Charles Gould

Thanks to the Hertfordshire Pension Fund team and their advisers for recognising the economic risks today and the future risks to their portoflio associated with climate change and environmental degradation . This is no longer debatable (just ask the unfortunate residents of Florida ) , but managing environmental risks in a portoflio is a complex challenge and should if implemented correctly also target and provide economic upside. We appreciate your foresight , support and interaction over the past year. This sees our UK local authority AUM surpass £1 billion, a great responsibility and privilege to manage. #climatechange #assetmanagement #lowcarbon

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Timely and typically thoughtful research here from Charles Hall. AIM is a vital piece of the UK's markets infrastructure. Next year it marks its 30th anniversary. A big focus for The Quoted Companies Alliance in the coming months will be how to ensure AIM remains fit for purpose for promising companies for another 30 years - and how it operates alongside Aquis Stock Exchange and the Main Market in supporting UK growth and prosperity. We need bottom-up solutions to revive our capital markets. So many companies begin their public journey on AIM or Aquis. Focus efforts here to fill the FTSE100 of tomorrow! #publicequity #growthcapital #smallcaps #midcaps #pensions #ukequities #investment #ipo #isa #wealthcreation #ftse Peel Hunt https://lnkd.in/esv83cev

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For real estate markets this is a significant piece of regulation. Time is running out for many people to get their external comms in order.

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🔍 Insights on Inheritance Tax Reforms & Family Businesses 📊 Navigating the complexities of inheritance tax reforms, especially for heritage-rich companies, requires strategic foresight and adaptability. Today, Berry Bros & Rudd, a 376-year-old London wine merchant, are raising flags about the potential effects the Labour government's proposed changes could have on their legacy. This iconic business, cherished through generations, exemplifies the resilience and longevity of family-run enterprises while underscoring the challenges they face in today’s shifting economic landscape. ⚡️Key Implications: - **Heritage at Risk:** With the Labour government aiming to cut business property relief, businesses like Berry Bros & Rudd might find their legacy threatened. This raises a crucial point: how do we protect heritage businesses while adapting tax policies to modern economic needs? - **Wealth Transition:** Inheritance tax reforms could complicate ownership transfers, hitting small and mid-sized family businesses hardest. It's crucial for stakeholders to remain vigilant and creative in crafting sustainable paths forward. - **Private Sector Concerns:** As reforms loom, private entities must collaborate to voice potential impacts, ensuring family businesses aren't disproportionately affected. 🔮 Future Outlook: I predict that we'll witness an escalating dialogue among family businesses, policymakers, and economic advisors. Vincent Delaporte, Berry Bros & Rudd’s CEO, has already spoken on the need for durable protections for centuries-old businesses that socially and economically enrich their communities. 🌟 Takeaways for Leaders: - **Strategic Advocacy:** Enhance engagement with policy makers to forge balanced reforms that consider the unique structure of family businesses. - **Consider Alternative Models:** Explore succession planning adjustments, and look at diversified investment portfolios to safeguard future operations and wealth distribution. - **Adopt a Long-Term View:** While taxes are indispensable, aim to balance immediate financial demands with the nuances of maintaining cultural and financial legacies. As we continue to undertake in-depth discussions around inheritance tax, fostering awareness and debating such issues within our LinkedIn community is paramount. By bringing collective insights and solutions, we can hope to navigate these fiscal challenges effectively. 📰 For more details, delve into the full news summary here: [Berry Bros & Rudd families warn inheritance tax changes threaten legacy of historic wine business](https://lnkd.in/ejTNgWFN).

