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By Abhi Chatterjee, Chief Investment Strategist at Dynamic Planner

Since September 2024, there has been a marked increase in yields in the Fixed Income markets. Within the UK and its popular press, the move in UK Gilts has featured prominently with lengthy discussions on the whys and therefore, but when placed in the global perspective, the move is not singular. At Dynamic Planner, instead of concentrating on a single maturity point or issue, we consider a fixed income index and its redemption yield – the combined yield to maturity of the basket of issuances which is representative of the asset class – as the appropriate representative of investing in the particular fixed income asset class. Figure 1 and Figure 2 shows the changes in yields on the representative baskets of UK Gilts and Global Government Bonds, as well as the Sterling Investment Grade Corporate and Global Corporate Bonds.

An interesting case in point has been that both the UK and Government Bond yields have risen, with the Global Bonds rising slightly lower than their UK counterparts. Even if we did concentrate on the 10Y Benchmark rates in the UK and the US, Figure 3 shows that the yields on these have increased almost in lock step. This raises the question as to why the focus is on the UK Gilts in particular.

Let us consider the macro-economic back drop. Both the US and UK economies have been through a change of government. The Labour government in the UK has enacted a change in the business of government – a bold plan to invest in growth, combined with raising the taxes primarily on corporates outlined in the Autumn Budget. This is expected to inflationary by some quarters, with negative chatter around a “stagflationary” outlook impairing bond yield.  The US has also seen its fair share of change, with an overwhelming majority for Republicans. The resultant Trumpian policies are also considered inflationary, with the possibility of tariffs being placed on countries deemed to be involved unfair business practices or running a high trade deficit. The only difference with the UK is the US exceptionalism, fuelled by sterling growth, tight labour markets and expected tax and government spending cuts proposed by the incoming US administration. In both cases, given that growth plans in the UK and the tax cuts in the US have to be funded, this raises questions about debt sustainability in all economies. Bond yields ebb and flow – as long as there is none of the disorderly rout one remembers from Liz Truss’s disastrous “mini” budget, one can expect as plans become reality, the market will incorporate all the information within to settle at the “new neutral”. In passing, it must be mentioned that UK Gilts now is quite near what they were when the last Labour Government under Tony Blair took power and what followed was a decade of UK exceptionalism with high growth and productivity, based on their “Tax and Spend” policies.

Let us now look to our current allocations and the impacts there of. Since 2017, we have been on the path of globalising our portfolio – increasing decreasing the “home bias” in the assets invested into a more globally oriented allocation. As mentioned during the previous “News from the IC”, while we do not endorse the between 5-7% allocation in either Fixed Income and Equities to the UK, which seems to be the norm. We felt that while there is optimism around UK Plc, given the supportive comments from the Labour Government, it was felt that the companies that would receive a boost from these would be the Mid and Small Cap companies which derive the primary revenues from UK. The proportion of these companies in the broad UK benchmark is small – thus allocating a higher proportion to UK equities was felt to be inefficient. In addition, with UK economy in a quagmire, the Investment Committee also felt that Global fixed income provided better risk-reward characteristics to UK fixed income.

Figure 5 shows the broad changes made during our last review of allocations in Q3 2024. The impact of the changes in Fixed Income Allocations can be seen in Figure 6.

As can be seen our shift in allocations has neutralised the impact of the drop in UK Gilts – the lowest negative is in Risk Profile 6 which stands at 0.16bps. The primary benefit to the allocations has been the drop in the Sterling, which fell from $1.31 in September 2024 to $1.22 in January 2025, a drop of around 6.8%. In a scenario such as this, foreign assets priced in Sterling, as our Global fixed income asset classes, become more expensive giving us a boost in returns, as can be seen in the change in prices of the foreign assets.

In conclusion, our allocation changes, made in line with the expectations about the macro environment, have proved resilient to the vagaries of the fixed income market. We will continue to monitor our allocations and updated our clients periodically.

Basis of Preparation and Use

You should not rely on this information in making an investment decision and it does not constitute a recommendation or advice in the selection of a specific investment or class of investments.

