Investments

Welcome to the May edition of Specialised Investments Simplified, where we round up the latest developments in the investment world and turn them into practical insights for financial planners and paraplanners. This month, we’re diving into inheritance tax planning post-Budget, the growing power of sustainable investing, and a couple of innovative opportunities making waves.

🏡 Inheritance Tax Planning: What You Should Know Now

Budget implications – what’s really going on? The government’s proposed changes to inheritance tax (IHT) – due in April 2026 – are causing a stir. Agricultural and business property relief could be limited, and farms worth over £1 million may face a 20% tax hit. While exemptions are still in place, it’s important to help clients take stock now and avoid getting caught out.

Practical planning tips:

• Encourage early action – talk to clients about reviewing gifting strategies now, before any new rules bite.
• Revisit existing trusts – some structures could become less tax-efficient, so a refresh might be in order.
• Remind clients about the 7-year rule – gifts outside the estate can still be a smart move when properly timed.

Spotlight on: TIME Investments

We’ve also been looking at TIME:Advance, a BR-qualifying investment that aims to deliver IHT relief in just two years. With flexible withdrawal options and a target return of 3–4.5% p.a., it’s worth considering for clients looking to retain access to their funds while planning efficiently.

🔗 Learn more about TIME:Advance

💰 Gifting Trends: Bank of Mum and Dad is Going Strong

Parents gave or loaned nearly £9.6 billion in 2024 to help their children onto the property ladder – that’s over half of all first-time buyer property purchases! With IHT rules in flux, many families are using gifting more proactively to transfer wealth sooner.

What to flag to clients:

• Document gifts clearly – especially if they could fall under the ‘gifts out of normal expenditure’ exemption.
• Review life insurance needs – gifting large amounts might warrant a protection check-in.
• Start the 7-year clock early – the sooner gifts are made, the better for long-term planning.

🌱 Sustainability in Practice: Our Work with Etcho

We know ESG isn’t just a trend – it’s part of good financial planning. That’s why we work closely with Etcho, a fantastic platform helping advisers align client portfolios with their sustainability goals.

What Etcho offers advisers:

• Client-facing sustainability assessments
• Portfolio screening tools to match ESG preferences
• Practical ways to start meaningful conversations around values-based investing

Also worth a read: Greenbank’s latest update on food security and nature-based risk shows just how quickly the ESG landscape is evolving.

🔗 Greenbank Sustainability Update – April 2025

🔎 Investment Trends: Innovation That Caught Our Eye

Foresight backs Functional Gut Group Foresight Group has invested £5.75m into the Functional Gut Group, a business offering diagnostic services for digestive health issues. It’s a growing market with potential for both health and returns. 🔗 More on this investment

Puma AIM VCT launches – first in 18 years Puma Investments has launched the first new AIM-focused VCT in nearly two decades. It’s already made an investment into quantum science company Quantum Base, which tells you something about where they see the future. 🔗 Puma AIM VCT launch details

💬 Final Thoughts

With IHT changes on the horizon and new ESG rules coming in, this is a great time to get ahead with practical planning and meaningful conversations.

At We Complement, we’re here to help you stay informed and efficient – whether it’s paraplanning support, help developing your CIP/CRP, or making sense of complex investment options. If you’d like to chat about how we can support your advice process, we’d love to hear from you.

📩 Drop us a message – we’re always happy to talk.

As spring unfolds, so does a fresh wave of opportunities and challenges across the investment landscape. For advisers and paraplanners, this month presents an important moment to reassess the terrain—particularly around green investments, renewable infrastructure trusts, and the growing momentum behind responsible investing.

This edition of Investment Matters brings together the latest insights and, as always, focuses on what this actually means for you and your clients. Our goal is to help you translate big market themes into real, practical planning conversations.

🌍 Green Momentum: UK Takes Centre Stage on Sustainable Investment

The UK government is doubling down on its ambition to become a global hub for green investment. With a £300 million fund earmarked for offshore wind development and a high-profile 60-country energy summit hosted in London this month, the message is clear: Britain wants to lead the clean energy race.

This comes at a time when many investors—especially those with ESG values—are feeling unsettled by policy instability elsewhere, particularly in the U.S. The UK’s consistency on climate goals provides a more stable backdrop for long-term, sustainability-focused investment strategies.

