Quarterly Update to International IFA owners

Presented by Just Service Global: offering a technology partner and network solution to International IFA firms:

1. Platforms can offer more than just low costs

Technology can help alert advisers when their clients really need them.

Fund platforms have become a vital part of the financial advice space. They have been battling it out to get attention from advisers given their past dependency on life insurance products and tools provided by insurance companies e.g. adviser portals. These are no longer sufficient.

How do platforms, including networks with platforms, differentiate themselves in a world where it has become increasingly important for business owners to offer their advisers more product/service solutions?

New age platforms arguably are now the most important thing that will ensure survival, let alone growth, including lower admin costs and deliver more value for clients and advisers.

In the past, advisers can handle realistically between 50 to 70 clients. With the right platform this can be 100 or even 150 clients. Platforms help advisers to be more productive. It will increasingly have a massive impact on an industry who currently average less than 20 basis points on their total assets under management (clearly not sustainable at that low level).

Each owner needs to pick a platform that will best serve them in terms of efficiency and value to both advisers and clients.

The real efficiencies come from the software itself not about margins.

If you have access to the right technology you can innovate and create additional value, efficiencies and more exit strategies for the owner.

1. How technology can help manage client portfolios

Some interesting comments from Yodelar UK, a portfolio manager in the UK.

They regularly review portfolios for investors and find 9 of 10 contain poor performing funds, funds that consistently perform in the worst 25% of the sector.

Most investors are unaware they are invested in poor performing funds and that inefficient, poor performing fund managers may dramatically affect their future wealth.

New age applications can alert an adviser to poor performing funds held within client portfolios and give them the opportunity to demonstrate how their service can now help add value (making the charging or advisory fees much easier to justify).

Yodelar also reviewed almost 8000 pension funds, 4300 life funds and 2400 unit trust funds. Each of these funds were then provided with a performance rating based on how they performed within their sector compared with all other same sector competing funds.  St James Place had 117 funds and 93 funds that showed low ratings. ( where they consistently ranked worse than 50% of competing funds-usually bottom quartile: this means 80% of their funds underperformed).

Abbey Life in second place followed by HBOS and Lloyds TSB.

1. What are the potential benefits of joining a network?

It can be advantageous in particular for smaller firms because a network would usually handle both regulatory and legal responsibilities necessary to continue to provide advisory services For individuals running firms they need to be honest in assessing their firm’s current capabilities and competencies and consider their weaknesses – particularly relevant in order to stay relevant (and of value) to advisers and clients.

 A quick summary of the benefits of becoming part of a network:

Firstly, the benefits you would expect any professional network to provide:

- Licensing umbrella = more certainty of retaining all revenues from institutions

- Backroom administration = lower admin costs

- regular communication to clients to keep them engaged = more client engagement for up and cross-selling

- new business processing 

- recurring commissions/fee tracking and payment

- access to a broader range of products

The Just Service Global Network has all of these capabilities plus exclusive to our partners are:

- model portfolios (regulars, singles and open architecture bonds/fund platforms)

- monthly valuation update to clients including uploading our mobile app

- regular blogs and other marketing content to clients

- online partner Dashboard - includes two click view to any client valuation and alerts

- online portfolio review app (to lift return on your AUM) - including auto-populated switch forms following portfolio changes

- easy tracking of client review histories

……..and more applications currently being built

As always talk to your adviser within the Just Service network if you would like information or otherwise review your savings, investment or pension plans.

For all enquiries email info@justserviceglobal.com

Regards

The Just Service Client Service Team

All content provided is for informational purposes only. Just Service makes no representations as to the accuracy or completeness of any information contained or found by following any link. Just Service will not be liable for any errors or omissions in this information nor the availability of it. Just Service will not be liable for any losses, injuries, or damages from the display or use of this information. This policy is subject to change at any time.

#IFA #investment #technology #justservice #global

The possible impact of the Coronavirus on markets – is it the catalyst for a market downturn?

The coronavirus' effects could last longer than expected. 

The majority of commentators are saying China will slowly get back to work by the end of the first quarter. Investors will stay fairly steady throughout this period knowing that coronavirus will result only in a temporary knock on corporate profits and general economic activity. Ultimately, like in 2003 when SARS gripped the nation, China will rally to a V-shaped recovery — that is, a quick fall in economy activity followed by a sharp return to normalcy soon after. Markets are overreacting.

Be aware, these commentators may be wrong. 

The country's economy is growing much more slowly now (GDP growth has recently been about 6%, according to the government, compared with 10% in 2003 – when SARS hit) and the banking system is far more fragile and laden with debt.

To understand the economic predicament China finds itself in, you have to remember what was happening in China about a year ago completely aside from the trade conflict with the US. Last year it seemed the Chinese economy might come apart at the seams, as credit had dried up for the private sector — which is where most of the country's growth comes from — and consumers dramatically slowed spending.

In May 2019, Chinese regulators had to bail out a bank, Baoshang Bank, for the first time in decades. A few more bailouts followed, and suddenly banks became scared to lend to each other. By June, the Chinese Communist Party was forced to gather all the banks, tell them to get their acts together, and demand that they take haircuts on their investments in each other (a concept the bankers had lost familiarity with during the state's post-crisis credit spree). 

It is no surprise, then, that the creditworthiness of the Chinese banking system has been trending downward, especially at the lower end.

