Capital Markets

February 9, 2018

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Across Instinctif Partners’ Financial Services team, we are always keeping an eye on the key developments taking place across the sector to evaluate their impact on the many businesses we work with. Here we share our picks of the week’s most interesting news, and our expert views.

A new report has found that women achieve better returns from their investments than men, but are less likely to invest in the first place. Should investment managers and platforms be thinking about how to reach more females through their communications? Could they play a role in attracting more women to become investors? And, if women are better at spotting a trend, should investment houses be hiring more female fund managers From The Times, 4 February 2018

The FCA has issued a discussion paper into non-workplace pensions, notably self-invested personal pensions (Sipps) and stakeholder pensions. Commentators note that this might lead to a crackdown on insurers and other private pension providers who have been offering sub-standard products. Private pension providers claim that these consumers, who have collectively invested £400bn, are getting a good deal. The FCA will be the the judge of that. From Professional Adviser, 2 February 2018

So why did the markets slump so dramatically this week – and are we all doomed? Simply, a relatively low interest rate environement means that investors shouldn’t get overly nervous about the bull market ending. Also, companies have been beating earnings expectations – something that is incredibly difficult to do if the economy is not in a healthy state. Consensus is that we all need to keep calm, and carry on… From Bloomberg, 5 February 2018

ETFs are popular passive investment vehicles that combine the cheapness of index trackers with the trading ease and convenience of a normal stock. But, over the past year that popularity has exploded, and they have grown by $460bn globally. Now investment professionals are concerned that passive investing has become so dominant that is destructive to the growth-creating and consensus-building prospects of free-market capitalism. From Financial Times, 5 February 2018

The costs of mortgages could rise as the Term Funding Scheme (TFS) is cut off and the government plans to axe the Support for Mortgage Interest (SMI) programme for low income homeowners. Experts believe that mortgage rates likely will jump by about 25 basis points after the TFS is closed. The government has also been called on to delay replacing SMI with a repayable loan scheme, as sign up has been low and it could sattle financially compromised homeowners with what amounts to “a second mortgage” From The Daily Telegraph, 3 February 2018 and Guardian, 5 February 2018

Business and The Beeb – An insight from the BBC Business Planning Desk

This week, the Instinctif FS team attended a breakfast briefing with the BBC’s business planning team this week. Many of us will have wondered how they choose what business stories they tell, so here’s some insight on how they’re looking to tell them.

  • Project 50/50

The BBC is looking to tackle the issue of on screen gender parity. Its 50/50 project is dedicated to ensuring an even split of male and female commentators, to reflect its audience and best speak about topics in a fair and balanced way. So for brands, using a female spokesperson on a business issue can give an advantage from time to time – particularly if it is not on a non-gender related issue in business.

  • Know your audience

The main BBC News bulletins are targeted at the nation as a whole. Business stories that make it onto these programmes need to engage an audience that is educated, but not specialist, and have a consumer focus where possible, particularly for BBC Breakfast.

  • Beyond the bulletins

With an online offer most Britons check every morning, the BBC website could also be a perfect way to reach your desired audience. The key is to think about how a story can work beyond broadcast and bulletins – BBC Online looks for fresh commentary and perspectives as stories unfold during the day, and prefer those who can give them insight and interactive content, such as visuals.

  • Playing the long and short game

While the BBC’s planning team will look mainly at the daily news agenda, annual events such as Davos are often planned months in advance, with company results given two to three weeks of preamble. Where possible, it’s advisable to feed into this cycle: briefing a reporter in advance on a business develop gives them time to plan and could build a useful ongoing relationship.

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