News Clips

UK growth to enter ‘fallow period’

UK growth to enter ‘fallow period’
 Quarterly UK GDP growth since 2013

Investors have said a “fallow period” of economic growth could last for the next two years, after second quarter UK GDP figures undershot expectations and forecasts were downgraded.

Last month the International Monetary Fund (IMF) lowered its estimate for 2017 UK GDP growth from 2 per cent to 1.7 per cent, blaming “weaker-than-expected activity in the first quarter”.

An initial estimate of second-quarter UK GDP growth, released days later by the Office for National Statistics, appeared to support this view, as did subsequent forecast revisions from the Bank of England.

Growth ticked up from 0.2 per cent to 0.3 per cent in the second quarter, but the services sector was the only part of the economy to expand over the…

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Advisers’ multi-asset fund use surges

Advisers' multi-asset fund use surges

The proportion of advisers favouring multi-asset funds has doubled over the past year amid a waning of interest in model portfolios, a study has found.

The percentage of intermediaries who predominately use multi-asset funds for client monies has risen from 18 to 36 per cent, according to research from Aegon. Model portfolio use has fallen by five percentage points as a result.

The report was released yesterday (July 25) as an update on a March 2016 survey by the Platforum. The Platforum surveyed more than 250 advisers while Aegon canvassed more than 100.

The figures mean the proportion of advisers favouring multi-asset funds is now equal to the number who give priority to model portfolios. The remaining 28 per cent of advisers were said to prefer single-strategy funds (12 per cent), stockpicking (nine per cent) and discretionary fund managers (eight per cent.)

Aegon’s investment director Nick Dixon said the costs and administration responsibilities tied to model portfolios may be pushing intermediaries to seek…

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From the blog: With grades, graduation and graduate jobs being of immediate priority, there is little concern of retirement plans and pensions among students. Following those are concerns about home-owning, holidays and being happy right now.

As a student, I am rather unfazed by the prospect of retirement.

The knowledge of living longer and thus working longer pushes myself and other young people to presume we have plenty of time to be riddled with retirement-related worry – now is not that time. Continue reading here.