Investment Outlook - issue 2

Investment Outlook - issue 2

Invest 2 / Spring 2021

Investment Outlook The Latest Provider Support Offering insight into market conditions and adviser opportunities

Are Defined Benefit (DB Pension Transfers financial services’ most feared product? J pages 4 & 5

Special Features Investment Bonds and the Personal Allowance J pages 6 & 7 Client Vulnerability J pages 8 & 9

Other Features

FOR INVESTMENT PROFESSIONALS ONLY

Intergenerational Planning J page 14 How to find real yield in 2021 J page 30 Premier Miton INVESTORS

PERFORMANCE

PremierMITON DiversifieD INCOME Fund

PremierMITON Diversified Growth Fund

Available on Connect: Premier Miton’s no cost online portal

Also with this issue Fund Spotlight For your protection, calls may be monitored and recorded for training and quality assurance purposes. 0333 456 9033 Find out more:

premiermiton.com

CAPITAL AT RISK

FOR INVESTMENT PROFESSIONALS ONLY

Premier Miton INVESTORS

A diverse and dynamic investment approach

Investment team The investment team is led by Neil Birrell, who has over 30 years of investment experience. Investment decisions including underlying security selection are made within a group of Premier Miton’s specialist investment managers covering different asset classes, including UK and global equities, fixed income, property shares and alternative investments. Risks The value of investments may fluctuate which will cause fund prices to fall as well as rise and investors may not get back the original amount invested. These funds may experience high volatility due to the composition of the portfolio or the portfolio management techniques used.

Investment philosophy • The investment philosophy is that every investment decision, including asset allocation and individual holdings decisions, should contribute to the funds’ aims of generating long term growth or income and also to dampen volatility. • The investment team invests in different types of assets to diversify and reduce volatility. • Active management: the investment team believe actively managing the funds’ asset allocation and holdings will add value to investment returns over the long term. • One person can’t be an expert on everything: the specialist investment expertise and experience across Premier Miton’s investment teams are used for asset allocation and investment selection.

The illustration shows the asset allocation breakdown for Premier Miton Diversified Growth Fund. Each fund in the Diversified range has a different asset breakdown.

Other alternatives 8.5%

Europe ex UK equities 7.6%

Hedge funds 8.7%

Emerging market equities 7.5%

North American equities 19.4%

Alternative fixed income 6.2%

UK equities 24.3%

Convertibles 0.4%

International property shares 3.8%

Listed private equity 0.6%

Japan equities 3.1%

Asia ex Japan equities 0.6%

Other equities 1.2%

UK property shares 2.9%

Portfolio hedge 1.4%

Mortgages 1.7%

Cash 2.3%

Portfolio breakdown as at 31.01.2021. Allocation may be above or below 100% due to rounding.

0333 456 9033

Find out more:

premiermiton.com

For your protection, calls may be monitored and recorded for training and quality assurance purposes.

Invest 2 / Spring 2021

Investment Outlook The Latest Provider Support Offering insight into market conditions and adviser opportunities

Are Defined Benefit (DB) Pension Transfers financial services’ most feared product? J pages 4 & 5

Special Features Investment Bonds and the Personal Allowance J pages 6 & 7 Client Vulnerability J pages 8 & 9

