Welcome to your August update from Team DFP. In this issue, we’ll be looking at the surge in private equity investment, and the relationship between green investors and the food industry. We'll also ask why financial planning could be the perfect career for someone you love.
So, plenty to get into but first, as always, here’s a message from our director, Liam Winstanley.
A message from our Director…
A shorter message from me this month - but a note of thanks.
This edition marks the start of our second year of monthly newsletters.
So, I wanted to say a big thank you to you all for taking the time to read our articles and updates. We hope they’ve been of value to you.
Best wishes and enjoy the rest of your summer.
In the news this month…
We begin this month’s news round-up with an article from the Express, which considers how early retirement could be on the cards for more and more 40-somethings, providing they’re careful and strategic with their long-term financial and pension planning. Remember, a good financial planner can provide the right level of support and guidance to help you make the most of your money.
Staying with pensions, and the news that ministers have rejected calls - which included a 70,000 strong petition - to lower the state pension age. The Department for Work and Pensions said it would be ‘neither affordable, nor fair’ to lower the entitlement age, which is currently 66.
Elsewhere, 2021 is proving a record-breaking year for private equity deals in the UK. Private equity firms are finance companies that invest in private businesses or the privatisation of public companies. They tend to target ‘cheaper’ or ‘underperforming’ businesses in the hope of transforming their fortunes and selling them at a profit.
Record low interest rates have allowed the private equity industry, which tends to be somewhat reliant on borrowing, to thrive this year. And, owing to Brexit, the pandemic, and other factors, many companies listed in the UK are cheaper compared with their international counterparts. The result? So far this year there have been over 400 private equity deals in the UK, worth almost $50bn. That’s by far the highest since data collection began 25 years ago.
Some of the companies that are now under private equity include ASDA, AA and Itsu. Morrisons is also looking likely to go the same way. If it does, more than 1 million British workers would be employed by companies owned by private equity. Find out more.
With climate and environmental issues dominating the news agenda, and with COP26 now around the corner, the government announced earlier this month a total of £160 million worth of investment into the Humber region’s offshore wind manufacturing sector. The investments are being rolled out as part of a ‘10-point roadmap’ for the UK's ‘green industrial revolution,’ to aid a ‘massive boost to Britain's offshore wind capacity’ and the ‘creation of up to 250,000 jobs’. Read more, here.
This month’s featured article…
Staying on the subject of the environment, and the growing demand for green investments. The UK government has announced the distribution of ‘green bonds’ to fund the now binding economic transition to becoming ‘NetZero’ by the year 2050.
Up to now, a lot of environmental investment has centred on energy. And, this has contributed to much of the progress we’ve seen in that sector. But experts are in agreement that there's more to do when it comes to food production - the second biggest contributor to climate change. So, this month’s featured article looks at the opportunities for climate conscious investors within the food industry. Take a look below.
On a lighter note…
Research conducted by ‘WealthTech Matters’ recently revealed that ‘finding and keeping people’ was one of the biggest headaches financial advisors face in the UK. But this shouldn’t be the case. After all, the financial planning industry offers all the career incentives that young people today crave: stability, flexibility, fulfilment, earning potential, prestige, and the opportunity for growth. Last month, we introduced you to Joanna Stuart, the newest member of our team. And there are similar opportunities across the country for young people like Joanna to take their first steps in the industry.
So, whether it’s your son, daughter, friend, grandchild, or other relatives, if they’re interested in finance / unsure which career to pursue, they could do a lot worse than financial planning. This article from Money Marketing looks in more detail at the reasons why.