Welcome to your autumn edition of Prospects. The summer months have traditionally marked a quieter period in the markets, but this year has proved to be anything but.
Equity markets across East Asia saw sharp drops in the first week of August and the Japanese Nikkei 225 Index erased all its gains since its rally earlier in the year. Indices in other markets in the Far East, including South Korea and Taiwan mirrored the declines; fortunately, most have recovered to early summer levels and Western markets have since found a firmer footing.
Among the key reasons for the tumble in Asian markets were concerns about lacklustre US economic indicators, and the potential for a recession in America that could impact other countries – a reminder of the wide-reaching effect that America’s fortunes can have on the rest of the world. This delicate link is a theme explored in Charles Bathurst-Norman’s editorial here, which covers the growing phenomenon of US ‘reshoring’ – the repatriation of supply chains that were previously outsourced predominantly to emerging markets.
A key question that will be answered between now and our next issue of Prospects, is who will emerge as the winner in this extraordinary US election campaign. Whatever the result, we continue to monitor market and economic developments and will keep our clients fully up to date. By the next edition, Labour’s Autumn Budget will also have been announced. Chancellor Rachel Reeves has already warned that the Budget may entail “difficult decisions”, also recently endorsed by the Prime Minister. While we of course cannot predict the changes it could bring, it is safe to say that tax rate increases are on the cards. As highlighted in our last issue of Prospects, Capital Gains Tax is in the spotlight and we are encouraging Investment Managers to look at possible action on portfolios on this front.
It can also be prudent to look at the timing of action plans if you are considering passing wealth on to your family and loved ones, as Charles Barrow from our Wealth Planning team explains here. The subject of inheritance and estate planning can be tricky to think about, let alone broach with family, but early planning can give you more options to maximise the amount that is passed on.
This November marks the 25th anniversary of The Affordable Art Fair – and the fifth year of JM Finn’s partnership as lead sponsor. In our guest editorial here, Will Ramsay, Founder of The Affordable Art Fair reflects on the changes in creating and buying art over the last 25 years – and the role the Fair has played in this, driven by the growth of the business to a global presence.
Scaling a company is among the challenges that will be familiar to the many clients who are business owners – and family-owned companies in particular can come with their own issues. In our Independent View article here, The Family Business Company tackles some of the most common hurdles that family firms can face, such as succession, governance and conflict management.
I hope you have all had a good summer despite the ordinary weather. Our Investment Managers have thoroughly enjoyed meeting many of you at the various client events we have hosted. We have many more in the pipeline for 2024 and 2025, so hope to welcome you to an event in the near future.
Hugo Bedford CEO
