News in Review

‘We have the tools and determination we need to reduce inflation and I am confident the Bank will play their part in making that happen’

The Monetary Policy Committee (MPC) voted to raise Bank Rate last week, hiking the rate from 1% to 1.25%, the fifth consecutive rate rise. The MPC voted six to three to raise the rate by 0.25 percentage points, with the members in the minority voting for a 0.5 percentage point rise to 1.5%. Pushing the Bank of England’s (BoE) benchmark rate above 1% for the first time since 2009; the increase was widely expected, with analysts believing another hike was necessary to rein in inflation.

The MPC revised its inflation forecast to ‘slightly’ above 11% in October, an increase on a previous estimate of 10% and the eighth time the Bank has had to alter its predictions. If this estimate of 11% plays out in the coming months, the 2% inflation target will be overshot almost six-fold. The anticipated increase in October reflects higher projected household energy prices following an additional rise in the Ofgem price cap, plus rising food prices and a tight labour market.

Responding to a letter from BoE Chairman Andrew Bailey, Chancellor Rishi Sunak said that he recognised ‘the impact that high inflation has on households and that it is challenging for households up and down the country to meet their living costs, which is why it is imperative to bring inflation back down to target and to keep it anchored there. I welcome that the Bank is prepared to take firm and decisive action to achieve this.’

Referring to a trio of tools; independent monetary policy, fiscal responsibility and supply side reform, the Chancellor concluded, ‘We have the tools and determination we need to reduce inflation and I am confident the Bank will play their part in making that happen.’

Further rate increases are expected this year, with commentary suggesting that investors are pricing in a 3% base rate by year end. This would require three half-point rate increases and a quarter-point increase at the four remaining meetings of 2022. The next MPC meeting is scheduled for 4 August 2022.

Fed approves largest interest rate rise since 1994

Central banks around the world are taking similar steps, including in the US. Across the pond, Federal Reserve officials agreed a 0.75 percentage point rate rise last Wednesday, increasing the Fed’s benchmark federal-funds rate to a range between 1.5% and 1.75%. The largest US interest rate increase in 28 years, the Fed signposted that it would continue lifting rates in 2022 as it strives to tackle surging inflation. The third rate rise since March, more are expected, with the median Fed policymaker indicating interest rates to sit at around 3.4% by the end of 2022.

At a press conference following the two-day meeting, Fed Chairman Jerome Powell described the rate rise as “unusually large,” adding, “It is essential that we bring inflation down… Inflation has obviously surprised to the upside over the past year and further surprises could be in store. We therefore will need to be nimble.”

By choosing to raise rates more aggressively, the Fed is seeking what it calls a ‘soft landing’ which would slow inflation without causing a recession. The next Federal Open Market Committee (FOMC) meeting will be held during the last week of July.

Travel woes

Railway workers kicked off three days of strikes on Tuesday (21st), with Thursday (23rd) and Saturday (25th) also earmarked, in what is due to be the biggest national rail strikes in 30 years. With only half of Britain’s rail network expected be open on the strike days, with a very limited service, economists expect the strike to cost the nation around £100m.  Kate Nicholls, Chief Executive of UKHospitality, said this is a “huge blow” to businesses already dealing with staff shortages and soaring energy prices, she continued, “Our customers and staff rely heavily on public transport to visit our venues, especially in towns and cities, where recovery is proving most difficult.”

Meanwhile, chaos at UK airports continues, as the aviation industry is still in the process of ramping up staff levels, after many workers were made redundant or changed jobs during the pandemic.

Here to help

Financial advice is key, so please do not hesitate to get in contact with any questions or concerns you may have.

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.

All details are correct at time of writing (22 June 2022)

Net-Zero Asset Owner Alliance boosts efforts on climate change

With a pledge to reduce environmentally damaging emissions from portfolios by half by 2030 and to accelerate sustainable finance, the influential investor group Net-Zero Asset Owner Alliance has ramped up its commitment to tackle climate change.

The prominent investor group, comprising 70 large institutions, has pledged that member firms will aim to reduce emissions linked to their portfolios of investments by between 49% and 65% in the next eight years (to 2030), after including a broader range of carbon-intensive sectors within its target framework.