Other Features

Intergenerational Planning J page 14 How to find real yield in 2021 J page 30

Also with this issue Fund Spotlight

Investment Outlook - Issue 2 | 3

Editor’s Forew0rd

Hello and welcome to our spring edition of Investment Outlook magazine. Aimed at all areas of the marketplace with contributions from internal departments keeping you abreast of activities within Tenet and showcasing our provider partners who deliver thought leadership, support, ideas and opportunities. The publication by the FCA of its Defined Benefit Advice Assessment Tool (DBAAT) provides detailed insight into the criteria the regulator used during its latest pension reviews. We look at the lessons that firms who operate within the DB space can draw from it and how Tenet Compliance Services can help going forward. Read more on pages 4 & 5. Bond surrender calculations have now become quite complex, especially since the introduction of further provisions within the March 2020 budget, which may require additional steps within the calculation. Technical Services & Research explore the key points which need to be considered. Full article pages 6 & 7. Over the next 20 to 30 years, there’s going to be a big wealth transfer down the generations. On page 14 Prudential covers the planning needs of different generations and the support they have to help you, help your clients transition that wealth, in a way that suits them. Viswanathan Parameswar, Head of Investments Asia at Schroders, on why they believe Asia will shape the 21st century, and command the attention of the long term global investor. Page 15.

On pages 16 & 17, Just’s Martin Lines considers the two distinct and differing approaches to drawing down income in later life: ‘Probability-driven’ and ‘Safety-first’. Could it really be that some of the world’s biggest polluters are ready to become part of the fight against climate change? ASI investigate. Read more from Aberdeen Standard on page 19. David Jane, fund manager for Premier Miton’s macro thematic, multi asset funds, explains emerging market equity has become a technology play and to gain exposure to emerging market economies, you must look much further down into these markets. Amid the volatility in markets last year, the Fidelity Strategic Bond Fund’s in-built flexibility to invest globally across fixed income markets saw it deliver high yield like returns but with half the volatility of that asset class. Page 21. As we continue to see underfunding and financial difficulties in funding our own care and that of our loved ones, on page 22 Key Group take a look to see if Equity Release could be an option in tackling the care crisis. Nick Hayes, fixed income portfolio manager at AXA IM, highlights the factors he believes are allowing us to look at prospects in the bond market with a renewed but cautious sense of optimism in 2021. On page 30, Liontrust’s John Husselbee presses the case for real assets as a source of income amid ongoing concerns about equity dividends and worsening conditions for bonds. William Lam, co-Head of the Asia & Emerging Markets Equity team at Invesco, outlines his views on what it means to be a contrarian investor and his investment process on page 31. I’d like to take this opportunity to thank Tenet’s key contributors and provider partners for their varied and excellent selection of content which I’m sure you’ll find an informative and enjoyable read.

Best wishes Cristina Giovanelli Marketing Consultant

4 | Investment Outlook - Issue 2

Are Def ined Benef it (DB) Pension Transfers financial services’ most feared product?

Investment Outlook - Issue 2 | 5

The FCA has published the DB advice assessment tool they used to conduct their recent pension transfer reviews, and recommends firms use it to understand how suitability should be assessed in this area of high regulatory scrutiny, but why?

How Tenet Compliance Services can help We believe that with the continued regulatory focus and volume of rule changes, the importance of advisers having access to expert support and reassurance is greater than ever. With an aging population and continued changes in the pension advice world, it’s important that advisors are able to confidently advise new clients and reassure existing ones. Within Tenet we have specialist pension transfer reviewers who are fully up to speed with all current rules and recent rule changes and have expert knowledge in respect of suitability, meaning we are here to help, educate and allow you to provide a better customer journey. Through our file review service, we can support you in identifying and mitigating any risks in this area of high regulatory scrutiny, or indeed in any other line of business. Our focus will always be on the suitability of the outcome, while ensuring all technical and disclosure aspects of the case are satisfactory. We can also support you in the writing of consistently high-quality advice going forward by carrying out a review of your advice standards and processes and by providing you with up to date information and CPD. This will provide both you, and your client, with the necessary peace of mind to face the future with confidence. If you would like an introductory informal chat to discuss how Tenet could support you in this area, please contact Marjolaine Quirke at [email protected] or on 07342 779555

