Clients Advisers

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To all clients and partners,

I am writing to tell you of the steps that we have taken across the Harwood Wealth Management Group in relation to the unfolding Covid-19 disease pandemic.

As I’m sure you will have seen across every media, the situation is evolving hourly and new advice continues to be issued.   We have taken the view that acting early allows us to manage change in a calm and orderly manner. Since the start of the outbreak we have been assessing the potential disruption and planning accordingly in line with our established Business Continuity Plans.

From the week commencing 16th March we have begun a process of our staff working remotely.   We believe that this reduced contact between staff will minimise the risks to them, our clients and our business. We are also restricting all business travel and have asked our staff not to attend conferences or meetings unless they are absolutely essential. 

The nature of our business allows us to provide  manage investments, process documents and instructions remotely as though we were sat in our regular places of work.   We have tested out remote IT infrastructure and are confident that we can continue to deliver high levels of service.

We are confident that we have taken early, well planned and tested measures and that our business will continue to deliver the service you have come to expect from us.

We hope that you and your family stay safe and well.

Kind regards
Alan Durrant
CEO

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Wellian Weekly


  • 3rd August 2020
    Wellian Weekly

    As Donald Trump turned his attention to the November elections and his own bid for re-election, on Friday he vowed to ban TikTok in an announcement that asserted the Republican party’s line on the US’s relationship with China. Rounding off a week which had been a diplomatic disaster, as a Chinese consulate closed in the US and vice versa in Chengdu, hostilities between the US and China look set to run until at least the end of the year.  

     

    To download the full report please click on the link below:


    Wellian Weekly

  • 27th July 2020
    Wellian Weekly

    In a previous article I wrote about how frustrating it is and long it takes for a fund of funds manager with an outsourced ACD to get an account set up and ultimately be able to trade in collective investments. On the other hand, if I wanted to buy an Investment Trust or ETF then this deal can be completed as soon as the deal ticket was completed and sent and this is a major risk for the unit trust / OEIC industry.  I’m sure we’ve all seen the charts showing that “x” years ago the average investor stayed invested in the same fund for “x” years, whereas today the average investor stays invested for “x” months. If it is difficult to get access in the first place due to admin backlogs, why keep trying?

     

    To download the full report please click on the link below:


    Wellian Weekly

  • 20th July 2020
    Wellian Weekly

    The coronavirus outbreak has sent a shockwave through the finances of millions of people in the UK. The effect has not been universal, nor has it been equal. Your age, your job, where you live, and the pre-virus state of your finances will all make a difference to how well you can cope. For a start, there has been the effect on income. For those who work, the amount of money coming in depends mostly on their wages.

     

    To download the full report please click on the link below:


    Wellian Weekly

  • 13th July 2020
    Wellian Weekly

    As the UK began to ease back on its lockdown restrictions, the date that seemed to attract most interest was the day on which pubs would once again open their doors. A milestone on the long road of “getting back to normal”, the day was symbolic as much as a reflection of the nation’s love of food and drink. One week on from “Super Saturday”, figures suggest the public were not knocking down the doors of their local eateries and sales were half the pre-covid levels over the opening weekend. 

     

    To download the full report please click on the link below:


    Wellian Weekly

  • 6th July 2020
    Wellian Weekly

    The very first unit trust was launched by M&G in 1931. At approaching 90 years old, they have a history to be proud of. As a portfolio manager that builds models using collective investments, unit trusts are pretty central to our business and there is hardly a day goes by when we do not interview a unit trust manager. Discounting income and accumulation shares, and different classes due to charging structures, there are over 3,000 / Open Ended Investment Companies on offer which collectively have in excess of £1.3 trillion of assets under management. Unit trusts are still being launched, so they are still obviously considered a suitable home for capital and relevant for investors and fund managers alike – after all, in the world we live in today, if they weren’t considered appropriate, why would they pass scrutiny from a product committee, compliance department, marketing and sales teams?

     

    To download the full report please click on the link below:


    Wellian Weekly

  • 29th June 2020
    Wellian Weekly

    Inflation in the UK fell to a four-year low last month. Year-on-year prices as measured by the Consumer Prices Index rose by just 0.5%. Sounds like inflation is something we don’t need to worry about right now.  However, a study that came out the other week that suggests it could end up being a much bigger problem that we might expect.