What this means for advisers:

• If you have clients who are ESG-minded but feeling unsure about where to invest, now’s a great time to refocus on the UK’s credibility and commitment to long-term green growth.
• Use this momentum to refresh your sustainable investment toolkit. Is your CIP or CRP reflecting the latest in environmental impact strategies?

💬 And a quick shoutout to our friends at Etcho, they’re doing brilliant work helping people understand the environmental impact of their investments. If you haven’t already, check out their platform for fresh inspiration on how to engage clients with their values in mind. Tools like this can be incredibly powerful in bringing ESG conversations to life.

Etcho for IFAs – Differentiate and grow your business through a values-based approach to advising

💡 Tip: Why not create a simple “Green Outlook” briefing for your clients? A short note or visual update on the UK’s renewable direction—and how your investment solutions support that journey—can be a great conversation starter.

💸 Renewable Energy Investment Trusts – Value Beneath the Surface?

Renewable energy investment trusts (REITs) are back in the spotlight—and not for the reasons you might think. After a challenging 2024, the sector has seen trusts trading at historically deep discounts, even as dividend yields hit 7–9%+.

For example:

• Greencoat UK Wind is currently yielding 8.9%, with a 24.6% discount to NAV.
• Triple Point Energy Transition offers an 8.7% yield, with a 36.2% discount.

So, what’s going on? Higher interest rates and a pivot back to gilts and other government bonds have drawn capital away from infrastructure. But with the prospect of rate cuts later this year, and with UK clean power targets getting more ambitious, we could see momentum shift back towards these trusts.

What this means for advisers:

• These REITs may represent a compelling income play, especially for decumulation portfolios where clients are looking for inflation-linked returns.
• Use this as a chance to educate clients on why market sentiment and underlying value can diverge, and how volatility can sometimes open doors, not just create risk.

Is it worth buying shares in Greencoat UK Wind?

💡 Tip: Consider spotlighting one or two renewable trusts in your next client newsletter or review meeting—especially if they hold a strong ESG or income objective.

📈 Responsible Investment: EdenTree’s Thoughtful Approach

EdenTree Investment Management has just released its latest Responsible Investment Activity Review, highlighting an active year of engagement on issues such as climate change, human rights in AI, and labour standards.

The firm also secured the “Sustainability Impact” label for three of its funds and re-affirmed its commitment to the UK Stewardship Code.

For advisers, this is a welcome reminder that ESG is more than just a marketing label—done well, it’s a rigorous, evidence-based approach that adds value for clients who want their money to do more than just grow.

What this means for advisers:

• Use EdenTree’s report (or similar updates from fund partners) as talking points in reviews with ethically-minded clients.
• If you’re building or reviewing a sustainable model portfolio, updates like this can provide credible examples of fund managers walking the talk.

💡 Tip: Invite a fund house rep to your next team CPD session to talk about their ESG process. It’s a great way to stay current, and makes for a stronger story when you explain fund choices to clients.

🏡 A Simpler Future for the Lifetime ISA?

Also in the headlines this month is a renewed call to make the Lifetime ISA (LISA) a pure first-home savings vehicle. Currently, LISAs can also be used for retirement planning, but there’s increasing support for simplifying their purpose and focusing solely on helping young savers get onto the property ladder.

While no changes have been confirmed yet, the proposal has implications for younger clients—especially those weighing up LISAs versus pensions or general ISAs.

What this means for advisers:

• Now is the time to review any LISA-linked advice or suitability documentation, especially for clients under 40.
• Use this debate as a prompt for younger clients to get proactive about planning—not just saving—and remind them that tax wrappers should support wider goals, not drive them.

💡 Tip: Create a quick LISA explainer video or blog post for your website/socials. It’s a great way to capture attention from first-time buyers and new leads.

💬 Final Thoughts – Turning Insight into Action

This month’s developments show how interconnected the advice world has become. Shifts in global policy, sector sentiment, and investor expectations all feed into the choices you make when building client plans.

At We Complement, we know that turning these market insights into practical, usable outcomes isn’t always easy. That’s why we work closely with firms to help shape Centralised Investment Propositions (CIP) and Centralised Retirement Propositions (CRP) that are not only robust, but flexible enough to adapt as client needs—and markets—evolve.

If you’d like to explore how we can support your team in building or refining your CIP or CRP, pop Amy North a DM, we’d love to chat.