The information does not indicate a promise, forecast, or illustration of future volatility or returns.  The outputs represent a range of possible indications of volatility and returns for various collections of asset classes. Dynamic Planner Ltd is not liable for the data in respect of direct or consequential loss attaching to the use of or reliance upon this information.

Dynamic Planner does not warrant or claim that the information in this document or any associated form is compliant with obligations governing the provision of advice or the promotion of products as defined by the Financial Services Act.

Dynamic Planner, the UK’s leading risk-based financial planning system, is now risk rating Marlborough’s managed portfolio solutions (MPS) range.

Marlborough’s MPS portfolios are now risk profiled along with over 900 other MPS solutions on the platform and will be available within Dynamic Planner’s DFM MPS Report Service.

The 21 portfolios target seven different levels of risk and return. For each portfolio, three options are available for the underlying investments: actively managed funds, passive funds or a blend of active and passive. The portfolios are unfettered, selecting from the full universe of funds.

Raj Manon, Marlborough’s Head of Investments – Multi-Asset, is the lead manager for the portfolios, working with the support of the wider multi-asset solutions team. The team have more than 200 years’ combined experience.

Advice firms using Dynamic Planner for MPS will benefit from in-depth reporting specifically focused on ensuring they are fully equipped to deliver good outcomes for clients under Consumer Duty requirements, demonstrating the value received for the risks being taken when using MPS.

Yasmina Siadatan, Chief Revenue Officer at Dynamic Planner said: “We welcome Marlborough to Dynamic Planner and are delighted to provide our clients with an even broader range of MPS solutions risk profiled on our platform. Having boosted our MPS research capabilities last year, we have seen increasing demand. With over 900 MPS now available on the platform, advisers have at their fingertips an expansive universe of MPS with insight delivered through the lens of our technology and asset risk model.”

Danny Knight, Marlborough’s Commercial Director – Intermediaries, said: “We’re very pleased to be working with Dynamic Planner, who share our commitment to helping advisers achieve first-class investment outcomes for their clients.

“This is an exciting time for Marlborough, with more and more financial advisers choosing our MPS service. Performance is clearly a crucial factor, and ours is comparable to the best in the industry. But over and above this, we provide an exceptional level of service and support for advisers. We believe this sets us apart, as does our partnership approach to working with adviser firms to help them grow.”

Dynamic Planner’s CEO Ben Goss believes that change is on the cards in 2025 for a financial planning industry that’s embracing the power of technology as regulation redraws the map.

Key themes expected to play out over the course of 2025 are:

Regulation reshapes the market: In the wake of Consumer Duty, some financial planning firms are finding it uneconomical to service their lower-value clients. But the market abhors a vacuum, and others will step into the gap. There are already firms using technology to deliver advice at scale. The Advice Guidance Boundary Review could turbocharge the transformation, and open up new seams of opportunity.

AI unleashes the power of data: Advice firms capture huge amounts of data in the financial planning process. In recent years, they’ve understood the power of that data, working hard to clean it up and get their systems talking to each other, so they have the information they need at their fingertips. Now, AI can unleash its potential, unlocking efficiencies in the planning and advice process and providing a huge boost to productivity. With time freed up, advisers can focus on their clients – and take on more.

Advice goes mobile: In a world in which we do everything on our phones, the advice process can feel old fashioned and admin heavy. Mobile planning apps will lighten the load. By making use of this channel, firms can not only deepen client relationships and demonstrate their ongoing value between reviews but pre-empt queries and streamline communication. Research conducted by FTRC for Dynamic Planner suggests clients are onboard, with close to two-thirds keen to be able to check their progress via an app.

Alts hit the mainstream: In her first Mansion House speech, the Chancellor announced plans to mobilise private capital to drive sustainable growth in the UK. Infrastructure and other alternatives are opening up to retail investors, providing clients with new potential sources of return, income and diversification. As portfolios become more complex and incorporate more illiquid assets, firms will need more granular risk analysis that will let them fully understand the holdings and their implications.