This new commitment expands previous plans targeting a reduction in portfolio emissions by between 16% and 29% across listed equities, publicly traded corporate bonds and real estate assets by 2025. The newly expanded framework now includes sectors where carbon emission reductions are more challenging to achieve due to production methods, including agriculture, chemicals, water, concrete and aluminium, along with a new asset class – infrastructure equity and debt.

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.

2022’s buy-to-let hotspots

Bristol, Oxford, Cambridge, Manchester and Luton have been hailed the best top five cities for landlords to invest in this year, based on analysis of key indicators impacting BTL desirability (including average total rent, the best short-term returns through yield and long-term return through house price growth)1.

Investors have been eschewing London, which has slipped to sixth place. It seems many landlords are looking to areas with a high student population – where they can attract a greater rental yield.

The Scottish cities of Edinburgh and Glasgow both sit within the top 20 and are cited as ‘particularly attractive to landlords looking for short-term yields.’ Edinburgh benefits from a high percentage of private renters (86%) ensuring one of the highest rental returns of all cities.

Head of Mortgage Distribution at Aldermore Bank, Jon Cooper, commented on the findings, “The City Tracker shows the UK housing market is rich with diverse and unique conditions across the regions that are ripe for investment opportunities. As we move towards a post-COVID environment, we hope this analysis gives food for thought to many landlords on where to look for those hidden gems and returns that meet their business strategies.”

He continued, “Private landlords are a central part of the housing market, supporting over 4.5 million households in the UK and, as we emerge from the pandemic, landlords will need to meet the emerging demand for choice and variety from renters. With the economy opening up and EPC rating changes coming in 2025, now is a great time for landlords to talk with their broker to review where they want to take their portfolios in the future.”

First-time buyer or building up your property investment portfolio? We can provide buy-to-let mortgage advice, get in touch.

1Aldermore, Dec 2021

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.

IHT reporting – all change

Keeping up to date with tax changes can be challenging and you may have missed this one in relation to the reporting of Inheritance Tax (IHT), especially as it’s not something most of us will deal with very often.

‘Excepted estate’

The changes came in at the start of the year and apply to the estate of anyone who dies on or after 1 January 2022. Now, before you make a report to HM Revenue and Customs (HMRC) you need to check whether the estate is an ‘excepted estate’ to make sure you complete the right forms.

There are several reasons why an estate may now be classified as ‘excepted’:

• The estate has a value below the current IHT threshold (£325,000 for one person)

• Any unused threshold is being transferred from a spouse or civil partner who died first, and the estate is worth £650,000 or less

• The estate is worth less than £3m and the deceased left everything in their estate to their surviving spouse or civil partner who lives in the UK, or to a qualifying registered UK charity

• The estate has UK assets worth less than £150,000 and the deceased had permanently been living outside of the UK when they died.

Further details on how to value an estate for IHT and report its value can be found here www.gov.uk/valuing-estate-of-someone-who-died/check-type-of-estate

Your IHT planning

More people are having to pay IHT; HMRC figures show IHT receipts for the period April 2021 to January 2022 to be £5bn, which is a £700m increase on the same period one-year earlier1. IHT planning is a complicated subject, but sensible financial planning can help to reduce the amount of IHT payable and safeguard your wealth for the future.

1HMRC, 2022

The value of investments and income from them may go down. You may not get back the original amount invested. Inheritance Tax Planning is not regulated by the Financial Conduct Authority.

News in Review

The release of the latest Economic Outlook from the Organisation for Economic Co-operation and Development (OECD) last week, highlighted that global GDP is now projected to slow this year to around 3%, remaining at a similar pace next year. This is a downgrade following estimates of 4.5% global growth this year, made last December. Outlining the situation, the OECD deduce ‘The war has set the global economy on a course of slower growth and rising inflation – a situation not seen since the 1970s.’