Because of the coronavirus, this weakened banking system — less than one year out from being on a bit of a brink — will now have to forgive loans for companies large and small and continue financing local governments dealing with the fallout from stagnating economies and the effort to fight the coronavirus. S&P research estimated that if this crisis is prolonged, bad debt in the banking system could increase from 2% at the end of last year to over 6%.

China's other financial-system struggle over the past year was ensuring that private-sector companies, mostly small and medium-size enterprises (SMEs), were getting adequate funding. A lot of these companies used to get financing from China's shadow-banking system, so when authorities cracked down on that in 2017 and 2018, they got squeezed. This is incredibly important. Chinese state media reported that in 2018, the private sector accounted for 50% of tax revenue, 60% of GDP, and 90% of new jobs and new firms.

There are many other indicators suggesting we are indeed living in a time where markets could fall at any time. 

As mentioned in previous blogs, our view is clients should be prepared for market turmoil – including the possibility of a global market correction or even market crash (including potentially moving their investment portfolios to very defensive risk profiles).

As always talk to your adviser within the Just Service network if you would like information or otherwise review your savings, investment or pension plans.

For all enquiries email info@justserviceglobal.com

Regards

The Just Service Client Service Team

All content provided is for informational purposes only. Just Service makes no representations as to the accuracy or completeness of any information contained or found by following any link. Just Service will not be liable for any errors or omissions in this information nor the availability of it. Just Service will not be liable for any losses, injuries, or damages from the display or use of this information. This policy is subject to change at any time.

#coronavirus #economy #china #justservice #global

Do You Have Enough Life Insurance Cover?

Do You Ever Think About Life Insurance?

With the outbreak of the latest new virus, do you sometimes consider how well protected your family (or business partners) are in the event of something happening to you or your spouse? Life insurance is one of those things that just about everyone needs but far too few people actually have. It’s easy to put off purchasing a policy when you’re young and relatively healthy. But the longer you wait, the greater the chances of something happening before you get yourself coverage. Maybe purchasing life insurance has been on your to-do list for a while but you haven’t gotten around to it yet. Check out these 10 reasons why you can’t afford to wait any longer.

1. Replace Lost Income

Life insurance works to provide financial security to your loved ones after you pass away. You have to consider what would happen if you were to die suddenly. This is especially true if your loved ones rely solely on your income. Get yourself adequate coverage. That way, you won’t leave your loved ones helpless when the monthly bills come around.

2. Cover Final Expenses

Sadly, even a basic funeral service can run upwards of several thousand pounds. While it’s possible to pre-pay for your funeral people don’t often think that far ahead. Pre-payment can ensure everything is in place for your loved ones after you die. However, there are risks to prepayment. Life insurance can give you and your beneficiaries more of a guarantee, lifting a burden off of them as well as yourself.

3. Paying Off Debt

Just because you die doesn’t necessarily mean your debts will disappear. In the instance that you and your spouse have co-signed for a mortgage or other loans, your spouse may become entirely responsible for repayment. The other outcome could result in creditors trying to collect from your estate. While that gets rid of your debts, your heirs will receive the depleted remainder. Life insurance allows those you leave behind to take care of any lingering financial responsibilities.

4. University Planning

There are a number of ways to save money for your child’s education. You may not have thought that a life insurance policy would be a viable option. But insurance payouts can actually provide a good supplement your savings. If your child ends up borrowing money to get through school, the insurance proceeds could also help wipe out pesky student loans.

5. Build Cash Value

Term Life Insurance is a type of life insurance, stays in place for a set period of time. But another option, whole life insurance, provides permanent coverage that only ends if you cancel the policy. Whole Life Insurance allows you to build up cash value over time, an attractive prospect to any people. That cash value acts as an extra cushion that you can tap at any time. This may come in handy if you have a financial emergency down the road.

6. Diversify Investments

Some people also use life insurance as an investment tool with universal life policies. These policies are tied to a specific investment product. Then policyholders receive dividend payments based on the product’s performance. Before you dive into this type of insurance, you’ll want to read the fine print. That way you’ll know the potential risks and returns before you commit.

7. Business Planning

If you own a business, it’s vital that you have life insurance. This covers your obligations so your hard work doesn’t go to waste. Are you involved in a partnership with someone else? You should both have coverage. That way, if one of you dies, the other isn’t left holding the heavy financial bag.

8. Estate Taxes

When someone passes away, their heirs often face estate and inheritance taxes on any assets they receive. If you’re worried about your loved ones getting hit with a big tax bill, a life insurance policy can help cover these added costs.

9. Coverage is Affordable

One of the excuses people tend to make for not buying life insurance is the cost. But truthfully, coverage often ends up pretty affordable for most people. Term life tends to be less expensive than whole or universal life. Plus, the younger and healthier you are, the lower your premiums will be. Unless you smoke or have a preexisting health condition.

10. Peace of Mind

No one can truly predict the future. But having life insurance means you and your loved ones can prepare for any eventuality. Even with a small policy, you may find yourself sleeping a little easier at night knowing that your family has protection in place should something happen to you.

As always talk to your adviser within the Just Service network if you would like information or otherwise review your savings, investment or pension plans. For all enquiries email info@justserviceglobal.com

Regards

The Just Service Client Service Team

All content provided is for informational purposes only. Just Service makes no representations as to the accuracy or completeness of any information contained or found by following any link. Just Service will not be liable for any errors or omissions in this information nor the availability of it. Just Service will not be liable for any losses, injuries, or damages from the display or use of this information. This policy is subject to change at any time.

#lifeinsurance #money #planning #justservice #global