Advisers play a vital role: A quarter of the world’s population went to the polls in 2024. As we head into 2025, we’re still waiting to find out what the impact of those elections will be. The year starts with Trump’s inauguration, which could have significant repercussions for global trade and more. At home, tax changes from the budget will start to take effect. This uncertain global landscape means advice will count in 2025 and advice firms will play a vital role.

With 2024 the year of elections and approximately 25% of the global population exercising their right to vote, the potential outcomes and a combination of change and uncertainty are still evolving. As the dust settles, Abhi Chatterjee, Chief Investment Strategist at Dynamic Planner, the UK’s leading digital advice platform, has outlined what he expects to play out for markets as the world moves into 2025:

“Looking forward to 2025, a major source of influence on macroeconomic outcomes will be governments. Elections have taken place around the world, from the US to the UK, India and across Europe, many with shock outcomes. While there are numerous debates underway as to the whys and wherefores of such results, what they ultimately mean for macroeconomic policy in general – and more so for markets – is change. Change brings uncertainty, and along with uncertainty comes volatility.

“A primary concern for markets has been growth. Most of the developed market economies are in the doldrums. The manufacturing heart of the eurozone, Germany, has shown lacklustre growth on the back of sluggish exports, with energy shortages also playing a part. France and the UK remain in the same boat, with a moderate uptick expected in 2025.

“The growth engines in emerging markets, especially Asia, should see better prospects on the back of stronger domestic demand. The only clear bright spot globally remains the United States, where the economy has been humming along due to major fiscal policies enacted by the incumbent government. Should this remain the base case globally, we should expect modest growth, helped by easing inflation. However, changes in the political landscape raise significant risks to this scenario.

“Given the above, we expect the government sector to be the most affected. This includes issuances by government. The increasing budget deficits required for investments in infrastructure as well as social programmes mean government borrowing is expected to increase, raising concerns about the ability to service the increased debt burden. Thus 2025 is likely to bring greater volatility in government bond markets.

“The outlook on inflation also feeds into this. The combination of prospects for more protectionist US policy and China’s struggles could lead to possibly significant trade disruptions, which will invariably lead to higher prices as globalisation grinds to a halt. This could hamper growth in economies that export to the US – primarily Europe and China – as well as causing rates to stay higher for longer and producing tighter monetary conditions.

“The corporate sector seems to be in a healthier position. Earnings across regions have been strong, especially in the US, while Europe has strength in some sectors. As rates have started to come down, 2024 has become one of the busiest years for corporate bond issuance, and the trend is expected to continue in 2025. Should the Trump administration be supportive of corporates through tax cuts and reduced regulation, the US corporate sector will be in a favourable position. In Europe, there are likely to be sectoral winners and losers given the slowdown in China, a critical market for European companies. An unknown is the impact of future US policies, which could adversely impact both companies that trade with the US and the global economy as a whole.

“One sector expected to experience secular growth is infrastructure. Spending on capital projects has begun to rebound and is expected to accelerate significantly, with global spending forecast to increase to around USD 9 trillion for 2025. The World Economic Forum estimates that every dollar spent on a capital project (in utilities, energy, transport, waste management, flood defence and telecommunications) generates an economic return of between 5% and 25%. With government debt burdens increasing, private investors will be called on to do more, with the significant backing of governments.

“Looking forward, there seem to be two distinct themes – one each for the government and the corporate sector. Governments, through their policies and deficits, can significantly alter the macroeconomic landscape, but until the policies and their impact become clear, government issuance will see heightened risk. For now, safety may have to be sought elsewhere, rather than in this major “risk-off” asset. Corporate fixed income is likely to be a beneficiary, although strong corporate earnings are reflected in tighter spreads. Equity remains the asset of choice, on balance, given the policies expected to be enacted. But it would be unreasonable to expect the rising tide to lift all boats. More dispersion means this is an analysts’ market, in which research on sectors and names has the potential to provide better risk-adjusted outcomes.”

Dynamic Planner, the UK’s leading digital advice platform, has appointed Rowan Whittington as Growth Director for Tram, marking a significant step in its mission to revolutionise digital engagement in the UK advice market. Tram is the UK’s first white labelled app for advisers, allowing them to transform client engagement at scale.