However, firms may find the tool helpful in the event of a complaint regarding pre- October 2020 advice, and for conducting reviews of past cases. Given the continuing regulatory focus and volume of changes, the importance of advisers having access to expert support and reassurance is greater than ever. Although many firms have exited the DB transfer market, a large number do remain. Consumers have a statutory right to request a transfer value from their DB schemes. They are also required by law to take advice on a transfer where the value of benefits is greater than £30,000. As such, there is still a demand for advice in this area. It is incumbent on all market participants to ensure that the quality of advice is consistently high, that it treats customers fairly and delivers good client outcomes. Advice needs to genuinely place the client’s interests first. It is clear from some of the more egregious examples the industry has seen in recent years (the British Steel Pension Scheme being the obvious example) that this has not always been the approach of every adviser unfortunately. At Tenet we endorse the FCA’s view on DB transfers. For the majority of consumers a transfer out of a scheme is unlikely to be suitable. However, by definition this also means that there is minority of consumers for whom a transfer may be suitable. Clients who are of sufficient means that they will not be reliant on scheme benefits and have alternative planning objectives, or those with specific needs that cannot reasonably be met by the scheme benefits, are just two high-level examples where a transfer may potentially be supported. (Clearly each case needs to be judged on its merits and the overall situation considered in reaching a view on suitability). There are also specific scenarios relating to shortened life expectancy and financial hardship where clients may benefit from a transfer, as reflected in the contingent charging carve-outs introduced by PS20/6.

The FCA’s concerns about the standards of advice in the DB pension transfer market are well documented. It has been, and remains, an area of focus for the regulator. Developed and used by the FCA during the latest phase in their review of assessing the suitability of DB transfer advice, the Defined Benefit Advice Assessment Tool (DBAAT), together with a suite of 9 training videos and a 104-page instruction manual, is now being made available by the FCA in a bid to improve the standards of advice in this area by helping the industry understand how it assesses the suitability of DB transfer advice. The DBAAT is a template file review form which, the FCA says, ‘sets out the key factors to consider when checking the suitability of advice and disclosure’. It provides a comprehensive and useful structure for completing and recording a review of a DB transfer file. It does not change what suitable advice and good outcomes look like, but it can be used to benchmark assessment standards and support consistency. There are separate assessment tabs for the information standard of the file, transfer suitability, investment advice suitability, insistent client, disclosure standards and causation. The latter section is used to determine the underlying drivers where unsuitable advice, insistent client or disclosure standards are found. Firms can access the DBAAT through the FCA website and can use it subject to a Licensing Agreement. The tool is based on pre-October 2020 rules only. It therefore has limitations for use in assessing the suitability of new advice as it does not incorporate the rule changes that have come into force since 1 October 2020. These include, amongst other measures, the ban on contingent charging, carve- outs, updated disclosure requirements, the introduction of abridged advice, evidencing of client understanding and the need to consider a workplace pension scheme as a destination for a transfer.

Marjolaine Quirke Head of Propositions

6 | Investment Outlook - Issue 2

Investment Bonds and the Personal Allowance

Most of us will be familiar with the concept of top-slicing when it comes to calculating a potential income tax liability arising from an investment bond surrender. The purpose of top-slicing is to provide relief from higher rate tax based on the number of years the bond has been held and is essentially a recognition of the fact that not all of the gain will have accrued in one tax year. Despite the availability of top-slicing relief, a large bond surrender can have a significant impact on an individual’s overall tax liability. Bond surrender calculations have now become quite complex, especially since the introduction of further provisions within the March 2020 budget, which may require additional steps within the calculation. Technical Services & Research explore the key points which need to be considered.