     

    To download the full report please click on the link below:


    Wellian Weekly

  • 22nd June 2020
    Wellian Weekly

    Since the shock of the coronavirus crisis brought markets to their bottom in March, equities have risen sharply, with global equities up 30%, prompting some commentators to query if markets had run ahead of themselves. Most countries are just reopening after lockdown, yet stock markets are around / above levels recorded at the start of the year, when the world was a very different place. Has optimism overshot reality? Is this just a reflection of the tsunami of liquidity that has been unleashed by governments and central banks in the western world?  

     

    To download the full report please click on the link below:


    Wellian Weekly

  • 15th June 2020
    Wellian Weekly

    Investing is not easy. No matter what anybody says. One of the main reasons is there is not one measure of success. The goal posts constantly change.  For instance, if my portfolio has achieved 10% (let’s say the portfolio is constructed of UK large cap stocks) and the benchmark index (a very relevant FTSE 100) has achieved 5% then you could argue that my portfolio has done well. But, if my 10% was achieved with 20% volatility and the index only achieved 10% volatility, have I done as well?  What if my 10% was achieved with 8% capital and 2% income, whereas the benchmark was 1% capital and 4% income and I was an income seeking investor (selling capital gains and using them as income aside).  There are so many “what ifs” when you use more than one measure of success.  Measuring David Beckham for his abilities as a footballing midfielder in reference to pinpoint accuracy on crosses or free kicks, or rallying the team as a captain is one thing. Measuring him for defending, tackling, kicking the ball with his left foot or heading the ball is another. So, overall, is he good or bad?

    To download the full report please click on the link below:


    Wellian Weekly

  • 8th June 2020
    Wellian Weekly

    Three months ago, investment firm Janus Henderson published its usual quarterly global dividend review and judged 2020 looked set to deliver a fifth consecutive year of record dividends, with global payouts totalling $1.48 trillion expected, some 3.9% higher than 2019. But that was then.

    Three months on, the more sober assessment of 2020 contained in the firm’s latest global dividend review is a great deal more downbeat. Its best case scenario sees a decline in global dividends of 15% this year to $1.21 trillion, a drop of $213bn. Its worst case scenario sees a decline of 35%, $933bn.

    To download the full report please click on the link below:


    Wellian Weekly

  • 1st June 2020
    Wellian Weekly

    The years since the global financial crisis did not see the return of strong global trade and economic growth rates of the early noughties, but with Donald Trump’s election as US president, protectionist rhetoric evolved into a full trade war with China. Although equity markets were optimistic about the signing of a Phase One deal in January, Covid-19 has given rise to practical and political issues that make the outlook for global trade look questionable. Lockdowns have led to dramatic falls in demand and brought the travel and leisure industry to a stop, clipping the wings of an industry that had been a bright spot for growth. The WTO has warned that it expects a significant rise in costs associated with extra border checks and extra time in transit as a result of travel restrictions that have been put in place. 

    To read the full article please click on the link below:


    Wellian Weekly

  • 18th May 2020
    Wellian Weekly

    As a multi asset manager, I have the privilege to spend lots of time talking to lots of fund managers about lots of different asset classes. I also have the ability to talk to economists and strategists about the macro environment.  Many managers I talk with are specialists, many are generalists. Investment styles and philosophies are discussed, as are portfolio construction techniques and many other conversations are held.  It’s not surprising that I write a lot of notes when talking to managers as the amount of information and data that is sent my way is massive.  On top of that, markets are constantly changing, the investment landscape is always reacting to different stimulus and the same stimulus can affect one industry completely differently to another.

    To download the full report please click on the link below:


    Wellian Weekly

  • 11th May 2020
    Wellian Weekly

    The Bank of England has warned that the UK economy is heading towards its deepest recession on record as the impact of the coronavirus has meant the economy would shrink by 14% this year, based on the lockdown being relaxed in June. Scenarios drawn up by the Bank to illustrate the economic impact said Covid-19 was dramatically reducing jobs and incomes in the UK.

    Bank of England governor Andrew Bailey has said there would be no quick return to normality and described the downturn as unprecedented and that consumers would likely remain cautious of their own choice even when lockdown restrictions are lifted, suggesting that it wouldn’t be until next summer that activity comes fully back.

