Mergers and acquisitions  

M&A activity will continue in advice industry

Hollands said while there are signs the trading frenzy has calmed down as restrictions on social contact eased, the rise of a new wave of investors acts as both an opportunity and a challenge for advice firms to engage with them as potential future clients and guide them to see the benefits of investing for the longer rather than short-term. 

He said: “As the year drew on, vaccine-fuelled optimism was eclipsed by the emergence of a new ‘wall of worry’ as supply chain log-jams and a tightening labour market sparked an inflationary surge. 

“Central banks have doggedly insisted this inflation wave is ‘transitory’ but the signs are that it may linger for some time yet.”

For advisers and wealth managers, rising inflation has increased the need to encourage clients to review the balance they have between cash savings – which rose sharply during the lockdowns – and investment portfolios, he explained.

It has also offered them the opportunity to revisit their asset allocation mix both between equities and bonds but also between value and growth stocks.

sonia.rach@ft.com

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