Summer update

Unbelievably we are halfway through summer, so before our August blog recess we thought it would be useful to look at some of the expected impacts and considerations for the rest of the year, as well as updating our readers on our business objectives and community support.

The impact of the new Government in the UK has been received positively by investment markets. In part this is due to political uncertainty in other geographies, though in the main, our view is formed through initial noises coming from associated lobby groups. These appear, at this stage, to be pro-business on the basis that growing the UK economy is key to improving our long-term financial health.

There will be an Autumn statement from the Government, though there is no specific date. To be clear, we are mindful of potential impacts from changes to pension scheme legislation and capital gains tax. Rest assured we are monitoring matters closely to ensure the best outcomes for our clients.

The US election will also be interesting. We see a Trump victory as being inflationary in the medium term, though also positive for US equities in general. We would also expect a weaker dollar, so good for UK holidaymakers, but less good for UK investors who own US equities so there is a tradeoff here. Although looking likely, it certainly isn’t a done deal that Trump gets his second term in the White House, especially given news in the last week, so we need to be vigilant and adapt our investment views as the probabilities change.

Outside of the election noise, we expect to see UK and US inflation and interest rate movements to continue to be supportive of our portfolio positioning. We have had a healthy return in the first 6 months of this year, though we need to constantly monitor data to ensure that economies, particularly in the UK and the US, are not slowing too rapidly or improving too quickly. We are prepared for either trend change, though we are currently more positioned towards the low-growth no-recession scenario.

So, the team at DB Wood have lots to do and consider over the months ahead. Overall, our measures for success are the continuation of our elevated level of client retention, which has been 99.3% over the last 12 months to June 30th. To complement this, our client referral levels are currently running at all-time highs. We must thank our clients and professional connections for this, as there are no better sources of referral than people who already value what we do, understand the benefit of having a clear financial plan and appreciate our proactive investment team.

As our business continues to grow so does our team, with our head count now at 62. This is a significant rise over the last 2 years, in large part coming from the investment in our business via the Amber River Group, who have supported 4 acquisitions over this timeline, with the aim of helping us replicate what we do across the region. Our acquisition of Thompson and Richardson Financial Services in Lincoln provides us with more office space, an excellent brand, and more great people, with the business having traded in Lincoln for over two decades. Together we now manage over £1 billion in client assets and provide working financial plans for around 3000 households across the UK.

In terms of our work in the community, in 2023 we had a record year raising over £5,000 through our various events. These funds were distributed to Cancer Research UK, Beaumond House (hospice), and the Children’s Bereavement Centre. We are also sponsoring the Newark Half Marathon for a third year as we continue to aim to promote health in the community.

In our August 2022 business update we announced our initiative with the Amber River Group, and together with their support and coordination we have raised over £12,000 so far this year for our chosen charities. The group are aligned to our core values of doing the right thing and, to this end we have created a foundation which has coordinated many events to help raise even more revenue for excellent causes.

Of course, giving is not just about donating but also about making a difference.  We are currently working with a significant charity in Nottinghamshire who help make a difference to young people that are part of dysfunctional families, hopefully delivering a positive outcome for them. This commitment is not financial, but more one of providing time and resources to help develop the charities’ infrastructure, hopefully onto a national footing, such is the effectiveness of their work locally.

So that’s about it for now, though we do hope you have enjoyed our blogs so far this year.  As ever feedback is important to us, and to this effect, please let us know if there are any topics you would like to hear more about. Please click the link below to add your comments.

Until September, thank you for your continued support, and do enjoy the rest of your Summer.

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