Articles

When was the last time you stepped back and took a good, hard look at your shop windows?

Bear with me here. My marketing career began as a 17-year-old shop assistant arranging stylish new shoes at Dorothy Perkins—affectionately known as Dotty P’s. The first task each day was to inspect the window display. Did it look inviting? Did it reflect current trends? Was it clean? Was the messaging accurate and consistent?

Fast forward 20 years, and I still apply these principles when evaluating our website and all of We Complement’s digital marketing content. By reassessing your digital marketing, you ensure that clients and prospective clients leave your “shop” with a positive, lasting impression.

At 17, I had mastered the art of selling shoes. My boss wisely told me, “If you can sell shoes, you can sell anything,” and she was right. With more vacant units on the high street, I transitioned from shop work to my current role at We Complement.

The lessons from my Dotty P days are just as relevant in financial services as they were in retail. Here are my tips to attract a steady stream of clients to your “shop”:

1. Embrace Social Media

Did you know the average person spends two hours and 24 minutes on social media daily? Find out where your ideal client spends their time and join them there. For professionals, LinkedIn might be ideal. For a younger demographic, Instagram or TikTok could be more effective.

Similarly, in retail, stores offering complementary items tend to be located close together. People like having everything they need within easy reach!

2. Plan Your Strategy

Jumping into marketing activities without a plan is like writing a story without knowing the ending. How can you identify what works and what doesn’t? At a minimum, document:

• Your main goal
• Areas where you might need help
• The amount of time you can dedicate
• The methods you plan to use

What’s the point of having stock in the window if you don’t have enough to sell?

3. Know Your Competitors

Understanding your market position and differentiating yourself from competitors will help tailor your marketing. If you serve high-net-worth clients, focus on issues relevant to them. If your clients have modest incomes, their concerns will differ.

For instance, if you specialise in funding long-term care, your content should resonate more with the recipients’ middle-aged children than with the care recipients themselves.

If it’s wedding or prom season, I’m showcasing occasion wear in my shop window, not jeans and boots.

4. Improve Your Website

A clunky website that isn’t optimised for mobile users and fails to answer client questions will hinder your efforts. Even minor issues like spelling mistakes or broken links can drive potential clients away.

Think of it as scrubbing sticky fingerprints off windows—it’s about making a good first impression.

5. Build a Strong Social Media Presence

Regardless of the platform, post consistently to keep your brand visible. Prioritise quality over quantity by sharing valuable content that informs, entertains, or persuades. Repurpose relevant content and share interesting posts. Mix up your content with carousels, static images, and videos.

Change your windows weekly to keep them eye-catching and fresh.

6. Show Your Existing Clients Some Love

Send regular newsletters to keep clients informed of industry news. Check in with friendly emails each quarter. Remember birthdays, and send Christmas cards. Diarise major milestones and acknowledge them—sending a graduation card to a client’s child, for example, can make you the most thoughtful adviser they know.

Avoid making every email sales-focused. A subtle check-in can remind clients it’s time for another appointment without appearing pushy. Always thank customers, even if they haven’t purchased—they’ll remember it when they return.

These insights should encourage you to view your digital marketing from your client’s perspective. What lessons from your past are still relevant today?

Ready to Transform Your Digital Marketing?

If you’re looking to elevate your digital marketing game, We Complement is here to help. Our expert team can assist with everything from social media strategies to website optimisation, ensuring your digital presence is as compelling and effective as possible. Contact us today to learn more about our tailored marketing support services and start attracting more clients to your business.

In the 2023/24 tax year, Inheritance Tax (IHT) has raised a total of £7.5 billion of revenue for the government, which represents an increase of £4 million on the previous year. Furthermore, new data published by HMRC on the 22nd May 2024, shows that in the first month of the new financial year alone, an additional £700,000 million in revenue has been raised via IHT. This figure is 7.2% higher than this time last year.

This significant increase is, in part, due to rising house prices, but also the freezing of the Nil Rate & Residence Nil Rate Bands (NRB & RNRB) at the current levels, until April 2028. Furthermore, additional revenue could be raised by the government through closing inheritance tax loopholes, according to the Institute for Fiscal Studies.