Rowan joins Dynamic Planner from Confused.com where she held roles as Product Director and Head of Personal Finance. She grew two start-up consumer facing digital businesses within Confused.com and Admiral Car Insurance, where as Head of Product she was part of the Senior Management Team that developed and launched Veygo.

This is a newly created role for Tram in which Rowan will focus on growing the engagement of advised investors working in tandem with advice firms and building on the momentum already underway. Over the coming months Rowan will also build out the team supporting Tram. She will be a member of Dynamic Planner’s Senior Leadership Team, of the EMT and the Board.

Ben Goss, CEO, Dynamic Planner, said: “Rowan’s proven track record of leading transformative digital initiatives, coupled with her deep understanding of consumer needs, makes her an invaluable addition to Dynamic Planner. Her passion for empowering teams, championing meaningful change, and fostering collaboration aligns perfectly with our mission to drive innovation in the UK financial planning market. We are delighted to welcome her to the team.”

Rowan Whittington, Growth Director, Tram at Dynamic Planner said: “Joining Dynamic Planner and taking on such a revolutionary product marks the start of a very exciting journey for me. While financial planning is new to me, my focus on customer centricity is completely aligned with Dynamic Planner’s as well as being at the very heart of Tram for both adviser firms and their clients. Tram launched to industry wide applause earlier this year and I look forward to jumping onto the momentum behind it and taking it to the next level.”

Tram is the new white labelled app from Dynamic Planner which helps keep finances on track and is available from financial advisers on a B2B2C basis. Uniquely Tram puts the customer’s financial plan in the palm of their hand, helping them track their money against their goals daily, delivering hyper personalised content and enabling them to engage with their financial adviser quickly and securely when needed.

Dynamic Planner is the UK’s leading digital financial planning and advice platform supporting 45% of investment advice firms in the UK, reviewing more than £100billion of client assets and profiling more than 1,700 investment solutions from 150 asset managers worth over £280billion each quarter.

Dynamic Planner, the UK’s leading risk based financial planning system, has teamed up with Salesforce, the #1 AI CRM. The agreement makes Dynamic Planner the first and only UK based wealth planning partner for Salesforce.

This collaboration enables firms using Salesforce to underpin their financial planning process with Dynamic Planner, with Salesforce customers seeing many benefits including an enhanced and engaging digital financial planning experience. Proven to deliver huge productivity gains, Dynamic Planner will enable firms to scale their businesses, drive conversion and evidence suitability within a single system, reducing the risk of miscalibration and unsuitable investment recommendations.

Dynamic Planner has now launched on the Salesforce AppExchange.

Yasmina Siadatan, Chief Revenue Officer at Dynamic Planner said: “We are delighted to be the first UK based wealth planning partner for such an innovative and world leading company. Working with Salesforce and supporting firms that have Salesforce as part of their core infrastructure is a natural step which will be much welcomed.

“This collaboration provides financial planning and wealth management firms who use Salesforce with the ability to underpin their entire financial planning process with Dynamic Planner. It will boost productivity gains and efficiencies, whilst delivering seamless and engaging wealth and financial planning for Salesforce customers. We look forward to working with Salesforce to provide an enhanced experience for firms.”

This latest integration is the continuation of Dynamic Planner’s commitment to solving industry wide inefficiencies, a strategy at the heart of the firm’s vision.

Not a Dynamic Planner user? Schedule a free no-obligation demo with a business consultant and experience the full functionality of Dynamic Planner.

Advice firms will need to embrace app technology to attract and retain the next generation of clients, but the opportunity is not limited to younger age groups.

We commissioned research from AdviserSoftware.com, a division of FTRC, to explore the potential for technology to broaden access to financial planning and open up new markets for advice firms.

The survey of 4,000 members of the public confirms expectations around the use of technology in the advice process and points to rapidly changing behaviours. Alongside meetings with their adviser, 62% would like to track their pensions, investments and progress against their financial goals on a mobile phone app.