Aptly entitled ‘The Price of War,’ the report outlines the far-reaching impact of the invasion in Ukraine and its role in triggering a global cost-of-living crisis. Before the war, the global economy was on track for a strong, although uneven, recovery from the pandemic. According to the report, inflation projections currently stand at almost 9% for OECD countries this year, double previous projections. The new projections from the international think tank detail the impact the war is having on inflation, which has already reached 40-year highs in the UK, US and Germany. In fact, data from the US last week pointed to surging levels of inflation, potentially paving the way for a series of aggressive interest rate hikes.

UK GDP is expected to grow by 3.6% this year, before stagnating in 2023. The OECD expect continuing high energy prices, labour and supply shortages to push inflation to a peak of 10% towards the end of the year, reducing to around 4.7% in Q4 2023. In response to the OECD projection for the UK growth forecast, a spokesperson from HM Treasury responded, “While we can’t insulate the UK from global pressures entirely, our economy is in a strong position to deal with these challenges. We have a plan for growth, and we are supporting people with the cost of living.” It is expected that a tight labour market will support consistently low unemployment statistics.

Data from the Office for National Statistics (ONS) released this week showed that UK GDP shrank by 0.3% in April, the first month that all main sectors (manufacturing, construction and services) contributed negatively to GDP since January 2021. The decline was primarily triggered by the reduction of the NHS Test and Trace programme, which fell by 70% in April as tests ceased to be free.

Accelerating the energy transition

In the report, OECD Chief Economist and Deputy Secretary-General, Laurence Boone outlined his thoughts on the need for governments to ‘shift gear’ to speed up the energy transition, ‘Limiting Russia’s ability to finance the war, as is intended by an embargo on Russian oil exports, is essential for speeding up an end to this devastating conflict.’ He continued, ‘The emergency response to a possible energy crisis has turned out to be a stark scramble for alternative sources of fossil fuels and to increase coal use. This can only be temporary as it is the opposite of what the world needs, which is a rapid increase in investment in, and consumption of, cleaner energy.’

Central banks – time to decide

The World Bank has cautioned that a period of high inflation and tepid growth is threatening to ‘derail what is now a precarious recovery,’ citing it would be ‘hard’ for many countries to avoid recession. The warning comes as the European Central Bank has signalled an end to its pandemic-era money-printing programme, paving the way for the first interest rate hike in eleven years. This week the Bank of England and the US Federal Reserve will conclude their latest monetary policy meetings. It’s time to decide whether they too should lift interest rates even higher to tame inflation or resist as the economy slows.

UK housing market records 10.5% annual price growth

The Halifax House Price Index has shown that average house prices have risen 10.5% in the year to May, to a new record of £289,099. Although the eleventh consecutive month of increases, the pace of growth has started to moderate, from the 10.8% (in the year) recorded in April.

Here to help

Financial advice is key, so please do not hesitate to get in contact with any questions or concerns you may have.

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.

BTL investors tap into domestic holiday demand

Pandemic-related travel restrictions have unleashed huge demand for UK-based rentals among British holidaymakers – with buy-to-let (BTL) investors scrambling to take advantage.

According to figures1, holiday let mortgage availability has trebled since 2020, giving would-be investors ample opportunity to tap into this demand. There are now 231 buy-to-let mortgages eligible for holiday lets on the market, versus just 74 back in August 2020.

As the number of deals increases, competition between lenders is also on the rise, with average rates reducing from 4.14% in September 2021 to 3.92% in January 2022.

Factors to consider

If you’re thinking about investing in a holiday let, there are some factors to consider before taking the plunge. Firstly, the government is currently working to close a tax loophole that has seen people claiming tax relief on empty ‘holiday lets’. Holiday let owners will soon be required to prove that their property is being let for at least 70 days each year in order to claim small business tax relief.

Secondly, it’s important to think about the cost of purchasing a holiday let above and beyond the property itself. For example, you may have to spend a significant amount up-front to get the property ready for holiday let clientele. You’ll also have to consider how much the property is likely to generate in rental income – is it in a good enough location to attract a steady stream of holidaymakers?

Weigh it up

We’ll be able to help you weigh up the various factors and recommend mortgage finance that’s suitable for your needs.

1Moneyfacts, 2022

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.

How to value financial advice

In recent times the importance of expert financial advice has become greater than ever, as people seek reassurance that their pensions, investments and protection plans are being professionally looked after during uncertain times.

