It's time to get active

2016 has already been a difficult year for investors and in particular would-be investors.  Market volatility at the start of the year and investor apathy leading to a wait-and-see attitude in the run up to the Brexit vote, meant that new business numbers for H1 were nothing to write home about.

Man sending emails around the world

However, I was not alone in surmising that an expected remain vote in the EU Referendum would provide the stability for advisers and their clients to start investing again. But with a leave win, where will this position would-be investors and their commitment of capital to the markets now? Do we have to brace ourselves for a H2 where investors are even more reluctant to take the plunge into what will be uncharted waters and doom and gloom predicted by the remain campaigners?

In my experience, general practitioner advisers have always been resourceful in how they advise clients and where they generate new business from. Indeed recent business stats sent to me by one of our network partners indicates big dips in investment business month on month this year but more than compensated by huge surges in the writing of new protection and mortgage business. The ability to reinvent oneself and follow the money has long been the insurance policy for many an advisory firm.

As has been proved many times with hindsight, investment timing is a foolhardy pursuit for most and simple procrastination and sitting on one's hands until everything in the garden is rosy isn't normally a route to long term success. It’s at times like this that the adviser's role as consul to their clients has to come to the fore.

This advice might include doing nothing.  However, clients paying a regular fee to their adviser might have an expectation that some kind of active investment activity should be part of their wealth plan.  The challenge as a financial adviser is where do you go next?  Indeed, some advisers might raise the white flag and see recent events as an opportunity to get onboard the outsourcing train and employ solutions for their clients that enable them to park the agony of choice for underlying investment decisions with others such as DFMs.

This isn’t to admit defeat.  But rather a recognition that in current times two heads can be better than one and working alongside a DFM that has conviction, an active asset allocation strategy and decent research resources to make informed investment decisions not only removes the agony of choice, but enables your clients’ wealth to be actively managed including agreeing a strategy for how new cash might be staged into the market.

So when it comes to finding the perfect time to invest, a Chinese proverb probably sums it up best: "Man who waits for roast duck to fly into his mouth must wait a very, very long time."

Important legal information

This area of the site is for professional advisers

Please read this page before proceeding, it explains certain legal and regulatory restrictions applicable to the distribution of this information. It is your responsibility to inform yourselves of and to observe all applicable laws and regulations of the relevant jurisdiction.

This section of the website is directed only at investment advisers and other financial intermediaries who are authorised and regulated by the Financial Conduct Authority (FCA).

The information provided in this site is directed at UK investment advisers only and must not be circulated to private clients or to the general public. It does not constitute an offer to sell, or solicit an offer to purchase any investments by anyone in any jurisdiction in which such offer or solicitation is not authorised or in which a member of the Rathbone Group is not authorised to do so.

I confirm that I am an investment intermediary authorised and regulated by the Financial Conduct Authority. I have read and understood the legal information and risk warnings below:

Important Information (Terms and Conditions)

The information contained on this site is believed to be accurate at the date of publication but no warranty of accuracy is given and the information is subject to change without notice. Any opinions or estimates included herein constitute a judgement as of the date of publication and are subject to change without notice. Furthermore, no responsibility is accepted for the accuracy of any information contained within sites provided by third parties that may have links to or from our pages.

Rathbone Investment Management Limited ("RIM") is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered Office: Port of Liverpool Building, Pier Head, Liverpool L3 1NW. Registered in England No 01448919.

In accordance with regulations, all electronic communications and telephone calls between Rathbones and its clients are recorded and stored for a minimum period of six months.

The information provided in this site is directed at UK investors only. It does not constitute an offer to sell, or solicit an offer to purchase any investments by anyone in any jurisdiction in which such offer or solicitation is not authorised or in which a member of the Rathbone Group is not authorised to do so.

In particular, the information herein is not for distribution and does not constitute an offer to sell or the solicitation of any offer to buy any securities in France and the United States of America to or for the benefit of United States persons (being resident in the United States of America or partnerships or corporations organised under the laws of the United States of America or any state, territory or possession thereof).

In order to comply with money laundering and other regulations, additional documentation for identification purposes may be required.

Rathbones shall have no liability for any data transmission errors such as data loss, damage or alteration of any kind including, but not limited to, any direct, indirect or consequential damage arising out of the use of services provided or referred to in this website.

Past performance should not be seen as an indication of future performance.

The value of investments and the income from them can fall as well as rise and you may not get back the amount originally invested, particularly if your client does not continue with the investment over the longer term.

Changes in the rate of exchange between currencies may cause the value of an investment to go up or down.

Interest rate fluctuations are likely to affect the capital value of investments within bond funds. When long term interest rates rise the capital value of units is likely to fall and vice versa. The effect will be more apparent on funds that invest significantly in long dated securities. The value of capital and income will fluctuate as interest rates and credit ratings of the issuing companies change.

Tax levels and reliefs are those currently applicable and may change and the value of any tax advantage will depend on individual circumstances.

Investing in emerging markets or small companies may be potentially volatile, as these investments are high risk.

The design, text and images are owned, except as expressly stated by members of the Rathbone Group. They may not be copied, transmitted, displayed, performed, distributed, licensed, altered, framed, stored or otherwise used in whole or in part or in any manner without the written consent of Rathbones except to the extent permitted and under the procedures specified in the copyright Designs and Patents Act 1988, as amended and then only with notices of Rathbones' rights.

Rate this page:
No votes yet