Until next time, thanks for reading—and keep up the great work.

Welcome to this month’s edition of Specialised Investments Simplified, where we break down key trends and developments shaping the investment landscape. This month, we’re focusing on practical IHT planning advice post-Budget and key updates in sustainable finance—helping you, as financial advisers, better guide your clients through these changes.

Post-Budget IHT Planning: Practical Advice for Advisers

With potential IHT changes on the horizon from April 2027, pensions may no longer be the default ‘tax-efficient’ wealth transfer vehicle they once were. So, what should advisers be doing now?

🔹 Encourage clients to act early– If pensions become liable for IHT, withdrawals may need to start sooner than planned. However, this only works if the funds are then used efficiently.

🔹 Plan for the ‘spend, shelter, or gift’ rule– Whether clients are using trusts, gifting allowances, or spending their wealth, every action needs to be deliberate.

🔹 Utilise trust solutions– Loan trusts, discounted gift trusts, and gift trusts could be useful, depending on client needs. Investment bonds within trusts may also provide tax-efficient benefits.

🔹 Maximise annual gifting allowances– £3,000 per year (or £6,000 if unused from the prior year) can be gifted tax-free, plus small gifts of £250 to multiple individuals. Contributions to ISAs or pensions for family members could also be a smart move.

🔹 Document ‘gifts out of normal expenditure’– This is an often-overlooked exemption that, if used correctly, allows gifts to be immediately outside of an estate. However, meticulous record-keeping is essential.

📖 Read the full analysis

IHT Reform: What Advisers Need to Know About Agricultural & Business Property Relief

The government’s consultation on Agricultural and Business Property Relief (APR/BPR) is creating complexity for estate planning. While the £1m allowance for 100% reliefis helpful, new rules around trusts and transfers add significant challenges.

💡 Key adviser takeaways:

✅ Interest-free instalment optionsfor IHT payments could ease cashflow issues for beneficiaries inheriting qualifying assets.

❌ Trust taxation is getting more complicated– expect increased compliance and administrative burdens.

❌ Spousal transfers aren’t permitted, meaning business owners and farmers may need to restructure to avoid forced sales after the first death.

🚨 Next steps:Clients holding significant APR/BPR-eligible assets should review their estate plans now, particularly if they use trust structures. More legislative clarity is expected in the coming months, but early planning is key.

📖 Read the full analysis:

Sustainability in 2025: Practical Guidance for Advisers

Sustainable investing is evolving rapidly, and advisers need to stay ahead of both regulatory shifts and client expectations.

🌱 Greenwashing remains a major risk – Nearly 25% of Article 8 funds still fail to meet green criteria. Ensuring clients’ ESG investments align with their actual sustainability preferences is more important than ever.  📜 New SDR rules – The Sustainability Disclosure Regulation (SDR) framework is evolving, requiring advisers to provide more transparent, credible recommendations.  💰 Fidelity adopts SDR ‘Sustainability Mixed Goals’ labels – A sign that transparency in sustainable investing is becoming a priority for fund managers.

At We Complement, we use @Etcho, a powerful tool designed to help advisers bring sustainability into client conversations in a meaningful way.

Etcho provides:

✅ Clear ESG insights – Helping advisers align investment strategies with client values.

✅ Interactive sustainability tools – Making complex ESG factors easier to communicate.

✅ A streamlined approach to responsible investing – Giving advisers confidence in their recommendations.

🔗 Essential reads: Greenwashing Risks Sustainability in 2025 SDR Regulations Fidelity’s Sustainability Labels

The investment and tax landscape is shifting, and proactive planning is crucial. Whether it’s navigating potential IHT reforms or adapting to sustainable investment regulations, advisers need to stay ahead to provide the best outcomes for clients.

At We Complement, we understand the challenges you face. Our expertise and support services are designed to help you stay on top of regulatory changes, streamline your advice process, and ultimately, deliver better client outcomes. If you’d like to explore how we can complement your business, we’d love to chat.

📩 Get in touch today to see how we can support you.

Until next time,

Lucy

The financial planning landscape continues to evolve, with advice platforms playing an increasingly dominant role in wealth management. According to Fundscape’s latest Platforms Report, the top five advice platforms now account for two-thirds of all growth, highlighting a strong concentration of assets among a few key players.