Good financial outcomes are obviously important, but these can only be measured over the long term and are just one way of assessing the value that advice can provide.

The real value in taking advice is about the whole journey of financial planning so that you are provided with a consistent, valued and trusted experience; with regular reviews and adapting to changes when needed. Financial and emotional outcomes play their part in unison.

The benefits of working with an adviser

Some of the benefits may not be immediately obvious, such as:

• Understanding your circumstances by listening, and helping you to identify and achieve your goals – no two clients will have the same requirements

• Making complex matters easy to understand – a seemingly straightforward financial goal could involve numerous decisions as well as considering a range of different products and providers

• Ongoing support and guidance – regular reviews and contact can set your mind at rest and prevent you from making knee-jerk decisions at the wrong time

• Saving you time – doing your own research can be very time-consuming and would you know where to start?

• Giving you peace of mind – by knowing that your finances are in expert hands and that any change in your circumstances can be discussed with someone who knows you personally

• Getting financial outcomes that matter to you – by working with you over the long term.

Here for you

In uncertain times, you can rest assured that we are here to support you with all your financial planning needs.

The value of investments and income from them may go down. You may not get back the original amount invested.

News in Review

‘There’s a real pent-up desire among the population to get out and enjoy itself’

Over the last week, the Queen’s Platinum Jubilee celebrations largely dominated the news. The extended bank holiday weekend provided an opportunity for people and communities throughout the UK to come together to celebrate the historic milestone. Official events over the long weekend included Trooping the Colour, Beacon Lighting, a Service of Thanksgiving, a Party at the Palace and a Pageant topping off the celebrations on Sunday.

With four days of festivities for the nation to enjoy, leading trade bodies UKHospitality, the British Institute of Innkeeping (BII), Hospitality Ulster, and the British Beer and Pub Association (BBPA) expect the hospitality industry to have enjoyed a bumper weekend of takings, with predictions of a 22% increase in trade over the four-day celebrations.

In a joint statement, the four trade organisations outlined, ‘At last, our beleaguered sector is able to look forward to the sort of trading period that will give it a massive boost as it sets out on the long road to post-pandemic recovery. There are still lots of hurdles that businesses have to clear on the way back to profitability – huge cost increases, a staffing crisis, rising COVID rent repayments and too much red tape – but these four days will do wonders for income and for employee morale. It’s also a wonderful, celebratory moment for millions of people who’ve been denied the opportunity to socialise with friends and family for far too long, and we sense there’s a real pent-up desire among the population to get out and enjoy itself.’

With the Jubilee weekend expected to provide a massive boost to UK retail and hospitality businesses, revellers are expected to have spent in excess of £2bn on food and drink supplies, while pubs, bars and restaurants are hoping for £3bn in sales, £400m more than during a normal Thursday to Sunday in May. UK retail footfall was forecast to rise 8% over the weekend, with a 10% jump on high streets.

PM wins vote of no confidence

On Monday night, Conservative MPs voted by 211 to 148 to retain Boris Johnson as Prime Minister and party leader. The result means the PM cannot be challenged from within the Conservative ranks for one full year. The vote was called after 54 Conservative MPs submitted letters to the 1922 Committee demanding that Boris Johnson’s leadership be contested.

Help to Buy application deadline brought forward

Homes England have revealed that the government’s Help to Buy scheme is winding down two months earlier than initially planned. The deadline has been updated on the government’s website, ‘The Help to Buy: Equity Loan scheme will close to new applications at 6pm on 31 October 2022,’ brought forward from 31 December 2022.

Recent data published by the Department for Levelling up, Housing and Communities showed that 8,913 properties were purchased with an equity loan under the scheme in Q4 2021, down 41% on Q4 2019, prior to the pandemic.