Kate Quarmby Technical Services & Research Consultant

Mike Dowsett Senior Technical Services & Research Consultant

Personal Allowance The personal allowance is £12,570 for the 2021-22 tax year. Under the personal allowance taper, this will be reduced by £1 for every £2 of income in excess of £100,000. In working out whether an individual surrendering a bond is still entitled to full personal allowance, the TOTAL GAIN rather than the top-sliced gain is added to other income and tested against the £100,000 threshold for personal allowance taper. This means that an individual surrendering a bond could suffer an effective tax increase on their other income, as a result of a personal allowance reduction, even if top-slicing relief means that most or all of the actual bond gain falls within the basic rate tax band. Prior to the March 2020 budget, any reduction in personal allowance arising from adding the full gain to other income was taken into account when using top-slicing to calculate any potential higher rate tax on the bond gain. This was deemed unfair and provisions were introduced meaning that a separate calculation is now conducted to use the top- sliced gain to test for personal allowance reduction for the ‘relief liability’ (explained in the next column) part of the tax calculation only. Please note that this change does not prevent the overall loss of any personal allowance where the total gain added to other income is in excess of the £100,000 personal allowance taper threshold.

Calculation methodology In order to calculate the exact liability on a bond surrender the recommended approach is now to use a multiple step method which will involve: 1) Calculating the total tax liability on all income taking into account whether there will be any reduction in personal allowance. 2) Calculate the total tax on the full gain. 3) Calculating the ‘relieved liability’ using top-slicing on the gain to test for a reduction in personal allowance (as per the March 2020 budget change). 4) Use the relived liability to calculate top-slicing relief 5) Apply top-slicing relief to calculate the total tax due. It is possible to use a shorthand approach to estimate whether any higher rate tax will be due on the gain. This will simply involve adding the top-sliced gain to other income and seeing whether the slice falls into a higher tax band. This will give a good indication of the effect of the bond surrender in most cases. However, it will not always be 100% accurate. This may be the case, for example, where a large total gain means a reduction in personal allowance when added to other income, but the top-sliced gain added to other income is still below £100,000. In such situations only the more complex multiple-step calculation will give an accurate figure for the amount of relief that can be applied.

Investment Outlook - Issue 2 | 7

Example For the purposes of this article, we have used a simplified calculation to demonstrate the effect on the personal allowance. However, it is now normally necessary to complete the full multiple step HMRC method as described on page 6 to ensure that the correct tax liability (and top-slicing relief) is calculated. You can find full details of this on our TS&R Investment Bond Top-Slicing Calculations Factsheet on the Technical Services & Research section of the Tenet Extranet. This is available to all TNS members and TCS who subscribe to TS&R services. If you would like to subscribe, please contact us at [email protected] or 0113 512 0400.

In tax year 2021/22 Alex has a salary of £40,000 p.a. gross and an investment bond gain of £80,000. Alex has held this bond for 10 full years. Alex has made no previous withdrawals from the bond and wishes to encash the full amount now. Check for reduction in Personal Allowance £40,000 + £80,000 = £120,000 As this is over £100,000 Alex’s personal allowance will be reduced by £1 for every £2 over £100,000. £20,000/2 = £10,000 reduction in p.a. for the 2021/22 tax year £12,570 - £10,000 = £2,570 personal allowance remaining. Personal Savings Allowance is also reduced to £500

Source

Amount

Band

Rate Tax Due

Salary

£2,570 Personal Allowance £37,430 Basic Rate

0% £0

20% £7,486

Chargeable Gain

£500

PSA

0% £0

£2,840 Basic Rate 20% £568 £76,660 Higher Rate 40% £30,664

Total

£120,000

£38,718

Calculate the top-slice £80,000/10 = £8,000 £40,000 + £8,000 = £48,000

For the purposes of the bond tax calculation, as the £48,000 is below £100,000, Alex has the full Personal Allowance available. Please note – the PSA is still £500 as the whole gain is always included to determine the PSA level. Total tax on income and gain As £48,000 is under the Higher Rate Tax band of £50,270. Whether the bond is onshore or offshore bond, neither will be subject to higher rate tax. If this was an onshore bond, the basic rate tax has already been paid within the bond, there is no further tax to pay on the gain. If an offshore bond is surrendered, basic rate tax will be due on encashment. £80,000 x 20% = £16,000. No higher rate tax payable. Whilst in the above section we have calculated any tax due from the chargeable event gain, it is important to remember the additional tax payable due to the reduction in personal allowance. Alex still has £7,436 income tax to pay on her earned income, £2,000 (£10,000 x 20%) more than if she hadn’t encashed the bond.