Unsurprisingly, demand is strongest in the youngest cohort. Those aged 18-34 are digital natives and bring the same expectations to financial planning as to other areas of life. In this group, three in four want to track their investments and access personalised content via an app. That compares to almost two-thirds (65%) of 35-55s, along with just over a third (35%) of over 55s.

Clients by age group who want pension/investment/goal tracking on an app

Young people tend to lead the way in technology adoption, but older cohorts follow. In 2014, just 14% of over 65s in the UK owned smartphones, versus 88% of 16-24s and 84% of 25-34s. Over the past decade, the gap has narrowed dramatically, and today 82% of over 65s own the devices.

That suggests the opportunity, already strong today, will only grow and extend across age groups.

By gender, both male and female respondents were in favour of the use of app technology in the financial planning process, with men slightly in the lead. Close to two-thirds (65%) of men were keen to keep track of their finances via an app, compared with 58% of women.

Those in favour of using application technology in the financial planning process

There was also some regional variation, with respondents in major cities broadly showing more appetite to use an app to supplement the adviser relationship.

Results by income bracket make a persuasive case for advice firms to consider using apps with their clients. Among high earners (those in the £80,000 to £100,000 cohorts), the ability to gain quick access to pension, investment and goal tracking via an app is seen as particularly valuable.

Clients by income bracket who want pension/investment/goal tracking on an app

Importantly, apps are viewed as a complement to the human relationship that lies at the heart of the financial planning process. Across age groups, 62% want digital solutions and human interaction to work in tandem.

For firms seeking to demonstrate ongoing value in a consumer duty world, these findings are highly positive. Apps offer a powerful way for advice firms to connect with and support their clients outside the annual review cycle, while simplifying client communications and reducing the time and cost to serve. That clients across demographics are onboard suggests the time to investigate the possibilities for your business is now.

Find out what advisers are saying about supporting ongoing relationships with our client-facing app, Tram

In the latest economic update, the Office for National Statistics (ONS) released its newest Consumer Price Index (CPI) data, painting a picture of what is happening in terms of inflationary trends and the broader economic landscape. Commenting, Abhi Chatterjee, Chief Investment Strategist at Dynamic Planner said:

“At last, some good news for the beleaguered consumer. Inflation, as measured by the Consumer Price Index, fell below the Bank of England target to 1.7% in 3 years. Better still, the print came in lower than was expected by practitioners. The downward move was from transport, fuelled by lower air fare and petrol prices. At the back of a cynic’s mind, is also the Middle East crisis, which has caused crude prices to rise as well as the rise in the Ofgem energy price cap rise for households – these have a potential to reverse the decline in inflation.

“Notwithstanding, this comes as a welcome boost to both consumers as well as the Government as it heads into its Budget, promising to do everything to “galvanise growth”. The Bank of England also gets a bit of a breathing room allowing it to take steps to begin the easing cycle in earnest. With the possibility of a rate cut by the Central Bank in November almost a certainty, it would not be too much of a leap of faith to expect another in December, should the trend in inflation continue.” 

Abhimanyu Chatterjee is Chief Investment Strategist at Dynamic Planner. Abhi leads Dynamic Planner’s team of analysts, who are responsible for asset allocation and for the Dynamic Planner risk model. Read more about Abhi here

Dynamic Planner, the UK’s leading digital advice platform has announced a new CRM integration with Adviser Cloud.

Advisers using the new integration will be able to seamlessly transfer client records easily, efficiently and securely between Dynamic Planner and Adviser Cloud. Data is passed between the systems, with Adviser Cloud validating all data, removing the need for rekeying, leaving less room for manual errors and creating huge time advantages.

Yasmina Siadatan, Chief Revenue Officer at Dynamic Planner said: “The Dynamic Planner ecosystem is continuously expanding and today we are pleased to announce another two-way integration, this time with Adviser Cloud. This will be a game changer for anyone using Adviser Cloud and Dynamic Planner, providing a seamless user experience.

“As the latest in our growing suite of strategic partners, this new CRM integration with Adviser Cloud will continue to transform the processes of financial planning firms and drive significant efficiencies. Integrations are fundamental for our clients and we are committed to our long-term strategy of continuously enhancing the flow of information to and from Dynamic Planner as the system of record.”

