Granite guidance

Granite Financial Planning is pleased to announce they are a finalist in the Retirement Planner Awards 2019 for the category “Best Individual Pension Advice Firm of the Year’.

Professional Adviser revealed the shortlists for its sister title Retirement Planner's 2019 Awards, the winners of which will be announced on Friday 14 June at a ceremony at The Marriott Hotel Grosvenor Square, London W1K.

Firms were invited to provide a submission with all entries then being assessed by an independent panel of expert judges.

As a tax-efficient way to save for retirement, pensions offer a route to long term financial security. To highlight the importance of retirement planning in the UK, this year's Retirement Planner Awards will celebrate how providers and intermediaries are rising to the challenge of pension provision, particularly in light of the 2015 pension freedoms and the increasing number of pension scams.

Those intermediaries who are at the forefront of dynamic and fresh ways to offer retirement planning and pensions advice services have been selected to highlight the work undertaken.

Managing Director, Paul Gibson said: “To be a finalist in this category again is fantastic as we were Highly Commended last year and hope to go one better this year.

Retirement planning forms a major part of our work and we continually try and improve our service in this area.

Retirement can be a scary prospect for many and our job is to help ensure that our clients do not run out of money and are able to live an independent and dignified retirement.”

Granite Financial Planning are based in Banchory with meeting rooms available in Aberdeen.

 

The investment world recently lost an investment legend and below is a tribute by Vanguard to their founder Jack Bogle.

Vanguard regrets to announce the passing of our founder John Clifton Bogle, who died on 16 January 2019 at his home in Bryn Mawr, Pennsylvania. He was 89.

Mr Bogle had near-legendary status in the investment community, largely because of two towering achievements:

  • He introduced the first index mutual fund for individual investors and, in the face of sceptics, stood behind the concept until it gained widespread acceptance.
  • He drove down costs across the mutual fund industry by ceaselessly campaigning in the interests of investors. Vanguard, the company he founded to embody his philosophy, is now one of the largest investment management firms in the world.

"Jack Bogle made an impact on not only the entire investment industry, but more importantly, on the lives of countless individuals saving for their futures or their children's futures," said Vanguard CEO Tim Buckley. "He was a tremendously intelligent, driven and talented visionary whose ideas completely changed the way we invest. We are honoured to continue his legacy of giving every investor 'a fair shake'."

"The Vanguard Experiment"

Under Mr Bogle's tutelage, The Vanguard Group, Inc., began operations on 1 May 1975. He called the new venture "The Vanguard Experiment", where mutual funds would be operated at cost and independently. Vanguard thus represented a radical change from the traditional mutual fund structure, in which an external management company manages a fund for profit.

"Our challenge at the time," Mr Bogle recalled a decade later, "was to build … a new and better way of running a mutual fund complex. The Vanguard Experiment was designed to prove that mutual funds could operate independently, and do so in a manner that would directly benefit their shareholders."

An aficionado of naval history, Mr Bogle named the company after Admiral Horatio Nelson's flagship at the Battle of the Nile in 1798; he thought the name "Vanguard" resonated with the themes of leadership and progress. The nautical theme can still be seen in Vanguard's logo and communications to shareholders.

"Father of indexing"

In 1976, in the United States, Vanguard introduced the first index mutual fund for individual investors. Ridiculed by others in the industry as "un-American" and "a sure path to mediocrity", the fund collected a mere US$11 million during its initial underwriting. It has now grown to be one of the industry's largest, with more than US$400 billion in assets. Today, index funds account for more than 70% of Vanguard's US$5.1 trillion in assets under management globally; they are offered by many other fund companies as well and they make up most exchange-traded funds (ETFs). For his pioneering of the index concept for individual investors, Mr Bogle is often called the "father of indexing".

Standing up for the individual investor

Mr Bogle and Vanguard again broke from industry tradition in 1977, when Vanguard ceased to market its funds through brokers and instead offered them directly to investors. The company eliminated sales charges and became a pure no-load mutual fund complex – a move that would save shareholders hundreds of millions of dollars in sales commissions.

A champion of the individual investor, Mr Bogle is widely credited with helping to bring increased disclosure about mutual fund costs and performance to the public. His commitment to safeguarding investors' interests often prompted him to speak out against practices that were common among his peers in other mutual fund organisations.

"We are more than a mere industry," he insisted in a 1987 speech before the National Investment Company Services Association. "We must hold ourselves to higher standards, standards of trust and fiduciary duty. Change we must – in our communications, our pricing structure, our product and our promotional techniques."

Early career

The New Jersey native began his career in 1951 after graduating magna cum laude in economics from Princeton University. His senior thesis on mutual funds had caught the eye of fellow Princeton alumnus Walter L. Morgan, who had founded Wellington Fund, the nation's oldest balanced fund, in 1929, and was one of the deans of the mutual fund industry. Mr Morgan hired the ambitious 22-year-old for his Philadelphia-based investment management firm, Wellington Management Company.

