The Morning Briefing: VCTs are a ‘net benefit to the economy’; plenty of opportunities for financial advisers

Good morning and welcome to your Morning Briefing for Monday 20 January 2025. To get this in your inbox every morning click here.

VCTs are a “net benefit to the economy”, says Triple Point

Venture Capital Trusts (VCTs) are a “net benefit to the economy”, Triple Point retail strategy director Diana French told Money Marketing.

French added this is why the VCT and Enterprise Investment Scheme (EIS) sunset clause was extended to 2035 during the Autumn Statement on 22 November 2023.

VCTs help “Britain’s economy and helps to boost smaller companies”, French said.

Platforum: Plenty of opportunities for financial advisers

Just under £1 trillion of assets are held via financial advisers in the UK, according to estimates by Platforum.

Most of these advised assets are on-platform, but about a third of them are managed elsewhere. That’s a huge amount of value, but we think there’s still lots of potential for growth over the coming years.

The most accessible opportunity for advisers comes from existing investors, but not financial advisers’ current clients. Advisers don’t have a monopoly on retail investing – plenty of investment assets are held through wealth managers and direct to consumer (D2C) services.

Quote Of The Day

A new year, a new president. The lead up to Trump’s presidency has been noisy and, at times, divisive. Markets hate uncertainty though, and the simple fact of having the new president settled in the White House may prove to be a good thing for markets

– Hargreaves Lansdown head of fund research Victoria Hasler on Donald Trump’s US presidency

In Other News

National financial advice firm Continuum has reported a 23% rise in assets under influence in 2024, ending the year with assets over £2.4bn.

This is the 10th year-on-year of consecutive double-digit percentage growth in assets for the firm.

Continuum also reported that 2024 continued a trend of the last few years of increasing numbers of clients enquiring about accessing their retirement pots at the earliest age, citing the pandemic, cost of living and changing working patterns. In 2025, individuals born in 1970 will be eligible to access their pensions from age 55 for the first time.

Continuum has experienced continued growth in its adviser partnership, with the number of advisers increasing to 73. The company is looking to drive further expansion over the first half of 2025.

Continuum managing partner Martin Brown said: “We have achieved several new records despite the backdrop of economic uncertainty and a changing regulatory landscape.

“The demand and need for high-quality advice continues to increase every day as more people seek advice for the first time. And as an industry we must encourage more people to do so.

“The need for a clear and consistent offering from financial advisers has never been greater concerning explicit and understandable financial planning, standards-of-living concerns, surviving in retirement and tax changes coming into force, which many will be unaware of.

The opportunity for good financial advice firms to grow their business, brand and reputation is significant.”

Dollar dips, stocks creep higher as second Trump term dawns (Reuters)

Big Four set to miss female partner targets for 2025 (Financial Times)

Downbeat UK earnings updates dim hopes for domestic stock rally (Bloomberg)

Did You See?

M&G has appointed Marcello Arona as chief financial officer of its asset management business M&G Investments.

He joined M&G on 13 January 2025.

With over 20 years of experience in asset management, Arona brings a wealth of financial expertise and strategic leadership to M&G Investments.

In his new role, he will be responsible for M&G Investments global financial operations, implementing its financial strategy and playing a pivotal role in M&G’s overall long-term growth objectives.

He will report to M&G’s CFO Kathryn McLeland and is working with CEO of M&G Investments Joseph Pinto as a key leadership team member.

He joins from AXA, where his most recent role was chief executive of AXA Investment Managers UK and AXA IM GS.

Lois Vallely has the full story.