    To download the full report please click on the link below:


    Wellian Weekly

  • 4th May 2020
    Wellian Weekly

    The magnitude of the threat to the economy that covid-19 represented was unforeseen in financial markets. Emerging first in December 2019, reports of covid-19's spread in Wuhan appeared in the press in January. The speed at which both the health crisis and the resultant economic and financial market crises have unfolded was at a far greater pace than we have seen before. Starting in mid-February, markets entered a month of intense pressure with both equity and bond markets falling, in a sell-off that affected all irrespective of geography, asset class and market capitalisation. As the size of the problem became evident, governments were prompted to respond very quickly, and on a larger scale than during the 2008 global financial crisis. Markets have reacted favourably to government measures and volatility levels have fallen from peak levels but remain elevated. During times of extreme stress assets can become very correlated to each other and March was no exception.

    To download the full report please click on the link below:


    Wellian Weekly

  • 27th April 2020
    Wellian Weekly

    Having worked from home now for several weeks, I have been considering what the world will look like and act like when we are released from our self-isolation. I fear this might last a couple of months and our outlook on investments, the economy, the way we interact with our companies and many other factors will change. Potentially forever.

    To download the full report please click on the link below:


    Wellian Weekly

  • 20th April 2020
    Wellian Weekly

    For income investors it’s been a torrid time; the ‘perfect storm’ doesn’t even begin to describe the situation we are going through. Across the board, dividends are being cancelled – with some yanked just days before payment. As you’d expect, the FTSE 100 is doing slightly better than the UK-focused FTSE 250, but only slightly.

    To download the full report please click on the link below:


    Wellian Weekly

  • 6th April 2020
    Wellian Weekly

    In the last few weeks equity markets have stolen the headlines with some dramatic movements in share prices that have rivalled those of the GFC. Also, in common with that period, we have again seen the suspension of property funds - although this time around managers are at pains to point out that it’s not for want of liquidity. 

    To download the full report please click on the link below:


    Wellian Weekly

  • 30th March 2020
    Wellian Weekly

    Exhibit A – Daily performance of the L&G UK Mid Cap Index Fund year to “date” (with “date” being 26 March 2018).

    Exhibit B – Daily performance of the L&G UK Mid Cap Index Fund year to “date” (with “date” being 26 March 2019).

    Exhibit C – Daily performance of the L&G UK Mid Cap Index Fund year to “date” (with “date” being 26 March 2020).

    To download the full report please click on the link below:


    Wellian Weekly

  • 23rd March 2020
    Wellian Weekly

    Last week a long-term client got in touch after reading the last piece we put out (https://www.wellian-is.com/53/572/wellian-weekly-16032020) questioning whether it was maybe a bit complacent in relation to what has been happening in the capital markets over the last couple of weeks.

    My initial response was “no, I didn’t think we were”. After all, we had written about the Coronavirus for the past two weeks - here (https://www.wellian-is.com/53/318/wellian-weekly-09-03-2020) and here (https://www.wellian-is.com/53/568/wellian-weekly-02032020) but maybe, in retrospect, we should have written again. So, for the third week in four, here goes.

    To download the full report please click on the link below:


    Wellian Weekly

  • 16th March 2020
    Wellian Weekly

    I am a full believer in the cases put forward by climate scientists in relation to carbon emissions, global warming, climate change and the potential devastating effects that will befall our planet if we don’t do something and do it quickly.  I’m doing my bit – solar panels have been on our roof for almost a decade; we drive a hybrid car; we recycle; we compost; our red meat intake has been curtailed massively; I walk lots of places; the use of public transport over taxis is the default option and so on, every little helps.  But, wouldn’t it be great if these 2050 targets were achieved BEFORE 2050? it feels a little like when I was at school – rapidly rushing my homework on a Sunday night for handing in on the Monday morning…  although 30 years away, this time will fly by. It is often said that the best time to make this change was 20 years ago; with the second best time being today.

    To download the full report please click on the link below:


    Wellian Weekly

  • 2nd March 2020
    Wellian Weekly

    In a meeting with an emerging market equity manager a few weeks ago, the manager took some time to carefully explain all the shares he had not been buying since news of the spreading coronavirus had begun to unfold in the media. The manager was eyeing some consumer discretionary names, but had not seen valuations reach a point that reflected the impact that coronavirus would have on businesses. After the last ten days, we suspect that he will be taking another look at some of the names on his wish list.

    To download the full report please click on the link below:


    Wellian Weekly

  • 24th February 2020
    Wellian Weekly

    We have previously discussed the returns from 2019 along the lines of which asset classes performed well, which surprised and so on, but this article is to take those numbers for the main asset classes and try and put them into a different context.

    To download the full report please click on the link below:


    Wellian Weekly