Mr Bogle worked his way up through the ranks, and, in 1967, he was named president. Mr Bogle became the driving force behind Wellington's growth into a mutual fund family after he persuaded Mr Morgan to start an equity fund that would complement Wellington Fund. Windsor Fund debuted in 1958.

In 1967, Wellington Management Company merged with the Boston investment firm Thorndike, Doran, Paine & Lewis (TDPL). Seven years later, a management dispute with the principals of TDPL led Mr Bogle to form Vanguard in September 1974 to handle the administrative functions of Wellington's funds, while TDPL/Wellington Management would retain the investment management and distribution duties.

Beyond Vanguard

Health problems caused Mr Bogle to step down as Vanguard's chief executive officer in 1996. The same year, he underwent a heart transplant. A self-described "battler by nature", Mr Bogle came through the surgery with flying colours. He returned to work as senior chairman until 1999, when he turned 70, the maximum age for a Vanguard board member. Mr Bogle never actually retired; he became president of the Bogle Financial Markets Research Center to continue his work on behalf of investors. He also continued to write and speak about the industry.

Awards and accomplishments

In 2004, Time magazine named Mr Bogle one of "the world's 100 most powerful and influential people" and Institutional Investormagazine presented him with its Lifetime Achievement Award. In 2010, Forbes magazine described him as the person who "has done more good for investors than any other financier of the past century." Fortune magazine designated him one of the investment industry's four "Giants of the 20th Century" in 1999. In January 2012, some of America's most respected financial leaders celebrated his career at the John C. Bogle Legacy Forum.

Mr Bogle served on several US investment industry boards: chairman of the board of governors of the Investment Company Institute (1969–1970) and chairman of the NASD's (now FINRA) Investment Companies Committee (1972–1974). In 1997, he was appointed by then-SEC Chairman Arthur Levitt to serve on the Independence Standards Board.

Mr Bogle was sought after in the corporate community and served as a director for several corporations. He received honorary doctorate degrees from 14 universities, including his alma mater, Princeton.

Civic work

An avid booster of Philadelphia and the surrounding area, Mr Bogle was active in civic affairs. "I loved Philadelphia, my adopted city that had been so good to me. I established my roots there, finding even more unimaginable diamonds," he wrote in one of his many books.

His civic work extended to organisations involved in education, leadership and public affairs. He served as the first chairman of the board of trustees and chairman emeritus for the National Constitution Center. Former US President Bill Clinton was also on the board and later wrote the foreword to the paperback edition of Mr Bogle's book Enough. True Measures of Money, Business, and Life.

Sportsman and family man

Mr Bogle was born on 8 May 1929 in Montclair, New Jersey. He worked his way through Blair Academy and Princeton University as a waiter and also managed Princeton's athletic ticket office.

A tall, athletic man who sported a crew cut for most of his life, Mr Bogle played squash, tennis and golf, and also enjoyed sailing. He was often described as a "fierce competitor" on the court and course, a demeanour he also maintained on the job. Reading was among his pleasures, as was The New York Times crossword puzzle, which he often completed in less than 20 minutes.

He married Eve Sherrerd in 1956. The couple had six children – daughters Barbara Bogle Renninger, Jean Bogle, Nancy Bogle St. John, and Sandra Bogle Marucci, and sons John C. Bogle Jr and Andrew Armstrong Bogle. They had 12 grandchildren and six great-grandchildren.

Books by John C. Bogle

  • Bogle on Mutual Funds: New Perspectives for the Intelligent Investor (1993)
  • Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor (1999)
  • John Bogle on Investing: The First 50 Years (2000)
  • Character Counts: The Creation and Building of The Vanguard Group (2002)
  • Battle for the Soul of Capitalism (2005)
  • The Little Book of Common Sense Investing (2007)
  • Enough. True Measures of Money, Business, and Life (2008)
  • Common Sense on Mutual Funds: Fully Updated 10th Anniversary Edition (2009)
  • Don't Count on It! Reflections on Investment Illusions, Capitalism, "Mutual" Funds, Indexing, Entrepreneurship, Idealism, and Heroes (2011)
  • The Clash of the Cultures: Investment vs. Speculation (2012)
  • The Little Book of Common Sense Investing: 10th Anniversary Edition (2017)
  • Stay the Course: The Story of Vanguard and the Index Revolution (2018).

Important Information

The material contained in this document is not to be regarded as an offer to buy or sell or the solicitation of any offer to buy or sell securities in any jurisdiction where such an offer or solicitation is against the law, or to anyone to whom it is unlawful to make such an offer or solicitation, or if the person making the offer or solicitation is not qualified to do so. The information in this document is general in nature and does not constitute legal, tax, or investment advice. Potential investors are urged to consult their professional advisers on the implications of making an investment in, holding or disposing of [units/shares] of, and the receipt of distribution from any investment.

