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Investment Committee summary

Here is a summary of the points covered at the latest Investment Committee held recently.

7th December 2023

Cash Management

Our review started with an overview of the cash management services on the market. While most of our clients will be happy with directly held bank or National Savings & Investment accounts, those holding substantial funds or accounts for trusts and companies may benefit from using a cash management service. We have included more detail on this in our savings rates section.

Portfolio update

Portfolios held in ISAs, pensions and investment bonds are going through the fund changes we have covered previously. These changes were carried out in most cases at the September annual rebalance and the conversion of funds to income units are on course to be completed shortly.

Portfolios held in a General Investment Account (GIA) have had any accumulation funds converted to income units. So far as the fund changes are concerned, your planner will discuss this with you at your next review so any potential Capital Gains Tax implications can be managed.

For those clients invested with Parmenion the changes will be finalised shortly.

There is also a more comprehensive review of the sustainable portfolios being discussed and we will share more details of this in due course.

Governance update

We had a discussion on market returns and long-term return assets have been steady with global equities – the core asset – broadly in line with, or above, long-term real assumptions over 20, 10, and 5 years. However, bonds have been below long-term assumptions – especially over the last 5 years.

While the returns from bonds over this period have been disappointing we are not planning any immediate changes to the structure of portfolios. The returns from portfolios are largely driven by growth assets with defensive assets included to reduce volatility.