In this vein, Business Relief (BR) & Alternative Investment Market (AIM) investments have been gaining popularity, offering the potential for reducing inheritance tax liabilities after holding the investments for a minimum of two years.

Despite it having been a challenging few years comprising of rising interest rates, forced selling and poor liquidity, which ultimately resulted in a 45% fall in AIM 100 (from its peak in August 2021), AIM portfolios have generally shown strong performance over the past 12 months. At present, the investable AIM market is made up of around 120 companies.

Following recent updates from Octopus & Time Investments, delivered towards the end of April 2024, we have taken a look at the performance of some of their main AIM & Business Relief qualifying investment offerings.

Octopus Future Generations Venture Capital Trust (VCT)

The Octopus Future Generations VCT is a relatively young VCT with the first investment having been made in June 2022. It invests in businesses that aim to build a sustainable planet (making up around 13% of the portfolio), empower people (around 27% of the portfolio) or revitalise healthcare (around 60% of the portfolio).

In their update, Octopus commented that the populus consensus, together with recent regulation, has driven and caused higher demand for sustainable, socially responsible investments, and, since its inception, the Octopus Future Generations VCT has made investments into over 25 companies, with over £45 million having been raised within the VCT.

No follow on investments have been made as yet, however, and Octopus have advised that no dividends are expected from the sale of any companies until around July 2025 at the earliest.

As the investments are more concentrated during the early investing stages, younger VCTs typically carry a higher level of risk than more mature portfolios which tend to be better diversified. This therefore means there is the risk that some of the investments may go on to fail.

Having said that, Octopus have a large and highly experienced team investing in the Future Generations VCT, which has resulted in a consistent pipeline of opportunities & investors seeking them out rather than the team having to search for potential investments.

Octopus Titan VCT

Turning to the Octopus Titan VCT, over the 12 months between the 31st of December 2022 & the 31st of December 2023, the Net Asset Value (NAV) per share decreased by 14.5p per share, from 76.9p per share to 62.4p per share.

It should be noted, however, that this represents the NAV per share once the dividends have distributed. Prior to this, shares were valued at 67.4p per share.

That is not to say, however, that the Titan VCT is performing poorly.

If we look at the discrete performance over the past 9-year period between the 31st of December 2014 and the 31st of December 2023, despite the recent tumult in the markets, the Titan VCT has generated total returns of 28%.

Some of the most notable and recent successful exits from the Titan VCT include graze (exited to Unilever), Tails.com (exited to Nestle), SwiftKey (exited to Microsoft), & Ultrasoc (exited to Siemens), amongst many others.

TIME:AIM Portfolio

According to the Q1 2024 Performance Update of the 25th of April 2024, the TIME:AIM portfolio has materially outperformed the relevant benchmark (NUMIS Alternative Markets Index) over the previous 1, 3 & 5 year periods.

Since inception, the portfolio has generated total returns of around 22.5% (inclusive of dealing and management charges).

Furthermore, following a strong fourth quartile in 2023, some of this performance has been shared in Q1 2024.

Although fundamentally, TIME Investments operate on a buy and hold philosophy, there have been some recent portfolio movements which include companies having moved into the main market (Breedon), others having been bought out (EmisGroup, smsplc & Impellam Group) and a couple being sold as they were not performing as expected (Johnson & iOmart).

With these exits, however, came further acquisitions between Q1 2023 and the present, including companies such as Alpha, Tatton Asset Management, Cerillion, bioventix and Tracsis.

Outlook

In terms of looking ahead, the Office for Budget Responsibility have forecast a rise of around 6.3% in the number of deaths resulting in an IHT liability, over the following four year period.

It is expected that there will be a huge transfer of wealth from the ‘Baby Boomer’ generation over the following couple of decades and with there being numerous elections on the horizon, there is concern over how this might further impact the IHT landscape.

For more personalised advice and to explore how you can benefit from these specialised investments, contact us at We Complement today! Our team of experts is ready to help you navigate the complexities of IHT and make the most of your financial planning. Let us assist you in optimising your investments and securing a prosperous future.

📞Get in to get in touch.