The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.

Vanguard Asset Management, Limited only gives information on products and services and does not give investment advice based on individual circumstances. If you have any questions related to your investment decision or the suitability or appropriateness for you of the products described in this article, please contact your financial adviser.

Issued by Vanguard Asset Management, Limited which is authorised and regulated in the UK by the Financial Conduct Authority.

We all love a bargain, hence the popularity of Black Friday in the UK which has now extended to almost every industry. I say almost as if you invest in an actively managed UK investment fund you are unlikely to find any Black Friday deals or discounts on offer.

The fund management industry in the UK is huge and manages over £6.9 trillion of assets. Charges for actively managed funds, however, remain stubbornly high with average costs estimated to be 0.9% per annum. These generally do no change whether the fund is £1million in size or £10 billion in size. Economies of scale must exist, but these are not being passed on to customers and explains why fund managers profit margins remain eye wateringly high.

Do higher charges lead to higher returns? The answer is an overwhelming no.

Standard & Poors produces regular scorecards showing that active fund managers consistently underperform against their benchmarks over the longer term.

Whilst some active fund managers do outperform the chances of predicting this in advance is in my opinion virtually nil. As Jack Bogle of Vanguard famously said, "rather than trying to find a needle in the haystack buy the haystack."

There are a band of Financial Planners who offer evidence based investment advice using low cost asset class funds to drive the investment engine. Granite Financial Planning are proud to be one of them.

As Black Friday deals are unlikely to be forthcoming if you would like to see if we can reduce your investment costs please contact us on 01330 826544.

 

 

 

Granite Financial Planning is delighted to announce they were "Highly Commended" in the CISI (The Chartered Institute for Securities & investment) David Norton Building Excellence Award at the 2018 Financial Planning awards held in Birmingham.

The nationwide award is named after one of the founding members of the Institute of Financial Planning, David Norton, and since its launch in 2007, the award is given annually to one business that has demonstrated excellence in their values, business strategy and structure.

Managing Director Paul Gibson said “As a relatively new business being recognised at national level is a fantastic endorsement of the work we do. David Norton was passionate about delivering financial planning and we believe it is the most important function a financial planner can perform.

The application and interview process looked at our approach to financial planning, our business plan, use of technology and whilst we were Runners Up on this occasion we will aim to continually improve our service going forward."

CISI head of Financial Planning Jacqueline Lockie CFP FCSI, said: “We are delighted to congratulate such worthy winners of this year’s Financial Planning awards.   

“It shows how good and healthy Financial Planning is in the UK.  The winners are at various stages of their own personal and business Financial Planning journeys and it is a privilege to be able to recognise the best.   

“We congratulate all the entrants for their hard work and effort that they put in not just for these awards, but on a daily basis to provide great Financial Planning to their clients.”  


 

 

 

 

 

Granite Financial Planning was “Highly Commended” in the Best Individual Pensions Advice Firm of the Year category at the 2018 Retirement Planner Awards.

Firms were invited to provide a submission with all entries then being assessed by an independent panel of expert judges. 

Retirement Planner editor Jenna Towler said: "All the submissions were of a very high standard showing just how impressive the people working in the retirement planning and advice space really are. 

"Retirement advice is, as ever, an extremely important part of a financial adviser's business. Our winners and highly commended entrants deserve recognition and praise for their efforts." 

The ceremony was held at the Waldorf Hotel in London. Paul is pictured receiving the award from Julian Marr of Retirement Planner.  

Managing Director, Paul Gibson said: “To be Highly Commended in this category is fantastic as retirement planning forms a major part of our work and we continually try and improve our service in this area. 

Our aim is to offer a first-class retirement planning service to a limited number of clients at a price that represents real value for money.” 

Granite Financial Planning are based in Banchory with meeting rooms available in Aberdeen and London.

 

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Granite Financial Planning Ltd is Authorised and Regulated by the Financial Conduct Authority | FCA No. 734432.
Registered in Scotland | Registered no. SC522812 | Registered address: Banchory Business Centre, Burn O’Bennie Road, Banchory, Aberdeenshire AB31 5ZU | Telephone: 01330 826544 | Email This email address is being protected from spambots. You need JavaScript enabled to view it.

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The general financial planning guidance provided in this website is based on our understanding of current law and HM Revenue & Customs practice, which are subject to change in the future. Whilst every effort is made to ensure the content of this website is correct, it does not constitute personal financial advice and Granite Financial Planning Ltd cannot accept any responsibility for it. There is a risk that investment returns may not achieve the desired result. Investments can go down as well as up. The Financial Ombudsman Service (FOS) is an agency for arbitrating on unresolved complaints between regulated firms and their clients. Full details of the FOS can be found on its website at www.financial-ombudsman.org.uk. Cookies are used on this website to record visitor numbers for analytics purposes.