With the election now called for July, we could well have a new government by the time I next write to you in our autumn edition of Prospects.
Now the campaign is in full swing, Investment Director Andrew Mann analyses the potential implications of a Labour win from an investment perspective here, while our guest editorial from Allen Simpson, longstanding adviser to the Labour Party, considers the wider political and economic impact here. No matter what the outcome, our Investment Managers will continue to adapt to the prevailing conditions in the manner that has always held the Firm in good stead throughout the years of rule under many governments.
Whoever takes the helm at number 10, they will have to contend with the same obstacle: managing the UK’s £121 billion budget deficit, the eighteenth largest since 1948. There are however many bright spots in the UK market and economy: at 2.3% in April, inflation is trending back down towards the desired 2% level – raising hopes of interest rate falls later in the year; and the FTSE 250, often seen as a barometer for the health of UK stocks as a whole, is currently keeping pace with the performance of the FTSE 100.
Regardless of a change in government, it is always prudent to review your wealth arrangements. Two areas of focus this edition are Capital Gains Tax and pensions. It might often be tempting to delay or avoid the sale of underperforming shares that would realise a tax on capital gains. Yet in some cases it could be wise to face the short-term pain of CGT to ensure that all the stocks held in a portfolio are earning their keep, as Associate Wealth Planner Charles Barrow and Senior Investment Manager Mark Rowe-Ham write here. With the recent launch of the new government state pension checking service, Ryan Gordon gives a reminder here of the April 2025 deadline to ‘top up’ National Insurance gaps that date back to 2006.
The seemingly unstoppable rise of the semiconductor chip is the subject of our editorial this issue: here, Research Analyst Henry Birt delves into the evolution of chip production that has led to the highly complex manufacturing process it requires today. As the world’s biggest economies vie with each other to lead the way in semiconductor development and production, geopolitical tensions have been triggered by this tiny device.
JM Finn has a long history of supporting the arts, and this year is no exception: the Firm is currently sponsoring the National Treasures Exhibition at the York Art Gallery, in celebration of the National Gallery’s bicentenary. The exhibition, which runs until 8th September, includes Claude Monet’s timeless classic The Water Lily Pond. 2024 also marks the fifth year of JM Finn’s partnership with The Affordable Art Fair UK, with a week-long May Fair in Hampstead and the Fair’s 25th anniversary event coming to Battersea this autumn.
I hope you continue to enjoy reading Prospects. For those of you who may like to hear from us in digital form, we regularly post content such as market commentaries and JM Finn news on our website. There is also a quarterly email newsletter available with a roundup of the key insights and stories on our homepage. If you would be interested to receive this, please ask your Investment Manager to be added to the ‘Insights’ mailing list.
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