Our spring issue of Prospects marks the 50th edition since we launched the magazine back in winter 2012. Rather fittingly, US politics also dominated global news at that time with Barack Obama featuring on the cover ahead of his second term as President.
Thirteen years later, with the second Trump administration getting into its stride, the world is experiencing a huge change of order. So much historically taken for granted, for better or worse, is being questioned or turned on its head and this is likely to continue to play out in markets over the coming months.
One area of interest is the dominance of the Big Tech companies and their regulation and this is the subject of our editorial here. Whilst these firms seem to dictate both the headlines and drive global market growth, debate has long remained over the degree to which they should be permitted to monopolise markets without government intervention. Research Analyst Henry Birt explores whether Trump’s previous approach to regulation is likely to continue over the course of his new term.
Moving to government policy in the UK, the effects of last year’s Autumn Budget continue to be felt by many – particularly the planned changes to estate planning. More families will be caught by inheritance tax (IHT) as thresholds remain frozen, home values rise and personal pensions, (specifically SIPPs) are set to be brought within estates for IHT purposes from 2027. As a result, offshore bonds have found themselves in the spotlight as a possible tax-efficient vehicle for families looking to accumulate wealth in a tax-free wrapper, thus passing on more to their loved ones. Wealth Planner Clare Julian covers the risks and benefits of these investment bonds here.
Most of our clients will have received notification of our new investment strategies, which will see client portfolios falling into one of five risk profiles. This is a change to how we look at matching client risk tolerance to the investment approach, and we hope this will give you a better understanding of what to expect from your investments alongside more consistent return profiles.
On the theme of risk and reward, the ‘Independent View’ comes from our new partner, behavioural finance specialist Oxford Risk, here talking on the topic of understanding behavioural finance and the role it can play in helping individuals to determine the level of risk they are comfortable taking when investing. Oxford Risk provide our new Risk Tolerance Questionnaire which will help the basis of conversations on which of the new investment profiles to select.
In our investment market roundup series, our Head of Investment Office, Jon Cunliffe highlights a fundamental shift in policymaker thinking towards boosting GDP growth to reduce debt burdens, which should broadly support growth in equities this year. So, whilst we look ahead with some trepidation as the geopolitical landscape shifts around us, we also continue to see great opportunities for those prepared to invest on longer-term fundamentals.
Hugo Bedford CEO