Crafting Consumer-Focused Suitability Letters

Welcome to this week’s newsletter, where we delve into the art of crafting consumer-focused suitability letters. At We Complement, we’re dedicated to simplifying complex financial information to support positive outcomes for both advisers and clients. Let’s explore what consumer-focused letters entail and the benefits they offer.

Understanding Consumer-Focused Letters

Consumer-focused letters prioritise client comprehension and outcomes over mere compliance. These letters serve as a bridge, translating intricate financial advice into clear, digestible insights for clients. They encapsulate advice summaries, client objectives, associated risks and benefits, and the rationale behind recommendations. Moreover, they address client queries comprehensively, guiding them on the recommended financial path. Ultimately, these letters aim to prioritise client education and align outcomes with their financial aspirations.

The Benefits of Consumer-Focused Letters

There are several benefits, with the main one being increased customer understanding. By using clear and concise language and linking recommendations back to the client’s objectives, customers will be able to easily understand why the recommended product or service is suitable for them. This will not only increase their confidence in your advice but also lead to better outcomes for the customer.

Another benefit is the reassurance that they will meet regulatory requirements. The Financial Conduct Authority (FCA) place a strong emphasis on ensuring that customers are treated fairly and receive advice that is suitable for their needs. By writing letters that are customer-focused and demonstrate a thorough understanding of the customer’s needs, firms can reduce the risk of regulatory action being taken against them.

Finally, by simplifying suitability letters and making them more engaging, firms can enhance their reputation and build trust with customers. A well-written letter that demonstrates a deep understanding of the customer’s needs and objectives can help to differentiate a firm from its competitors and foster long-term relationships with customers.

When crafting a suitability letter with a consumer duty focus, it’s important to ensure that it contains all the necessary elements to provide a clear and thorough understanding of the recommendation being made. Here’s what should be included:

Essential Elements of Consumer-Focused Letters

Crafting consumer-focused letters requires attention to detail and inclusion of vital components:

1. Client Goals and Priorities: Clearly articulate the client’s objectives.
2. Current Situation Overview: Summarise the client’s existing investments.
3. Rationale for Recommendations: Explain how recommendations align with client needs and objectives, including associated risks.
4. Balanced View: Present advantages and disadvantages of the recommended product.
5. Focused Advice Implications: Detail the implications of the advice provided.
6. Comparison (if applicable): Provide a clear comparison between old and new plans if replacements are involved.
7. Costs and Charges: Clearly explain financial implications, including costs, charges, and penalties.
8. Tax Implications: Address tax implications for the client.
9. Further Details: Include a section for specific client information.

At We Complement, we integrate these elements into our templates to ensure clarity and compliance. Whether you need a tailored suitability report template or updates to existing ones, our team is here to assist.

Contact us online or call 01472 728 030 to discover how we can create engaging, compliant templates that represent your firm effectively.

Ever noticed how even the simplest tasks in our daily lives are comprised of a series of steps? From brewing that essential morning coffee to navigating through rush hour traffic, processes surround us. Yet, it’s in our professional environments where process mapping truly shines.

Your clients expectations are constantly evolving, so staying ahead requires more than just delivering exceptional products or services. It demands a keen focus on the inner workings of your business, ensuring that every cog in the machine is well-oiled and functioning optimally.

Process mapping is akin to creating a visual storyboard of workflows and tasks. While it may seem mundane to dissect personal routines, in a collaborative setting, process maps become invaluable tools, bringing clarity and efficiency to everyone involved.

Delving deep into a process reveals its intricacies, allowing businesses to pinpoint inefficiencies and bottlenecks ripe for improvement. Not only does this foster clarity in roles and responsibilities, but it also streamlines operations, potentially saving both time and resources.

Tidying up

This is where the concept of “housekeeping” comes into play. Just like maintaining a clean and organised home, businesses need to regularly tend to their internal affairs to operate smoothly and efficiently. However, amidst the hustle and bustle of daily operations, these “housekeeping” tasks often get pushed to the back burner, overshadowed by more pressing priorities.

Neglecting these tasks can have far-reaching consequences. From unchecked expenses draining resources to outdated processes hindering productivity, the repercussions of overlooking business housekeeping can be significant. That’s why it’s crucial to carve out dedicated time and resources to address these matters proactively.