For financial planners, this raises important questions about platform choice, service quality, and the long-term implications of consolidation. This month, we explore what’s driving this shift and what it means for advice firms. We also cover Goldman Sachs’ recent downgrade and BP’s strategic shift back toward oil and gas, both of which could have implications for investment strategies.

Advice Platforms: A Growing Influence on the Advice Market

Strong stock market performance throughout 2024 boosted platform assets to a record £1.1 trillion, with adviser platforms accounting for £697 billion of this total. Fundscape’s data reveals that while the market as a whole has grown, a select few platforms are seeing the biggest gains.

The top five platforms leading the charge are:

• Quilter
• Aviva
• Transact
• Aegon
• Fidelity

In the adviser-only segment, Quilter, Aviva, and Transact led the way, posting record-breaking gross and net sales. These three firms have consistently ranked at the top for three consecutive quarters, reflecting strong demand for professional financial advice and investment solutions.

For financial planners, this dominance raises key considerations:

• Are your clients benefiting from the best platform pricing and service?
• How resilient is your chosen platform to market shifts and technology changes?
• What impact will platform consolidation have on competition and adviser influence?

Why Are the Big Players Dominating?

Several key trends are fueling the consolidation of growth within these major platforms:

1. Multi-Channel Strength

Platforms that operate across advised, direct-to-consumer (D2C), workplace pensions, and institutional markets—such as Aegon, Fidelity, and AJ Bell—are seeing strong inflows across multiple business lines, making them more resilient to client withdrawals and market downturns.

2. Growing Demand for Financial Advice

As clients navigate complex tax and inheritance planning, the value of financial advice has never been clearer. Fundscape’s CEO, Bella Caridade-Ferreira, highlighted that demand for advice is expected to increase, particularly as clients seek guidance on inheritance tax and capital gains tax planning.

3. Regulatory Developments Creating Opportunities

The advice guidance boundary review and targeted support initiatives could bring more consumers into the financial planning ecosystem. Platforms positioned to support both full-service advice and streamlined guidance models may see additional inflows as more clients seek investment solutions.

4. Platform Efficiency & Technology Enhancements

Larger platforms are investing in automation, reporting tools, and user-friendly interfaces, making it easier for planners to manage client portfolios efficiently. However, as firms scale, there’s also a risk that service levels may decline, impacting the client and adviser experience.

Goldman Sachs Downgraded as Dealmaking Slows

For financial planners managing high-net-worth and corporate clients, the investment banking slowdown is worth noting.

Goldman Sachs was recently downgraded from ‘outperform’ to ‘market perform’ by KBW, due to a slower-than-expected start to dealmaking in 2025.

Key takeaways for planners:

• The bank’s valuation surged nearly 50% in 2024, but rising inflation, interest rate uncertainty, and cautious corporate sentiment have stalled mergers and acquisitions activity.
• Goldman’s revised share price target of $660 (down from $690) reflects a more measured outlook on corporate deal flow and investment banking profitability.

BP’s Strategic Shift: Reducing Renewables, Increasing Oil and Gas Investment

Energy remains a crucial consideration for investment portfolios, particularly for planners working with ESG-conscious clients.

BP has announced plans to reduce its renewable energy investment and increase annual spending on oil and gas to $10 billion. This signals a more cautious approach to energy transition investments, reflecting profitability concerns in renewables and a short-term focus on shareholder returns.

Implications for financial planners:

• Clients invested in ESG funds may need portfolio reviews to ensure alignment with their ethical investing goals.
• Oil and gas exposure could present short-term growth opportunities, given the sector’s higher margins and recent demand trends.
• BP’s pivot suggests a more challenging environment for renewables, meaning planners may need to scrutinize clean energy funds and their long-term growth potential.

What This Means for Financial Planners

The increasing dominance of a handful of platforms presents both opportunities and challenges:

✅ More investment options & better pricing – Consolidation means larger platforms can negotiate better fund charges and offer a wider range of investment products.

✅ Enhanced technology & automation – Tools for portfolio reporting, risk analysis, and client engagement are improving, making it easier for advisers to scale their businesses.

⚠️ Risk of platform dependency – If an advice firm relies too heavily on a single provider, it may lose flexibility if pricing, service levels, or product offerings change.

⚠️ Regulatory shifts require careful planning – The evolution of advice regulations could impact how planners engage with clients, making it crucial to stay ahead of compliance updates.

