Charles Stanley’s Bob Campion and Gary White comment on different aspects of today’s Mini-Budget announcement

by | Sep 23, 2022

Share this article

Charles Stanley’s Chief Investment Commentator, Garry White, and their Senior Portfolio Manager, Bob Campion have commented on Kwasi Kwarteng’s mini-budget announcement. 

Garry White comments: “Global investors failed to be impressed by Kwasi Kwarteng’s “great growth gamble”. British shares fell, UK gilt yields surged to almost 4%, and the pound hit a 37-year low against the dollar. Chancellor Kwasi Kwarteng’s announced a series of tax cuts – the largest since 1972 – while also boosting spending, measures that will turbocharge the country’s national debt. Gilt yields surged as the UK Debt Management Office laid out plans for additional issuance to fund this planned spending.

“A rise in the pound would have meant that the UK’s growth outlook would have materially improved. Investors believe that tax cuts and increased public spending could make the UK’s economic situation even worse – and see this gamble as risky. Just putting money into the economy does not result in sustainable long-term growth. We need more entrepreneurship and an upskilled workforce – moves that should help resolve Britain’s lacklustre productivity.”

Bob Campion comments: While performance fees can help align the interests of fund managers and their clients, it would be a heroic assumption to think that excluding performance fees from a cap for DC members will lead to better outcomes for them. There is no reason to believe that paying fund managers higher fees leads to better performance. Chancellor Kwasi Kwarteng should not be looking to DC members for the “new sources of capital investment” that he believes are required.”

 

Share this article

Related articles

Winners of the Protection Guru Awards 2022 are announced

Winners of the Protection Guru Awards 2022 are announced

Protection Guru, has today announced the winners of Protection Guru Awards 2022. In this, their second year, the awards have been established to recognise the leading lights of the protection industry. The team at IFA Magazine extends our congratulations to all this...

Trending articles

IFA Talk logo

IFA Talk is our flagship podcast, designed to fit perfectly into your busy life, bringing the latest insight, analysis, news and interviews to you, wherever you are.

IFA Talk Podcast - listen to the latest episode