By leveraging technology, such as CRM systems, businesses can streamline their housekeeping efforts, automating reminders and tracking progress with ease. Whether it’s conducting regular audits of expenses, updating internal documentation, or reviewing IT systems, having a robust system in place ensures that nothing slips through the cracks.

Consider setting aside dedicated time, like a half-day session, to align your team on essential housekeeping tasks. Define the checks, frequency, and responsibilities clearly, then integrate them into your CRM system. This not only automates reminders but also ensures continuity, even in the absence of specific team members. Involving your team in the housekeeping process fosters a sense of ownership and accountability, driving engagement and efficiency across the organisation. By collectively identifying pain points and implementing solutions, you not only improve day-to-day operations but also cultivate a culture of continuous improvement.

At We Complement, we understand the importance of meticulous housekeeping in driving organisational success. Let’s collaborate to integrate these practices seamlessly into your workflow. Give us a call, and let’s chart your course towards efficiency and success together.

So, don’t let your business drown in a sea of clutter and inefficiency. Take the time to roll up your sleeves, get down and dirty, and clean up those everyday tasks. Your bottom line—and your sanity—will thank you for it.

At We Complement, we’ve been delving deep into the elements that constitute an exceptional Centralised Retirement Proposition (CRP). A CRP is more than merely a Centralised Investment Proposition (CIP) modified slightly for retirees. It should offer a reliable, repeatable, and consistent procedure for managing clients in the decumulation phase, with an emphasis on financial planning aspects that are particularly crucial at this life stage. This article aims to highlight areas to contemplate while devising an appropriate and sustainable withdrawal strategy for your clients. This article is not intended to be an exhaustive checklist of what a CRP should include, nor does it favour one strategy over another. Instead, it aims to stimulate thoughtful discourse and consideration. We hope it offers some valuable insights!

How do you determine the sustainable withdrawal rate for your clients?

Clients typically rely on their pensions to sustain them throughout their remaining years, necessitating guidance to discern the ideal withdrawal amount to ensure their pension does not deplete prematurely. The calculation of this figure is a challenging process, not necessarily an exact science, underlining the importance of documenting your methodologies and the reasoning behind them. Having this documentation can provide a solid defence should a client question or challenge your conclusions in the future, demonstrating the how and why of your calculations. What considerations factor into your sustainable withdrawal rate? Do you adhere to the often referenced 4% sustainable withdrawal rate proposed by William Bengen, or do you modify this percentage for UK investors? How do fees impact the sustainable withdrawal rate? Do you consider that the sustainable withdrawal rate might change for portfolios with different asset allocations? Do you apply a uniform sustainable withdrawal rate to all clients? What research and evidence support your approach? Determining a suitable withdrawal strategy is a significant aspect of assisting your clients with retirement planning. Your CRP is the perfect place to justify your thought process.

How much are you allocating to cash?

As discussed in last week’s newsletter: CRP Deep Dives: Decumulation Risks, sequencing risk can significantly influence the longevity of a pension pot. To mitigate this risk, some advisers adopt a bucket strategy or maintain a certain amount of cash ready for withdrawals. Some advisers avoid this approach and don’t place any more importance on cash than they would for an accumulation client.

Both approaches have their merits and can be backed by compelling arguments. The critical factor is to clarify your methodology and substantiate the reasoning behind it. This clarification promotes a consistent procedure across the firm and among clients, ensuring that your advice is robust, well-founded, and evidence-based.

What if things don’t go to plan?

The unpredictability of the future plays a significant role in making retirement planning a challenging task. Unforeseen events such as market downturns or significant life changes can disrupt even the most meticulously crafted plans, underscoring the need to prepare for the unexpected. What measures do you implement to counteract unexpected occurrences? Do you frequently engage in discussions about contingency plans with your clients? If so, at what stage do you determine that it’s necessary to resort to these contingency plans?

What probability of failure are you comfortable with?

