Good morning and welcome to your Morning Briefing for Tuesday 27 February 2024. To get this in your inbox every morning click here.
Abrdn buoyed by platforms
Abrdn made a pre-tax loss of £6m in 2023, as falling revenue in its investment arm continued to bite.
Chief executive Stephen Bird said the group’s ‘adviser’ arm, which includes its platform business, and Interactive Investor, the D2C investment platform it purchased in May 2022, both increased profitability.
However, this was “more than offset” by falling revenue in its ‘investments’ business, “where market conditions had a substantial impact, as seen across the sector”.
Anti-social media
“I joined the financial planning profession in 2010. It’s fair to say that, prior to that, I enjoyed elements of social media,” says adviser Sam Sloma.
“My personal opinion is that social media was in its prime in the 2010s. There wasn’t so much hate, there weren’t verified accounts and people seemed far more attainable and approachable.”
Quote Of The Day
While great strides have been made in diversity over the last few decades, it is fair to say that progress is slower than many had hoped, and the industry remains dominated by men.
– Victoria Hasler, head of fund research at Hargreaves Lansdown, believes there is not enough diversity in fund management
Stat Attack
New research from Interactive Investor shows that an average earner faces a £1,533 annual shortfall as rising costs outstrip average wage rises.
£3,380
Between April 2022 to January 2024 the pre-tax median salary for a full-time worker increased by £3,380, according to ONS figures
£3,336
Meanwhile, mortgage costs increased £3,336 since 2022, for someone who bought an average-priced house in 2022, assuming a 60% LTV, based on Moneyfacts data for an average two-year fixed mortgage
£833
Food costs increased £833 for an average household since 2022
£744
while tax increased by £744.
£4,913
Costs increased almost £4,913 for mortgage, food and tax combined
£3,390
while average wages increased just £3,390,
£1,533
leaving an annual shortfall of £1,533
Source: Interactive Investor
In Other News
Shepherds Friendly, one of Britain’s oldest mutual societies with over 100,000 members, has achieved five top-three positions for Best Performing Providers in Defaqto’s Protection Service Review 2024 for the third year in a row, including three first-place positions.
The survey, which took place between August and September 2023, gave 294 financial advisers a chance to rank individual protection providers across ten categories of service.
Shepherds Friendly was rated first in the Provider strength and brand, Existing business administration, and Business development managers categories, and in the top three in the commission and renumeration and technical assistance categories.
The nearly 200-year-old mutual prides itself on being forward-thinking and member-focused, offering its UK-wide network of intermediaries a highly streamlined and personalised service coupled with industry-leading levels of support.
Laura Hassall, head of Sales at Shepherds Friendly, said: “We are proud to be setting the high standards that both our members and advisers have come to expect from us. To be recognised in this way by Defaqto and the intermediary market is a testament to our team’s hard work and commitment, especially alongside companies such as HSBC Life, Aviva and LV=.”
From Elsewhere
UK tax burden to hit record high regardless of Budget, analysis finds (Financial Times)
UK population growth gives Hunt a £25bn spending headache (Bloomberg)
February dip sends UK food price inflation to nearly two-year low (The Guardian)
Did You See?
It is widely agreed artificial intelligence (AI) is going to bring significant improvements to the way financial advisers work, says consultant Paul Miles.
But while it is very easy to write about the possible advancements and what might happen, this will be the first in a three-part series setting out exactly what an AI adviser will look like in three years’ time.
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