Summary Prior to the changes made in March 2020, tax on the encashment of a bond could have been significantly higher. In some cases, a bond that would have been subject to a large tax gain a few years ago could now be much lower, or even have zero tax to pay. The important reminder we have highlighted in this article is that the tax bill isn’t just constrained to the product’s chargeable gain, but the client’s overall tax position needs be considered, particularly if there will be any reduction in the clients personal allowance. Where possible, consideration could be given to splitting the bond encashment over two tax years. Alternatively, your client could also consider making use of bond assignments to beneficiaries or spouses prior to encashment in order to alleviate the impact of any personal allowance reduction.

8 | Investment Outlook - Issue 2

Client Vulnerability

How vulnerable clients are treated is a major focus for the FCA. February saw the publication of Finalised Guidance FG 21/1 ‘Guidance for firms on the fair treatment of vulnerable customers’. As expected, this implements the proposals contained in the June 2020 consultation paper GC20/03, with minor amendments. The FCA want vulnerable clients to experience outcomes that are as good as those for other clients. Most firms will already have an established approach when dealing with vulnerable clients. It is clear however that the regulator feels that more can be done. It wants the new guidance to drive improvements and bring practical change in the way firms treat vulnerable clients. There is an opportunity now to review your approach to client vulnerability and ensure you are meeting expectations. To achieve good outcomes for vulnerable clients you should: • Understand the needs of your target market/ customer base. • Make sure staff have the right skills and capability to recognise and respond to the needs of vulnerable customers. • Respond to customer needs throughout product design, flexible customer service provision and communications.

such as having low knowledge or confidence in managing financial matters. It can also relate to low capability in areas such as literacy, numeracy, or digital skills. For investment advisers it is likely that client vulnerability may be more commonly driven by health and life events. Issues regarding resilience may be a factor for mortgage and protection clients. However, any client may be susceptible to vulnerability depending on their circumstances at a given time. The pandemic has led to an increase in the numbers of consumers in vulnerable circumstances. The FCA Financial Lives coronavirus panel survey, from October 2020, identified 53% of adults displaying a characteristic of vulnerability. This is an increase of over 3 million since February 2020. Many people may have multiple characteristics of vulnerability. Not all clients who have vulnerability characteristics may experience harm, but they may have additional needs which could lead to poor outcomes if not addressed appropriately. The level of care required may be different than for other clients.

• Monitor and assess whether you are meeting and responding to the needs of customers with characteristics of vulnerability, and make improvements where this is not happening. Who are vulnerable clients? A vulnerable client is someone who, due to their personal circumstances, is especially susceptible to harm - particularly when a firm is not acting with appropriate levels of care. Whether a client is or isn’t vulnerable is not a binary position, rather it should be viewed as a spectrum of risk. All clients are at risk of becoming vulnerable, and vulnerability can be temporary or permanent. Vulnerability must be assessed based on client specific circumstances. There are four key drivers which may increase the risk of vulnerability:- • Health – health conditions or illnesses that affect the ability to carry out day to day tasks. • Life events – major life events such as bereavement, job loss or relationship breakdown. • Resilience – low ability to withstand financial or emotional shocks. • Capability – this can be financial capability

