The never-ending January period is finally over, hurrah! I think we have all had enough of miserable weather, biblical downpours, and freezing spells (without the fun of having a snow day). I’d love to say that the financial services industry has left the gates with a strong start, but there is a feeling of uncertainty that has carried over from 23 into 24. If rates fall it will be a different story. There is a feeling from clients that there is a lot of money on the sidelines waiting to find a home in a more positive environment. Of course, January can sometimes start slowly, with many returning to work in the second week. Plans of growth and hiring are usually lower down on the list as most work through their to do lists and find their feet again after Christmas. Although this sounds very doom and gloom, it is actually the opposite. January is an incredibly important month to set the tone for the remainder of the year, and as we look forward to seeing what 2024 brings, I thought it might prove useful to hear what I have been noticing over the past month.

In this article, I’ll explore the following trends/issues:

• Face to face networking
• The increasing difficulty of selling into Wealth Managers.
• Redundancies and shrinking asset managers.

Perhaps one of the most noticeable trends of January is the desire to network on a face-to-face basis. Rewind just 2 years ago, webinars and digital events were seeing record numbers as people shielded and were uninterested in travelling 30mins from home, let alone an hour. Fast forward to today, traffic on the road has increased and trains are looking a little more cramped.

I have definitely seen more interest in a coffee chat, rather than Teams and this has been reflected in the clients I have met with. In some cases, I have heard that networking events have been oversubscribed as clients are keen to leave their home offices for a different environment. Whilst there remains a big place for digital events, time should be invested in face to face where there is demand.

Although we cover a varying client base (Institutional, Wholesale/discretionary, Retail) we cannot deny a common theme is the increasing difficulty of selling into the adviser space as consolidation becomes a prevalent obstacle. It’s becoming a market of haves and have nots. Brand power has a lot to answer for when it comes to getting a foot in the door, and whilst it isn’t impossible to fundraise for a boutique (product agnostic), it is certainly not an easy feat. In light of this, we are seeing immediately available candidates turn down opportunities to work for a boutique, with the hope that something else springs up.

Ardevora was the latest asset manager to reveal they were closing down. It’s always difficult to read about a business closing or shrinking within such little time of other big names (Liontrust, Brooks Macdonald to name a few). There is an undeniable amount of talent in the market at the moment, but it feels as though the grass isn’t greener in any house. This will change, as it always inevitably does. As mentioned, the interest rates affect financial markets, confidence, and few would argue that they will be higher this time next year. To that end, we expect strong firms to continue to make acquisitions.

In conclusion, as we bid farewell to the seemingly endless month of January, we find ourselves navigating an industry landscape marked by both challenges and opportunities. It is important to note that as much as caution is afoot, behind the scenes conversations around growth are prosperous, laced with the notion that interesting markets are coming.