Good morning and welcome to your Morning Briefing for Friday 25 August 2023. To get this in your inbox every morning click here.
Fund success
Some journalists like to draw analogies between sport and investment.
Here is one: a winning rugby team – much like a winning investment portfolio – needs a diverse mix of talent.
Liontrust roars
Some deals that fall through are good for your share price.
Liontrust’s failed takeover bid for GAM boosted its share price by 10.0% yesterday morning.
In a note Peel Hunt, a specialist UK investment bank, explained why.
Retirement dates
One of the milestones in life is retirement.
A firm retirement date obviously provides a clear focus for retirement planning but those in the advice profession say it is not essential.
What do you think?
Loading ...Quote Of The Day
August has been a washout for the high street as shoppers have turned increasingly cautious, with households’ budgets facing a big squeeze
– Susannah Streeter, head of money and markets, Hargreaves Lansdown on the tough retail climate
Stat Attack
Brits are trying to beat the cash crunch by diverting savings into emergency funds, new national research has revealed.
For many, however, the cost of living crisis and poor pay are making it hard to put away regular savings, the report by money.co.uk savings accounts reveals.
It looks at the top and worst performing cities as far as saving goes.
| TOP 5 CITIES SAVING THE MOST PER MONTH | TOP 5 CITIES SAVING THE LEAST PER MONTH |
| LONDON – £762 | NORWICH – £295 |
| SHEFFIELD – £706 | PLYMOUTH – £394 |
| LIVERPOOL – £706 | SOUTHAMPTON – £408 |
| BIRMINGHAM – £687 | BELFAST – £427 |
| CARDIFF – £686 | GLASGOW – £459 |
Source: money.co.uk
In Other News
The Pensions Regulator (TPR) has updated its guidance to help defined contribution (DC) schemes comply with new regulations designed to ensure they consider all the investment opportunities available to achieve best value for savers.
From 1 October 2023, trustees must state their policy on investing in illiquid assets in the statement of investment principles for their scheme’s default arrangements.
Illiquid assets are those that cannot easily or quickly be sold or exchanged for cash and include any such assets held in a collective investment scheme.
Louise Davey, TPR’s interim director of regulatory policy, analysis and advice, said: “Trustees have a duty to savers to act in their best interests. That means working hard to deliver the retirement income that savers expect, including properly considering the full range of investment options. Our updated guidance helps trustees make these often complex decisions.”
Trustees will also be required to disclose the asset class breakdown for each of their scheme’s default arrangements in the chair’s statement.
The new regulations have also removed a regulatory barrier that may have hindered trustees from exploring investment in certain funds that came with performance fees.
Since 6 April 2023, trustees have had the option to exclude specified performance-based fees from the list of charges falling within the regulatory charge cap limit of 0.75% per annum.
To ensure transparency, schemes must disclose in their chair’s statement any performance-based fees incurred in relation to each of their default arrangements, calculated as a percentage of the average value of the assets held in those defaults.
Trustees must robustly assess the extent to which these fees represent good value for their savers alongside other costs and charges.
From Elsewhere
Serious Fraud Office drops 10-year corruption inquiry into Kazakh miner ENRC (The Guardian)
The Nimby tax on Britain and America (Financial Times)
India and China agree to ‘de-escalate’ border tensions (BBC News)
Did You See?
Earlier in the week Kim Dondo dove into market trends and insights with special guest Michael Field, European Equity Strategist at Morningstar.
In this episode, they covered various topics that shed light on the current market scenario and provide valuable guidance for investors and financial advisers.
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