Investment Outlook - Issue 2 | 9

Terminology Following feedback to the consultation paper the FCA recognise that labelling customers as ‘vulnerable’ is a sensitive issue. It notes how it has not changed references to ‘vulnerable consumers’ in the guidance, stating it is a recognised term across both financial and non- financial sectors. Although the guidance refers to consumers as being vulnerable the FCA suggest that you do not use this label in your interactions with customers. The focus should be on the potential harm or disadvantage clients may be vulnerable to and how you can respond appropriately. Using alternative phrases is a simple and effective approach. Referring to a client needing ‘additional support’ or ‘extra help’ can achieve the same outcome without the potential stigma an individual may feel by being labelled as vulnerable. Understanding the needs of vulnerable consumers You should understand the nature and scale of characteristics of vulnerability that exist in your target market and customer base. Ask what types of harm or disadvantage customers may be vulnerable to, and how this might affect their experience with your firm and their outcomes. Signs of vulnerability may be disclosed explicitly by the client. They may be apparent to any reasonable observer, or they may be hidden and only become evident as you get to know the client better. One of the challenges may be that some customers are unwilling or unable to disclose vulnerability, or do not understand how or why they should do so. People who are at risk of vulnerability may not always recognise it themselves or want to admit to it. Simply asking clients if they perceive themselves to be vulnerable is unlikely to be sufficient. Skills and capability of staff The fair treatment of vulnerable clients should be embedded across your workforce. All staff should understand how their role affects the fair treatment of vulnerable clients. Staff should be trained and empowered to recognise vulnerability and have the necessary skills and capability to act accordingly. There should be practical and emotional support for staff when dealing with vulnerable clients and potentially challenging situations.

Monitoring and evaluation The fair treatment of vulnerable clients should be embedded in the culture of an organisation. A one-off process would be unlikely to achieve this or meet regulatory expectations. There should be ongoing evaluation of the outcomes being achieved for customers which will enable improvements to be implemented. You should have quality assurance processes throughout the client journey to identify areas where:- • You do not fully understand vulnerable clients’ needs • The performance of staff has led to poor outcomes for vulnerable clients • Products or services unintentionally cause harm to vulnerable clients • Customer service processes are not meeting vulnerable clients’ needs You should have MI that enables you to monitor TCF outcomes for vulnerable clients. If you do not have an effective system for monitoring and evaluation you risk not being able to understand how vulnerable clients are being treated. This increases the potential for harm. Summary The volume of FCA communications referencing vulnerability in the last year is significant. You should be in no doubt as to the importance of the fair treatment of vulnerable clients to FCA supervision priorities. This focus has only been heighted by the impact of COVID-19. Where firms have previously helped vulnerable clients it has mainly been done at the individual customer level as the need arose. The FCA want to see fair treatment embedded into the overall culture of a firm, not just customer interaction. If asked, would you be able to: • Demonstrate how your business model, the actions you have taken and your culture ensure the fair treatment of all customers, including vulnerable customers. • Provide information you use to monitor whether you are achieving outcomes for customers with characteristics of vulnerability that are as good as those for other customers.

Frontline staff are a vital touch point for identifying, recording and responding to vulnerability. They should be alert to signs of vulnerability, such as: • Changes in payment behaviour such as payments stopping suddenly • Phrases such as ‘I can’t understand the letter you sent me’ • Indications the client has not understood or signs of confusion. Taking practical action - product and service design, customer service and communications The potential positive and negative impacts of a product or service on vulnerable clients should be considered. The needs of vulnerable clients should be taken into account in all stages of product and service design and implementation. Clients with less financial capability may be less able to understand more complex products and may therefore be at greater risk of making poor decisions as a result. There should be flexibility in service delivery, such as offering additional time for decision making to a client who is temporarily vulnerable due to a life event. Customer service standards and processes should be agile and responsive to the needs of vulnerable clients. Vulnerability issues may necessitate deviation from standard processes. There should be sufficient flexibility so that well trained staff can use their discretion to respond to the needs of vulnerable clients. Clients should be made aware of the assistance available to them, including relevant options for third party representation and specialist support services. You should have processes that support the delivery of good customer service, including systems to note and retrieve information about a customer’s needs. Firms need to communicate to all clients in a way that is fair, clear and not misleading. It is not necessarily the case that separate communications will be needed for vulnerable clients. However, you should consider how communications work for vulnerable clients and adapt where necessary. Checking understanding of a recommendation may need additional effort. Where possible, you should offer multiple channels for interaction so vulnerable clients have a choice.