Ewan Humphreys, Tech Lead at Adviser Cloud said: “Our integration with Dynamic Planner is designed to make financial planning simpler and more efficient. Adviser Cloud has always focused on providing intuitive, user-friendly software for financial advisers, and this integration continues that mission by eliminating data rekeying and enhancing workflows. This partnership enables advisers to deliver even better client experiences while saving time and reducing operational costs.” Adviser Cloud specialises in intuitive and easy-to-use software for IFAs, designed to reduce costs, increase efficiency, and deliver an exceptional client experience.”

Not a Dynamic Planner user? Schedule a free no-obligation demo with a business consultant and experience the full functionality of Dynamic Planner.

At the Dynamic Planner conference back in March this year, Dame Harriett Baldwin, MP, passionately highlighted to our audience the challenges we as ordinary consumers face in getting support to make choices with money: “Only the rich, the 8% of the population, can benefit from the healthy financial options. The remaining 92% are being left in the generic aisles.” The great unserved.

However, she also offered some hope, both for consumers and for advice firms who recognise the commercial opportunity presented by the unserved population: “With the developments of technology, in particular more powerful artificial intelligence tools, innovators will find ways to give consumers more customised, less generic financial advice.”

All too often as tech specialists, living and breathing this quandary every day we could fall into the trap of navel gazing, so we commissioned research from AdviserSoftware.com, a division of FTRC, to explore the potential for technology to broaden access to financial planning and open up new markets for advice firms. How do consumers actually engage with financial advice, and how will they want to in the future?

FTRC undertook the research, in conjunction with Opinium, in February and April 2024. The survey of 4,000 members of the general public throws up some interesting learnings.

Alongside meetings with their adviser, 62% would like to track their pensions, investments and progress against their financial goals on a mobile phone app. Demand is strongest in the youngest demographic, with 80% of 18-34 year olds expecting a phone-based digital offering to accompany face-to-face advice, but the preference is shared by close to two thirds of those aged 35-55. Even in the older 55+ cohort, 35% would be keen to check in through an app.

As in other walks of our consumer life, the younger generation are increasingly setting the agenda for how people engage with financial information and advice. Their worlds are mobile and app-led and they want to consume their financial planning in the way they access other services. The writing is on the wall.

Clients by age group who wanted pension/investment/goal tracking on an app

By income group, the results are similarly persuasive. Among those earning £60,000 or above, 81% would like to track their pensions and investments via a mobile app. For those with incomes over £80,000, this increases to 88%. This makes intuitive sense: for busy high earners, the seamless instant access to their financial plans that apps can offer is invaluable.

In addition to the consumer survey, FTRC carried out a comprehensive series of interviews with advice firms in 2023 and 2024. The findings were clear. Advisers want to give clients the best service they can, supported by technology that delivers operational excellence. They want the technology in place to ensure they can anticipate the needs of the next generation of clients and remain relevant and competitive.

Over 90% of firms thought having the means to remain in contact with their clients throughout the advice cycle was a real positive. Allowing the client to remain connected to their portfolio, policies, products, goals and other information through an app would strongly benefit the ongoing relationship.

Since our conference, it’s become apparent that expanding access to advice is not the only challenge. In a Consumer Duty world, firms are finding it more difficult to serve even their existing clients profitably, and we have seen the subsequent drop in the size of the advised population as a result. By making use of this channel, firms can pre-empt client queries, automate processes and speed up communication, reducing the cost to serve.

We believe advice businesses planning for their future can no longer ignore the opportunities that apps can bring, that is why we launched Tram, your white labelled app. To hold the financial plan in the palm of your hand will increasingly be an expectation across age groups. Firms that embrace the possibilities can unlock efficiencies, serve more clients, and bring high quality, engaging financial advice to the next generation. I’m personally excited to work with Dynamic Planner firms to grow their engagement and delight their clients.

Find out how you can engage your clients with Dynamic Planner’s mobile app, Tram>