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Budget Flash – Is the EIS & VCT Industry Too Complacent Regarding The Chancellor? A few weeks before the UK election in 2019, I was speaking at an Intelligent Partnership EIS Forum involving eight EIS fund managers, presenting to a group of about forty wealth manager and IFA groups. During the Q&A session, one participant asked the panel of fund managers whether they believed that the election of Jeremy Corbyn would lead to the end of EIS and VCT tax reliefs. With only one exception, they were unanimous in pouring cold water on this suggestion. Too many jobs would be lost; the UK needed investment in early-stage life sciences, fintech, blockchain technology, AI, and robotics; the creative fulcrum of entrepreneurial Britian would be sacrificed etc. All logical and well-reasoned arguments. Symvan was the exception that day and argued that these schemes would be amongst the first to go for the very simple reason that the Corbyn/McDonnell axis viewed the world through an essentially post-Marxist prism and simply saw such schemes as ‘tax breaks for rich guys.’ The private sector has little or no role in generating economic growth when you remove yourself sufficiently from reality. That intellectual depravity does not exist with the current government, but expediency potentially calls the wolf to the door nonetheless. And so Martin Vander Meyer offers a warning in a worryingly prescient article in this week’s Spectator in which he argues that, although the Chancellor has emphatically denied that she wishes to punish early-stage companies in the UK, she may have to “scrape the bottom of the bin” and punish the sector as the Treasury and the OBR have removed Labour’s delusions about what the costs of its mooted tax rises will mean for the UK economy. If the furious lobbying ahead of Wednesday’s budget has taught us anything, it is that the power of the unions is forcing the Chancellor to make sub-optimal decisions and the UK as a whole will bear the cost. Will entrepreneurial Britain pay the price? #EIS #VCT #The Spectator #Martin Vander Weyer #UK Budget

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Great to speak to Natalie Kenway recently for Portfolio Adviser's dedicated feature on all things water. Water quality & stress is one of our key engagement themes at EdenTree Investment Management, and in this issue we talk about our work with water utilities on river pollution. Find out more below 👇 #stewardship #sustainableinvestment

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A couple of weeks ago, Jupiter Asset Management hosted a breakfast seminar to discuss the findings of the latest Pensions for Purpose Impact Lens report which which looks at how asset owners consider diversity, equity & inclusion in how they approach investments, as well as when appointing and assessing their investment managers and other third parties. I've summarised the conversation here.. #DEI #PensionsforPurpose https://lnkd.in/erFgJt_d

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BVCA Budget Response Today was a significant moment for the new Government, and the private capital industry. It is clear that Rt Hon Rachel Reeves understands the importance of retaining Britain’s status as Europe’s leading hub for private capital. At the British Private Equity & Venture Capital Association (BVCA), we focus on sharing how the private capital industry creates value in the economy. Today’s Budget should mean that more of the £178bn in UK managed funds can be invested domestically rather than in competitor nations. Responding to the Budget, Michael Moore put it well when he said: “It is welcome that the government has listened to our arguments on the value of the private capital industry and how important this sector is to the economy. “We recognise that the Government has had to balance the need to raise revenue for essential public services with the requirement to keep our economy competitive. “The announcement on carried interest recognises that a tax treatment which reflects the long term, risk-based nature of private capital investments is necessary to ensure that this important UK sector can continue to flourish in an increasingly competitive international environment. “Our industry will work with the government as it consults on implementing these changes and ensures any risks of reducing investment are mitigated.”

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The aim of the Roadmap is to put forward an investor and solutions-focused perspective on some of the key public policy priorities to boost low-carbon investment in the UK for the next five years. Read more in 'Boosting low-carbon investment in the UK: A Policy Roadmap' 📖 https://bit.ly/40coBaE #LowCarbon #UKEconomy #Policy

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Exclusive: Succession Wealth has made a move into the ultra-high-net-worth space with the acquisition of London-based IFA London Wall Partners LLP. It is Succession's second purchase of 2024 and its fourth since being acquired by Aviva. Read the full story for Money Marketing below: #financialadvice #finance #acquisition #IFA #financialadvisers #business