Choosing a sustainable withdrawal rate often requires balancing a higher income against the risk of depleting the portfolio. Some clients might favour the potential of a higher income, despite the risk of it running out, as opposed to the certainty of a lower, but enduring income. Your CRP could be an opportunity to document the level of uncertainty you are typically willing to tolerate when deciding on a sustainable withdrawal rate, the reasoning behind that tolerance, and how you approach this compromise with clients.

Assumptions about longevity

Predicted longevity is a crucial factor in determining the sustainable withdrawal rate, and your methods for estimating probable longevity can be documented in a Centralised Retirement Proposition (CRP). Do you use a standard life expectancy for all clients? Do you rely on longevity data from authoritative sources like the Office for National Statistics? When advising a couple, do you factor in the likelihood of at least one partner reaching a specific age, or do you evaluate their life expectancies independently? Your CRP is the optimal platform to outline the assumptions you make regarding longevity and the process by which you arrive at these assumptions.

Establishing a resilient CRP requires recognising and mitigating risks to assure clients of a secure and sustainable retirement income. It’s crucial to craft strategies that resonate with clients’ risk tolerance, objectives, and personal circumstances. Although CRPs may not be heavily regulated, integrating these risk considerations can significantly enhance the quality and efficacy of your retirement planning services.  If you’re contemplating a review or implementation of your CRP, consider enlisting the expertise of our seasoned professionals. We specialise in constructing bespoke CRPs, finely tuned to meet your clients’ distinctive needs. Get in touch with us either online or by dialing 01472 728 030. We’re at your service, ready to deliver top-notch due diligence and investment research services.

Are you ready to transform your advisory practice into a seamlessly efficient powerhouse? At We Complement, we understand the critical role client management plays in the success of adviser firms. Our Client Management Service will revolutionise the way you interact with clients, streamline administrative processes, and give you the time and confidence to grow your business.

Efficiency Redefined:

Say goodbye to complicated and disconnected processes! Nicola Porter, our Head of Operations, and our team know what works. They are focused on cutting out inefficiencies, so you can concentrate on what you do best—providing expert financial advice. With a keen eye for detail, they handle the complexities of data gathering and organisation, setting the stage for solid client recommendations.

Proactive Case Management:

Ever felt overwhelmed by administrative bottlenecks?  Yep, we understand, our team go beyond just managing cases; they relentlessly push for progress, refusing to accept delays. Your business deserves a dynamic force that keeps things moving, and our team is up to the challenge.

Seamless Communication:

Imagine a world where communication breakdowns are a thing of the past. We have mastered communication, and are always 5 steps ahead- never playing catchup.  We Complement ensures that information flows effortlessly between you, and your clients and anticipates the next steps. Fostering a collaborative environment that maximises productivity. Imagine the ease that comes with a well-connected team working in perfect harmony.

Why Choose We Complement’s Client Management Service?

Boosted Efficiency, Amplified Results:

Our streamlined administrative processes are designed to amplify your productivity. By optimising every step, we save you time, allowing you to focus on what truly matters—delivering exceptional financial advice and growing your client base.

Precision and Compliance:

Navigate regulatory requirements seamlessly with We Complement. Our client management service gives you access to a comprehensive suite of suitability templates our paraplanners designed with Consumer Duty in mind. Paired with our dedicated team of paraplanners, our unwavering commitment to technical accuracy guarantees not just compliance, but surpassing regulatory standards. Stay ahead confidently.

Enhanced Client Experience:

Elevate your client interactions with prompt, efficient service. Our service helps you to exceed client expectations, fostering strong relationships. We embed ourselves as part of your team and solidify your reputation as a trusted financial adviser.

Cost-Efficient Operations:

We Complement doesn’t just optimise your processes; we save you money. Inefficient processes can be costly. We will review your administrative functions, (How many different licenses are you paying for systems that have the same functions?) and make suggestions as to how you can cut down on both time and financial resources, ultimately boosting your bottom line.

Administrators serve as the first and last point of contact for clients, representing your business throughout. Acknowledging and valuing their skills is crucial for the success of your advisory firm. Whether you’re a financial adviser seeking improved efficiency or a business owner aiming to elevate the advice journey, We Complement provides an all-encompassing solution. Contact us online or call 01472 728 030 to discover how we can enhance your client management services.