“Blockbuster” jobs data across the pond

The latest data from the US Labor Department showed that US employers added more new jobs than expected in May, with payrolls rising by 390,000, exceeding forecasts of a 325,0000 rise. Although the increase was the slowest for a year, the unemployment rate held at 3.6% for the third consecutive month. The annual rate of inflation in the US was 8.3% in the year to April, a small drop from 8.5% recorded for March which was the highest rate since 1981. On Friday, US President Joe Biden said that the economy was moving to a “new period of stable, steady growth.” He continued, “We aren’t likely to see the kind of blockbuster job reports month after month like we had over this past year, but that’s a good thing. That’s a sign of a healthy economy with steady growth, rising wages for working families, everyday costs easing up, and shrinking the deficit. That stability puts us in a strong position to tackle what is clearly a problem: inflation.”

Here to help

Financial advice is key, so please do not hesitate to get in contact with any questions or concerns you may have.

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.

All details are correct at time of writing (8 June 2022)

Economic Review – May 2022

Bank warns of deteriorating outlook

The Bank of England (BoE) has warned that the UK faces a “sharp economic slowdown” in the coming months as it continues to raise interest rates in a bid to dampen rapidly rising prices.

Following its early-May meeting, the BoE’s nine-member Monetary Policy Committee (MPC) voted by a 6-3 majority to increase the Bank Rate from 0.75% to 1.0%, with the three dissenting voices each calling for a bigger hike to 1.25%. This was the fourth successive meeting that the MPC had raised rates, taking them to their highest level since 2009.

Central banks around the world are currently scrambling to cope with surging inflation which began after the post-pandemic reopening of the global economy and has continued to spiral following Russia’s invasion of Ukraine. Policymakers, however, are also trying to avoid sending their economies into a slump, which is creating a policy dilemma.

Speaking after the MPC announcement, BoE governor Andrew Bailey admitted, “We are in a very difficult position.” He added, “We’re walking a very narrow path between inflation on the one side, which is much higher than we want it to be, and on the other side very big external shocks which are causing a big loss of real income for people and businesses in this country.” Mr Bailey went on to warn of a “material deterioration in the outlook” for growth.

While falling short of predicting a technical recession – defined as the economy shrinking in two consecutive quarters – the BoE is now forecasting a decline in growth across the final three months of this year, with the economy then contracting by 0.25% in 2023. Minutes from the May MPC meeting though still point to further rate rises ‘in the coming months,’ with BoE Chief Economist Huw Pill recently warning “tightening still has further to run.”

Cost of Living Support package

After facing mounting pressure, Chancellor Rishi Sunak has unveiled a further package of measures designed to ease the impact of soaring prices on household finances.

The announcement, made in the Commons on 26 May, was the Chancellor’s second emergency policy intervention of the year and came days after energy regulator Ofgem said its gas and electricity price cap looks set to rise by 40% in October. The move would see the average household energy bill rise by a further £800 a year to £2,800, prompting Ofgem to warn that the number of people living in fuel poverty could double to 12 million.

Mr Sunak said the new package offered “significant support for the British people” with every household set to receive an energy bill discount of £400 in October, with extra financial help targeted at poorer households, pensioners and the disabled. In total, the Chancellor said the combined measures were worth £15bn, taking the overall amount of government support pledged this year to around £37bn.

The Chancellor also announced that the cost of the support package will be partly offset by a “temporary and targeted energy profits levy” on oil and gas firms which will see the tax rate on North Sea profits rise from 40% to 65%. This temporary increase is expected to raise £5bn for the exchequer this year but will be phased out when oil and gas prices return to normal levels.

Responding to the announcement, Institute for Fiscal Studies Director Paul Johnson said, “Rishi Sunak has announced a genuinely big package of support. On average the poorest households will now be approximately compensated for the rising cost of living this year.” However, Mr Johnson also suggested that, if energy prices remain high or rise further, “it may turn out hard to ensure these changes are genuinely temporary.”

Markets (Data compiled by TOMD)

At the end of May, EU leaders moved toward an agreement in principle to ban 90% of Russian oil imports by the end of the year, pushing the price of Brent Crude higher. This benefited the blue-chip FTSE 100 as energy giants ventured into positive territory on the news.

In addition, one of the indices largest stocks, consumer goods giant Unilever, jumped following news that activist investor Nelson Peltz was appointed to the board, heightening expectations of an overhaul at the company.In the UK, the FTSE 100 closed May on 7,607.66, a gain of 0.84%, while the FTSE 250 and AIM recorded monthly losses of 1.40% and 4.55% respectively. In Japan, the Nikkei 225 ended May on 27,279.80, up 1.61%, and the Euro Stoxx 50 closed the month down 0.36% on 3,789.21.

