Our Weekly Newsletter
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.
News you can use
Women-led hedge funds outperform male-led funds during pandemic
Several hedge funds managed by women have outperformed funds run by men during the pandemic, according to data group HFR’s Women Access index. It reveals that female-led hedge funds lost 3.5% in the first four months of this year, beating out male-led funds, which experienced a 5.5% fall in the same period. Global head of alternative investment strategies at Aberdeen Standard, Russell Barlow, attributes this to how female managers may have a better approach to managing risk. (From Financial Times, 1st June 2020)
Thriving digital investment sets the UK up for post-coronavirus economy
Britain held almost 30pc of all foreign direct investment into the European technology sector last year, putting the country ahead of any other nation and setting up the economy for the increasingly digital post-pandemic era. Research published by EY shows that the UK was ranked in first place for new projects last year, as foreign investors surged into Britain’s tech industry, marking a 5% increase on 2018. However, there is an investment imbalance as two-thirds of FDI flows into big cities rather than being spread across the UK. As such, digital rebalancing will be key to the successful levelling up of the UK. (From The Telegraph, 28th May 2020)
House prices see largest monthly fall for 11 years, says Nationwide
According to Nationwide, house prices fell 1.7% in May from the previous month, the largest monthly fall over the last 11 years as the pandemic negatively impacts market activity. In addition, the latest HMRC data showed that residential property transactions fell 53% in April compared with 2019. However, Nationwide’s chief economist Robert Gardner highlights that the raft of policies adopted to support the economy should “set the stage for a rebound once the shock passes” and help limit long-term damage. (From BBC News, 2nd June 2020)
Coronavirus forces future onto platforms
According to a survey conducted by Platforum, the majority of adviser firm staff report that platforms have adapted well to the new working environment amid the pandemic. While fewer than half of platforms allowed new accounts to be set up using e-signatures, the crisis has helped kickstart greater agility and most platforms now accept this form of signature. The article also provides a chart rating platforms’ overall adaptation during the pandemic and on average, 57 per cent of advisers rate their primary platform as “very good” and 31 per cent as “good”. (From Money Marketing, 2nd June 2020)
Strict lockdown measures cause sharp rise in debt repayments
UK consumers repaid a record £7.4bn of credit card debt and personal loans in April, according to the latest figures from the Bank of England. Households are retaining a greater proportion of their income due to sharp reductions in spending. Lockdown measures have forced businesses to close to reduce the spread of the virus, meaning consumers have fewer opportunities to purchase discretionary goods. These latest figures suggest people used this excess income to repay existing debt commitments. Despite the rise in repayments, outstanding credit card debt remained high at £64bn last month. (From The Guardian, 2nd June 2020)