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🤩 Well worth reading this article by Harvey Jones on the 30th anniversary of VCTs for This Is Money. Last Friday it was 30 years since the then Chancellor, Ken Clarke launched VCTs in his Budget. Since then VCTs have raised more than £12bn for British start-ups. This piece looks at what VCTs are and whether investors should invest in them. Richard Stone, chief executive of The Association of Investment Companies (AIC) of Investment Companies, says: 'VCTs are a British success story and they have helped create several household name companies, generating thousands of jobs and boosting economic growth. Chris Lewis, chair of the Venture Capital Trust Association (VCTA), says 'Where it has traditionally been difficult for retail investors to gain access to investments in high-growth, private companies, VCTs have provided a route to backing a portfolio of these start-ups and scale-ups.  'VCTs offer the opportunity to invest in portfolios of AIM-listed companies too.' Included are data analytics firm, Quantexa, which first secured VCT funding in 2016. As a result, the firm has now grown to be worth $1.8billion and delivers $100million of annual recurring revenue. Vishal Marria, founder and chief executive, said: ' Albion VC and Dawn Capital have supported us from the beginning, providing valuable advice and feedback. 'We are a UK founded business... working with global industry leaders. Venture capital funds and the support of our investors continue to play a vital role in our growth trajectory.' Andrew Wolfson, chief executive of Pembroke Investment Managers, said: 'Venture capital trusts have become a cornerstone of support for early-stage British businesses, and they're capturing the attention of investors who want to be part of Britain's innovation story.  'It's not just about financial returns – our investors share in the growth of some of Britain's most exciting businesses." Read more here: https://lnkd.in/e4XUhDbK Simon Lambert Helen Kirrane Nick Britton, CFA, MCSI Nick Gardner Vanessa Booth Juliet Webber Stephanie Coxon Will Fraser-Allen Patrick Reeve Cathy Pitt Gay Collins Alexander Denny Albion Ventures LLC YFM Equity Partners Maven Securities Foresight Group Octopus Ventures

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The aim of the Roadmap is to put forward an investor and solutions-focused perspective on some of the key public policy priorities to boost low-carbon investment in the UK for the next five years. Read more in 'Boosting low-carbon investment in the UK: A Policy Roadmap' 📖 https://bit.ly/4d3GaN9 #LowCarbon #UKEconomy #Policy

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Alliance Trust announces that its investment manager, Willis Tower Watson (“WTW”), has appointed a new stock picker for its multi-manager global equity portfolio. ARGA Investment Management (“ARGA”) replaces Jupiter Asset Management (“Jupiter”) following Ben Whitmore’s decision to leave Jupiter later this year and set up his own business.   Craig Baker, WTW’s Chief Investment Officer and Chair of Investment Committee, said: “While we continue to have high regard for Ben’s skill as an investor, this change of circumstances introduces potential risks which will take time to fully assess. We have therefore decided to replace Ben’s allocation with one run by another stock picker with a similar value-investing philosophy. This will ensure the portfolio remains balanced across investment styles, regions, and sectors, and continues to seek to generate market outperformance from stock selection.   “We would like to express our appreciation to Ben, his team, and Jupiter for their contribution to Alliance Trust over the last seven years and wish Ben well in his new venture, which we will monitor with interest. At the same time, we are excited by the opportunity to introduce a new stock picker with an innovative and disciplined value process, and a large and diverse team providing research breadth and fresh ideas.”   ARGA is a global value manager, founded in 2010 by Chief Investment Officer A. Rama Krishna, who has over 30 years’ experience managing global and emerging markets equities. He previously worked at Pzena Investment Management from 2003 to 2010 where he led development of global value strategies while co-heading the emerging markets value team. Prior to that he worked for Citigroup Asset Management and AllianceBernstein. ARGA has £11.8 billion of assets under management as of 31 March 2024 and its staff are based in Stamford, USA, Chennai and Mumbai, India, and London. The firm’s investment philosophy is rooted in traditional value principles which seek to capitalise on investors overreacting to negative events and mistaking temporary stresses in share prices for permanent losses of capital.   ARGA has been allocated approximately 8% of the Alliance Trust portfolio to manage, funded from Jupiter’s allocation, with some minor adjustments to other stock picker allocations. The full list of stock picker allocations will be available in the April factsheet published in May.   https://lnkd.in/e-nuwaCx

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This month, I appeared on the FT Advisor podcast speaking with Simoney Kyriakou at the Financial Times about the growth of Independent Investment Management Initiative and what this means for the outlook for specialist asset managers. We touched on regulation, DE&I, innovation and the opportunities for the most entrepreneurial firms and the most active, active asset managers in our sector. What a pleasure, thank you Simoney Kyriakou. #boutiques #assetmanagement #growth

