Wealth Adviser Newsletter 30.09.22

Small is beautiful

Ian Macoun of Pinnacle Investment Management has written this week on the success that boutique asset managers have enjoyed, consistently outperforming non-boutiques over the last 20 years, but notes that the latter have received the largest majority of media attention?
Macoun believes that ensuring that the asset managers investors rely on to protect and grow their capital are working within an optimal environment for investment success is a vital factor that can’t be overlooked, and this is particularly pertinent during volatile market conditions.
He writes that volatility is the ultimate test of not only an asset manager’s skill, but also their mental fortitude.
"By removing distractions, such as responsibility for distribution, compliance, middle office and marketing – distractions that many CIOs and PMs who do not work within a multi-affiliate model have to expend significant time and energy on – we think we can provide the best environment for talented asset managers to deliver investment excellence," he says.
Volatility has dominated markets for the past week since last Friday’s mini-budget, with the BofE finally returning to QE to soothe things down. Alex Davies, CEO and Founder of Wealth Club has found good points in the mini-budget, noting that both the VCT and EIS schemes will be extended.
Davies says: "It is great to see the Chancellor announcing the extension of the Venture Capital (VCT) and Enterprise Investment Schemes (EIS), especially after a year or so of speculation about whether a looming Sunset Clause could see the industry shut down in April 2025. Removing this uncertainty should give investors the confidence to continue supporting this key engine of British innovation."
For those who are struggling in the shorter term, Bhavini Kalaria Partner, Litigation and John O Donovan, Partner, Banking & Finance at Harold Benjamin Solicitors noted this week that with a potential recession on the horizon, many business owners and individuals will be wondering what steps, if any, they can take to manage costs going forward. The pair have detailed helpful advice in their In My Opinion this week.
Beverly Chandler, Managing Editor
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