A favourable batch of quarterly earnings and signs that recent economic data prices were peaking helped buoy investor sentiment in the US during the month. Following the Memorial Day holiday, President Biden and Fed Chair Jerome Powell met to discuss containment measures to combat rising consumer prices, supply chain disruptions and soaring energy costs, which are weighing heavily on the economy and markets. The Dow closed May up just 0.04%, while the NASDAQ finished down 2.05%.

On the foreign exchanges, sterling closed the month at $1.26 against the US dollar. The euro closed at €1.17 against sterling and at $1.07 against the US dollar.

Brent Crude closed the month trading at around $118 a barrel, a gain of 9.31%. Gold is currently trading at around $1,854 a troy ounce, a loss of 3.19% on the month.

Inflation hits 40-year high

Official UK inflation statistics show consumer prices are now rising at the fastest rate in four decades driven by the sharp rise in energy bills.

Data released last month by the Office for National Statistics (ONS) revealed that the Consumer Prices Index 12-month rate – which compares prices in the current month with the same period a year earlier – rose to 9.0% in April. Although the figure was broadly in line with analysts’ expectations, it does represent a considerable jump from the previous month’s rate of 7.0%.

ONS said that around three quarters of the rise was due to higher electricity and gas bills following Ofgem’s price cap increase which was introduced at the beginning of the month. In addition, higher fuel and food prices driven up by the Ukraine war were also notable upward contributors to April’s figure.

Price pressures look set to continue building over the remainder of this year, with the BoE’s latest forecast suggesting inflation will average ‘slightly over 10%’ at its peak during the final quarter of 2022. The bulk of this anticipated further increase will be due to higher household energy bills from October as a result of the energy regulator’s next price cap review.

Job vacancies outpacing unemployment

Although the latest batch of employment statistics shows vacancies currently exceed the number of unemployed people in the UK, there are signs that the jobs market may be cooling a little.

Figures released last month by ONS showed the unemployment rate fell to 3.7% between January and March, its lowest level in almost 50 years. There was also another rise in vacancies which hit a fresh high of 1.3 million; as a result, the number of people out of work is now less than available job openings for the first time since records began.

The data also revealed that the number of people changing jobs hit a record high which ONS said was ‘driven by resignations rather than dismissals.’ Overall, however, ONS did say the latest release painted ‘a mixed picture’ with total employment, although up on the quarter, still below its pre-pandemic level.

Survey evidence also suggests the labour market may be starting to cool. The latest permanent staff placements index from KPMG and the Recruitment and Employment Confederation, for instance, fell to 59.8 in April. While any reading above 50 still implies growth, this was the fifth consecutive monthly decline and the lowest figure since March 2021.

It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor. No part of this document may be reproduced in any manner without prior permission.

FCA outlines plans to get people investing

The Financial Conduct Authority (FCA) has launched a new strategy to give consumers the confidence to invest, safe in the knowledge they are supported by a high-quality advice market; and to help them do so safely, which should lead to fewer people being scammed or investing in products that are too risky for their needs.

As part of the strategy the FCA is launching an awareness campaign to target people who may have invested for the first time during the pandemic, often into cryptocurrencies, mainly for the thrill of investing rather than for long-term savings goals or alignment to their needs.

The FCA is also concerned about the high numbers of people who could benefit from investment earnings but are missing out by keeping money in cash. Nearly 8.6 million people currently hold more than £10,000 of investible assets in cash. By 2025 the FCA intends to reduce by 20% the number of consumers who could benefit from investment earnings but are currently missing out. In addition, it intends to reduce the money consumers lose to investment scams (£570m in 2020-21, tripled since 2018).

Sarah Pritchard, FCA Director of Markets said, “We want to give consumers greater confidence to invest and to help them do so safely, understanding the level of risk. The package of measures we have announced today are intended to support that – we want people to have greater confidence to invest.”

The value of investments and income from them may go down. You may not get back the original amount invested.