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This should be required reading for investors. Kudos to Caroline Escott and Chris Hodge. Audit underpins market integrity, yet there is strong evidence that it is failing. The US regulator’s latest inspections bring this to life (https://lnkd.in/eVxwrhkZ): 34% of reviewed audits by six global firms lacked evidence to support their opinions. High rates of audit deficiencies are repeated globally (International Forum of Independent Audit Regulators (IFIAR). Two points I’d highlight on the back of this report: 1. Investors should use their votes Of the steps that Railpen points to, one that investors can immediately action is their vote. Despite audit failings, investors keep reappointing auditors and audit committees. Auditors in the UK received an average 99% support in 2023. In the US, the figure was 98%. Investor indifference permits poor audit quality. Please see my article on the need for robust voting: https://lnkd.in/epsep6WK 2. Poor audit quality is a risk to capital protection One insidious consequence of audit weakness is not getting the attention it should. Auditors appear to be failing to check company compliance with capital maintenance rules, opening the door to over-distribution, weaker capital buffers and heightened risk of failure. Auditors generally have a role in policing capital maintenance rules (not the same as accounting standards – https://lnkd.in/eWzBy3_7). Critically, companies generally mustn’t distribute (i.e. pay dividends / share buybacks) out of unrealised (e.g. mark-to-market) gains. It is not clear, however, that this is being enforced. This was a key conclusion of the UK’s BEIS Select Committee 2019 inquiry into audit (https://lnkd.in/e8vqGGBd), chaired by Rt Hon Rachel Reeves, now Chancellor. The Committee called for urgent action to enforce capital maintenance rules. Recent research by Andy Haldane (https://lnkd.in/ecqct3Tj) and Adam Leaver (https://lnkd.in/ev43tNP6) underlines ongoing problems of overdistribution. As the UK advances its Audit and Corporate Governance Reform Bill, it should return to the Select Committee’s original proposals. Companies should publish in full their distributable reserves and a breakdown of their unrealised and realised profits, taking away the veil which can enable over-distribution. Auditors should be held accountable for ensuring this is done. Of the options on the table to boost growth, this has the advantage of being fiscally neutral. For their part, investors should start holding auditors and audit committees accountable for capital maintenance.

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Delighted to be attending the British Private Equity & Venture Capital Association (BVCA)’s ESG Conference today. Listening to the opening keynote from Lucie Mills of NorthEdge and the Chair of the BVCA ESG’s main benefits link directly to value. Whether that be by ensuring resilience and risk mitigation, supporting attraction and retention and hence performance. Also links to the attraction of the future generation of talent. It is also increasingly important for customer attraction and retention and therefore a driver of commercial success. All of which are factors that contribute to sustainability in its truest sense. The topics that will be discussed today will also be shaped by the forthcoming government - whether that be net zero, where the pace may vary but direction of travel clear or the focus on S - all parties are highlighting several factors in their manifestos, albeit with different areas of focus. The BVCA also set out it’s own recent manifesto for growth. So how can GP’s ensure that they are having an impact in the right way? We’ll ensure that you focus on influence, commerciality and the real material issues of portfolio companies. So given the impact on value creation it is clear that this is linking ESG not just to people’s moral compasses, but also showing how, when ESG is managed as part of an overall strategy, it has a clear impact on results. So what’s the best advice? Start simple, assemble your team, use data (wisely), focus on progress not perfection and link your focus to materiality. If you do that, in the way that NortEdge has, then there is a significant impact that can be made. #bvcaesg24 #esg #sustainability #valuecreation #pe #vc #materiality CEN-ESG

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The team at Legal & General Investment Management (LGIM) recently released our latest Active Ownership report, which outlines the decisive action we took with the aim of delivering positive change on behalf of our clients on a broad range of ESG issues in 2023.   I encourage you to read the report here: https://lnkd.in/eUNB4r5V   For professional investors only. Capital at risk.    #ActiveOwnership #Investing #ESG

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