Meanwhile, BP’s shift in energy strategy and Goldman Sachs’ cautious investment banking outlook suggest that sectors previously seen as high-growth (clean energy, investment banking) may face headwinds, while more traditional industries (oil and gas) could benefit in the short term.

Final Thoughts

With platforms consolidating, markets shifting, and sector trends evolving, financial planners play a crucial role in helping clients navigate uncertainty. Whether it’s choosing the right platform, balancing traditional vs. ESG investments, or adapting to changing regulations, the key is to stay informed and proactive.

At We Complement, we’re committed to supporting financial planners with insights, tools, and strategies to help them deliver the best outcomes for clients.

Investment Trends to Watch in 2025: From Yield-Enhancing Structured Products to Private Credit and Music Securitisation

As we move towards the end of February, the investment landscape continues to evolve. Structured products, private credit, and innovative investment opportunities such as music securitisation are gaining traction among private banking clients, institutions, and high-net-worth individuals. These investment options provide stability, diversification, and exposure to unique markets.

However, investors must navigate persistent inflation risks, geopolitical tensions, and the transition to lower-carbon energy sources. These factors are reshaping the global economy, with sectors like mining and energy expected to present long-term growth potential. Meanwhile, ongoing geopolitical conflicts—particularly in Ukraine and the Middle East—and potential shifts under a new U.S. administration add further complexity to investment strategies.

Yield-Enhancing Structured Products: A Top Choice for 2025

Yield-enhancing structured products are set to remain a preferred investment option, especially for private banking clients with lower risk appetites. Popular choices include Fixed Coupon Notes (FCNs) and Equity-Linked Notes, which offer stable returns despite ongoing market volatility.

Notably, structured product volumes in Asia surged throughout 2024, reflecting growing demand for their attractive risk-reward profiles. With interest rates on a downward trend, structured products linked to equities and fixed income will likely stay in demand, particularly those benefiting from a steepening yield curve.

Key Takeaways:

• Structured products offer stable returns and diversification.
• Lower long-term interest rates may reduce the appeal of Minimum Redemption Notes.
• These investments serve as an inflation hedge and portfolio risk management tool.

Private Credit: Stability Amid Uncertainty

Private credit—lending capital to companies or individuals outside traditional banking channels—continues to attract investors seeking predictable returns. Despite falling yields in 2024, private credit maintains a premium over public bonds and remains a strong diversifier in uncertain times.

What Investors Should Consider:

• Manager selection is critical as new entrants increase risk exposure.
• Liquidity concerns are growing as private credit expands into the mainstream.
• Experienced managers with strong underwriting standards are favored in 2025.

Fund selectors say buy ‘hot’ private credit, but avoid newbie managers

Private Equity: High Rewards, High Risks

Unlike private credit, private equity involves acquiring ownership stakes in non-public companies. While private equity investments present substantial growth opportunities, they come with greater risks, including longer investment horizons and liquidity constraints.

• Requires high minimum investments, typically reserved for accredited investors.
• Long-term commitment with potential for significant returns but also higher risk exposure.
• Ideal for investors with a longer-term growth strategy.

Private Credit vs. Private Equity: What’s the Difference?

Music Securitisation: A Niche Yet Promising Investment

Music securitisation, first introduced through David Bowie’s “Bowie Bonds” in 1997, has evolved into a legitimate investment avenue. This strategy allows artists to monetize future royalties while providing investors with steady, passive income.

Why Invest in Music Royalties?

• Offers a consistent income stream backed by future royalty payments.
• Requires no ongoing management (unlike real estate or traditional businesses).
• Streaming platforms (TikTok, Instagram Reels, Spotify) can boost revenue unpredictably.

Key Risk: Revenue from royalties can fluctuate due to shifting music trends and algorithm changes on streaming platforms.

Music Royalty Securitisation: Bowie Bond’s Impact on the Industry

3 Benefits of Investing in Music Royalties That Recently Surged 200%+ in Streaming Revenue

Conclusion: Strategic Investment Choices for 2025

Navigating 2025’s investment landscape requires a diversified approach, balancing traditional instruments like structured products and private credit with innovative alternatives such as music securitisation.

To succeed, investors must:

• Understand the risks associated with each asset class.
• Choose experienced managers with strong track records.
• Diversify portfolios to maintain a balance between stability and growth.

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