Chris McGreavey Policy Manager

10 | Investment Outlook - Issue 2

Customer expectations driving digital engagement

Investment Outlook - Issue 2 | 11

The financial advice profession has some catching up to do. The trend for consumers to transact online has been growing for several years, but the restrictions created by the Covid-19 pandemic has really fuelled demand across all industries. A recent global survey by Salesforce found that COVID-19 has elevated expectations of companies’ digital capabilities for over two thirds (68%) of consumers, while 60% said the pandemic is changing their relationships with technology. While some parts of financial services, such as banking, have already invested heavily in the digital experience for clients, many in the advice profession have yet to fully embrace the technology available to make this happen. The reality is that the sector is lagging behind other industries for digital client engagement. Many consumers, often younger people who have grown up with on demand, 24/7 access to services, expect a similar offering from all their providers. For some, traditional advice is perceived to be time consuming, opaque and costly compared to the speed, security and convenience of making

financial transactions digitally. While the option to take digital advice has been available for some time, with paper applications and face-to- face meetings more difficult to manage during lockdown, Covid-19 has accelerated acceptance across a broader demographic. At the same time, the need for advice has never been greater given the effect Covid-19 is having on our personal finances. The impact of the pandemic on the UK economy has meant a rise in unemployment and fall in income for many households. Globally, despite many markets recovering to some degree from the initial drops in response to worldwide lockdown measures, the increased volatility and expected future trajectory of markets is a major cause for concern. Advisers anticipate that this uncertainty will fuel demand for advice, with a survey by Fidelity- owned platform, FundsNetwork, finding that more than half (55%) expect requests for advice to grow as a direct result of the pandemic. A fifth (19%) point to changing client circumstances and goals as driving demand, while a similar number (20%) believe increased awareness of the merits of financial planning will have an effect. The benefits of broad access to financial advice to help people navigate the challenging economic conditions and make suitable financial decisions in these times of uncertainty have never been clearer. Covid-19 is sharpening the focus of the importance of financial planning. In response to this growing need for advice, the FundsNetwork research also found more than three-quarters (77%) of firms are looking to onboard new clients, compared to 67% before the pandemic.

However, the problem is that, as things stand, our industry isn’t positioned to cater for a surge in demand. Many advice firms are already working at capacity. Even those looking to attract new clients will only be able to take on vast numbers by increasing adviser headcount, which is not an overnight solution. We believe that technology is the key to bridging this advice gap. Consumers no longer need to see a human adviser to receive financial advice. While arguments that human advisers remain the avenue for a full, holistic service still hold strong, digital and hybrid advice models are emerging that meet the financial planning requirements of those with simpler needs. For advisers willing to embrace digital solutions, there is huge potential to broaden out their offering. For clients with simple requirements, firms can provide a streamlined, cost-effective planning service via an online solution. At the same time, they can continue to offer a full, holistic financial planning service and human adviser centred relationship to those with more complex needs. In both cases, taking advantage of existing technology can help create efficiencies, and improve the customer experience. It can also increase transparency by giving the client on demand online access to up to date information about their financial position. With the shift to online here to stay, embracing technology may prove a win-win for advice firms; meeting customer’s digital expectations while ensuring long-term business success.

For further information on how intelliflo office can help drive your business forward, call 0330 102 8402, click intelliflo.com, or email [email protected]

12 | Investment Outlook - Issue 2

Register for our

Invest One Online – April 2021 Register your place: https://webinars.tenet.co.uk/Invest-One-2021

These events focus on investments and pensions and are designed to meet advisers’ development needs and provide a valuable insight into the current markets. They will offer a variety of important information from a wide range of provider partners, Tenet’s Senior Management and Tenet Adviser Training.

