The Top Class Wednesday Update doesn’t want to hear it
Oh in the name of the wee man, here we go again. Last time – 2014 if you please – some wag dubbed the Scottish independence referendum ‘the neverendum’ (actually it was first used for one of the Quebecois referenda) and that resonated with a lot of people on both sides. We now face another […]
The Top Class Wednesday Update is crocked
I keep telling you June is the month that keeps on giving. And what it’s given me now is a crocked Achilles tendon and gracious, doesn’t that just smart. Obviously, in common with all men, my ability to withstand pain without whining is unparalleled but even so: michty. Jings and crivvens and perhaps even help […]
The Top Class Wednesday Update is going to the (science fiction) double feature
So it’s always good to open oneself to new experiences, as Brad and Janet found out. Just the other week, for example, Mark Locke spent a whole hour without a mobile phone to his ear, and he’s the happier for it. And it is in that spirit that we’re going to try something completely new […]
One vote more is enough for The Top Class Wednesday Update
See, I told you there would be lots going on in June. If you want next week’s lottery numbers just let me know. I’m like some kind of druid here. Speaking of which: obviously the TCWU isn’t the right place to discuss Tory politics – we’ve got Tom McPhail for that – but if I did a poll of all the lang cat’s clients and 40% of them said we sucked at our jobs then I venture to suggest I wouldn’t be taking that as an endorsement. If you did one and 40% of your clients said “actually, I’d rather have someone else looking after my money k thx bye” then neither would you.
It’s nice when lots of things happen because this email is much easier to write, and this week is a gift in that regard. We’ve got not one but two new MPS ranges hitting the market, and so that seems as good a theme as any into which to plunge.
I remember touring around with various footpads and vagabonds in 2018 and 2019 – prelapsarian days, siblings – talking about the impact of MiFID II on the administration of adviser-run models and what a basket case it all is. Mike had a funny slide about how much virgin Amazonian timber it took to print the hundreds of pages of total mince required as part of disclosure, and we enjoyed the look of beaten resignation on many faces as firms realised that yet again they were just there to get topped by the regulator, even if a lot of the MiFID II stuff wasn’t aimed at them.
(We may get a bonfire of MiFID II regulations yet, but don’t hold your breath.)
If you’d asked me then, not that you would have because it would have been a staggeringly boring topic of conversation, about what direction things would go, I’d have said that there would be a flight from adviser-run models to multi-asset funds. We’d have got over the single-line-of-stock issue, clients wouldn’t confuse complexity with suitability any more and we’d all get on with our lives.
In a reversal of druidic fortunes I think I’d have been wrong, and instead I think we’re seeing a flight to externally-run model portfolios. 38% of firms we surveyed recently said they were outsourcing in this way. Maybe these are the sweet spot – they do the diversified portfolio job, they aren’t available to D2C clients in the main, and they’re just sophisticated enough to make clients confident that their money is being taken seriously.
(If you want to see some research on all this, we’ve just contributed to a paper with Copia Capital on whether the CIP engine is overheating: free to download here).
Sweet spot or not, we’ve no shortage of models to look at, and to that list of hundreds of ranges we can now add new offerings from Aviva Investors and Vanguard. You couldn’t get two more mainstream names hopping aboard the MPS omnibus: this is not a fad.
A couple of quick observations on both of these. Aviva’s offering is tied into SimplyBiz and is aimed at decumulation. So that’s hitting a range of zeitgeist points right on the button. We don’t have pay-to-play marketing packages any more, but we do have “multi-year managed distribution partnerships”, so there’s that. It’s also only available on the Aviva Platform. So in one fell swoop we’ve got vertical integration, decumulation, MPS and strategic aligned distribution. Somewhere, a Big 4 consultant is getting extremely hot and bothered over a Powerpoint slide.
Vanguard’s LifeStrategy MPS is less zeitgeisty and is available on Transact, Aviva and Abrdn Wrap, but that doesn’t matter because it’s Vanguard and they can do exactly whatever they want. LifeStrategy is obviously a beast, and unless you have a problem with passives, Vanguard itself or the asset allocations then (judging by top sales on most of the platforms) your clients probably have some money in it. There’s just the single-line-of-stock issue, and that’s what this takes care of. It’s Vanguard’s world, kids, we just live in it…
So that’s another fun-filled week in June over. Can there possibly be more juice left in this most juicy of months? You’ll have to come back next week to find out… (or, you know, just read stuff on the internet).
#LANGCATLINKS
More McPhail: sorry about this, but the podcat’s most recent episode with pensions punk Henry Tapper is one of the very best so far and really deserves a bit of your time. Go listen here.
Good piece from yon Jack Gilbert here yesterday on CMCs and phoenixing. A scourge of our times.
And your music choice this week: well, I did say we couldn’t resist the metal for much longer. And so it is and shall be. I only recently discovered Sweden’s Evergrey, and I’m very glad I did. So do enjoy Blindfolded, and to be honest for the first two minutes 15 seconds of this ‘film’ you may wish that you were indeed blindfolded. The song’s great, but high concept metal videos…truly specialist stuff. Anyway, give it a go.
See you next week
Mark
The Top Class Wednesday Update is a fan of both Terry and June
Hello and welcome to your June. I’m a big fan of June; it’s a month where lots of things happen. The heating is off (not because it’s warm up here, just because we can’t afford it), lots of exciting worky things are happening, the industry is finally cranked up and into gear, and this year […]
The Top Class Wednesday Update lives seven metres above sea level
Hello, happy Wednesday. Unusually, I’m writing this early this morning (if you’re reading it on the day it comes out; if you’re reading it later then that last statement is fake news and you should ignore it). As I’m doing a quick scout of news to see if there’s anything that would make a better […]
The Top Class Wednesday Update is a fan of change
Hello, hello, back again. After having done something like 150 of these Updates, it’s a wonderful thing to have a team that can not only dep on Update duty from time to time, but even volunteers for it sometimes. I mean, there was Mike before – celebrating his 7th birthday with us this very day […]
The Top Class Wednesday Update is bathed in sunshine all year round
Good afternoon, everyone, Rich Mayor here doing the update this week as we’ve been crunching the platform numbers and our own to see if we can keep the ever-more-expensive leccy on in Edinburgh. Thankfully for me the South Coast of England is bathed in glorious sunshine 365 days a year, so 50p in the meter […]
The Top Class Wednesday Update had a nice time thanks
So how would we rate the last couple of Updates then? I thought Scott’s was very good. Didn’t read Mike’s. Only kidding. I was indeed at my first industry awards do for – I think – four years last week, having forsworn them long before the pandemic. I remember being a total grouch at one […]
The Top Class Wednesday Update hasn’t got a hangover
It is probably fair to assume a good number of our TCWU readers attended the Professional Adviser awards last night. I hope you all had a great evening and are feeling bright and energetic. Mark has been “in meetings” all morning, so for this week I’m on update duty. Fear not – there will be […]
