
In March, at our last seminar we expressed a commitment to intergenerational planning. Since then, Andrina has passed a qualification furthering her knowledge surrounding Care Fees planning and Inheritance Tax planning supporting our vision to assist you and your families.
Alex has also been studying for an Advanced paper in Corporate Financial Planning as he quite often finds himself working with businesses across the county. Jess has also been continuing with her qualification in Administration.
Finally, we welcome Olivia Wike as our new Client Manager. Olivia has previously worked in a variety of roles including event management and recruitment during which time she has built up strong communication skills and is committed to providing a high level of service in all areas of her work. With both experience in organising events together with her calm and practical nature she will ensure that the Practice continues to run in a streamlined manner.
Upcoming Client Event – 22nd November 2017
We would like to take this opportunity to remind you of our next event which will be held at the Parliament Rooms, Gloucester Cathedral. Gavin McGhee, Senior Investment Consultant at St. James’s Place will be giving a talk on “Challenges and Opportunities in the Current Economic Environment”. You may be thinking the date looks familiar… As this falls on Budget day itself, Gavin will be discussing the challenges and opportunities facing investors in today’s current economic market and giving us an overview of the very first Autumn Budget from earlier that day. Please RSVP by email or call the office if you would like to attend.
Fund Manager Changes
Finally, earlier in the year St. James’s Place announced some exciting developments for 2017 and the final quarter sees the next phase of enhancements to the Investment Management Approach. We are happy to provide you with as much information as you require regarding the full breadth of these developments. One particular highlight that we would like to mention in this letter is the launch of a new Japan Fund.
The Investment Committee believes that Japanese equity markets present an interesting long-term opportunity for investors with a suitable risk appetite. Following a detailed search and selection process, the Committee has recommended the appointment of Nippon Value Investors (NVI), founded in 2005 and based in Tokyo. Led by Yoshihiko ‘Yoshi’ Ito, the investment team at NVI comprises four seasoned investors, three of whom have worked together since 1999. At launch, this fund is only accessible in the UK via St. James’s Place.
For more detail regarding anything contained in this letter or to provide us with much welcomed feedback please do get in touch. We look forward to seeing you soon.
Alex Kell & Andrina Nisbet
The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.
Equities do not provide the security of capital associated with a deposit account with a bank or building society.
The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.
Links from this website exist for information only and we accept no responsibility or liability for the information contained on any such sites. The existence of a link to another website does not imply or express endorsement of its provider, products or services by us or St. James's Place. Please note that clicking a link will open the external website in a new window or tab.
1. Legg Mason Global Investment Survey – www.leggmason.com/gis
2. www.sjpinsights.co.uk/article/market_bulletin_16_10_2017/quaysidewealthmanagement [accessed 3 November 2017]
3. www.sjpinsights.co.uk/article/fund-manager-quarterly-commentaries-september17/quaysidewealthmanagement [accessed 3 November 2017]
4. The Pied Piper Appeal – www.piedpiperappeal.co.uk Registered Charity number: 1011611; The St. James’s Place Foundation -www.sjpfoundation.co.uk Registered Charity Number 1144606