Upcoming Investment Events Our first round of online investment focused events begins in April. This series features 10 provider partners, Tenet Adviser Training and a Tenet Update. Our provider partners will cover a range of topics including a look back at 2020 and how investors should approach 2021, what Brexit and the deployment of the covid-19 vaccine means for the UK stock market and how an unconstrained fixed income strategy can help investors to navigate through the fragile economic recovery and uncertain outlook for 2021. They’ll also discuss the latest guidance on DB transfers and retirement income and the role of equity release in retirement planning, the evolution of ESG legislation and how to include ESG in client conversations, an inside view as to the workings of an investment house, and the behavioural biases that can affect investors.

Event

Date

Time

Invest One Online – Part One

20/04/2021

Approx. 1:00pm - 2:30pm

Invest One Online – Part Two

22/04/2021

Approx. 1:00pm - 2:30pm

Invest One Online – Part Three

27/04/2021

Approx. 1:00pm - 2:30pm

Invest One Online – Part Four

29/04/2021

Approx. 1:00pm - 2:30pm

Invest One Online – Part Five

30/04/2021

Approx. 1:00pm - 2:30pm

Business Focus Event Invest Online – May 2021 Register your place: https://webinars.tenet.co.uk/bfe-Invest-2021 These events will provide you with key updates on the investment market and the industry as a whole, including product development. They will offer a variety of important information from a wide range of provider partners.

Event

Date

Time

BFE Invest Online – Part One

18/05/2021

Approx. 1:00pm - 2:30pm

BFE Invest Online – Part Two

20/05/2021

Approx. 1:00pm - 2:30pm

BFE Invest Online – Part Three

25/05/2021

Approx. 1:00pm - 2:30pm

BFE Invest Online – Part Four

27/05/2021

Approx. 1:00pm - 2:30pm

Specialist Invest Online – July 2021 Register your place: https://webinars.tenet.co.uk/specialist-invest-2021 These events will focus on specialist investments and the value they can add to your business. Tenet will utilise the expertise of providers and fund managers, to create a valuable event; giving key industry insights, technical guidance and sales support. The purpose of these events is to provide a higher level of education, through the use of case studies and planning scenarios to provide you with a greater understanding of each product and a proposition’s place in the market.

Event

Date

Time

Specialist Invest Online – Part One

06/07/2021

Approx. 1:00pm - 2:30pm

Specialist Invest Online – Part Two 08/07/2021

Approx. 1:00pm - 2:30pm

Specialist Invest Online – Part Three 12/07/2021

Approx. 1:00pm - 2:30pm

Specialist Invest Online – Part Four

14/07/2021

Approx. 1:00pm - 2:30pm

Specialist Invest Online – Part Five

16/07/2021

Approx. 1:00pm - 2:30pm

On-Demand Library Specialist Invest Two: https://webinars.tenet.co.uk/specialist-Investment-2 Invest Two: https://webinars.tenet.co.uk/invest-two-2020 Specialist Invest One: https://webinars.tenet.co.uk/specialist-Investment-1 Business Focus Event Invest: https://webinars.tenet.co.uk/BFE-Invest-1 Invest One: https://webinars.tenet.co.uk/invest-one-2020

14 | Investment Outlook - Issue 2

Intergenerational Planning

Over the last decade or so, we’ve seen rising wealth in the UK, a lot of that fuelled by house price increases and that’s had a knock on impact. With average inheritances and IHT receipts rising it means very large tax bills for the estates - often six figures plus! Over the next 20 to 30 years, there’s going to be a big wealth transfer down the generations and we’ve got the solutions and the support to help you help your clients transition that wealth, in a way that suits them.

The growing opportunity for advisers

• £179K is the average UK IHT tax bill, with many families neglecting financial planning*** • £5,100,000,000 (£5.1bn) The scale of consumer IHT receipts in 2019/20**** *Kings Court Trust. https://www.kctrust.co.uk/ partner-blog/infographic-intergenerational- wealth **https://assets.publishing.service.gov. uk/government/uploads/system/uploads/ attachment_>Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36

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