M&g Plc · LSE:MNG
M&g — Investor Presentation (2023)
38 slides from M&g's investor presentation, 2023
Slide 1: Is it Friend, Foe or FAD – Cashflow modelling is for life not just retirement
Is it Friend, Foe or FAD – Cashflow modelling is for life not just retirement! with The information that follows is based on our understanding of current taxation, legislation and HM Revenue & Customs practice all of which are liable to change without notice. This is just for UK advisers – it’s not
Slide 2: Who we are
WHO WE ARE m@ Pru CJ mac weatth O M&G Investments &G
Slide 3: Pru & M&G Investments Platform
Listening to You Supporting You Pru & M&G Investments • Smoothed, planet-friendly and Risk Managed funds Platform • Wide range of OEICs • Full range of tax wrappers – Technical Expertise Thought Leadership both onshore and offshore • Full asset universe plus Model Portfolio service and bespoke portf
Slide 4: Important information
Important information This content is based on our understanding of current taxation, legislation and HM Revenue & Customs practice all of which are liable to change without notice. The impact of any taxation (and any tax reliefs) depends on individual circumstances. Where content includes case stud
Slide 5: Important notice: FinCalc
Important notice: FinCalc M&G plc and its entities has no association with FinCalc and it’s your responsibility to carry out appropriate due diligence on the firms. Other services of a similar nature may be available or may become available. Data sharing As M&G Wealth (part of M&G plc) and FinCalc h
Slide 6: Our learning objectives for the session
Our learning objectives for the session 1 2 3 4 Demonstrate how Explain how Cashflow Cashflow modelling Demonstrate how Demonstrate your modelling can can be used in the Cashflow modelling capacity for loss assist advisers with advice process to can help clients process by effective their Consumer h
Slide 7: Cashflow week
Cashflow week Describe how Cashflow modelling can be used for effective IHT planning. Explore Digital fact finds and software integration and how Cashflow modelling can be used for protection planning. Explain the impact of different retirement income strategies This is just for UK advisers – it’s n
Slide 8: Provider insight
Provider insight Gavin has been working in the Financial Services industry for over 20 years. Gavin joined O&M in 2005 as a paraplanner and transfers technician. After achieving Pension Transfer Specialist status, he moved to the IFA team in 2008. Gavin now works as a key component in the FinCalc ar
Slide 9: Section 1: Cashflow modelling is just a FAD!
Section 1: Cashflow modelling is just a FAD!
Slide 10: Cashflow modelling in the press
Cashflow modelling in the press ‘The future of cashflow modelling’ – Money Marketing Nov 2020 Started the debate around how important cashflow modelling could be in the market. Consumer duty has made the market think more about this as we are seeing more and more IFA networks looking to provide mode
Slide 11: Types of cash flow modelling
Types of cash flow modelling Stochastic Deterministic Assumptions: • Reasoned and reasonable • Reflect the assets that you’re invested in • Stress test • Go beyond average life expectancy This is just for UK advisers – it’s not for use with clients
Slide 12: How do I measure capacity for loss?
How do I measure capacity for loss? Client ABILITY What Client All about the expenditure? discussion Numbers This is just for UK advisers – it’s not for use with clients
Slide 13: Establishing the need & potential cross over from FG21/3
Establishing the need & potential cross over from FG21/3 Discretionary Lifestyle Capacity for loss? Essential https://www.fca.org.uk/publication/finalised-guidance/fg21-3.pdf This is just for UK advisers – it’s not for use with clients
Slide 14: Demo of FinCalc: Stress testing demo
Demo of FinCalc Stress testing demo See replay recoding This is just for UK advisers – it’s not for use with clients
Slide 15: PFS good practice guide: Use of cashflow modelling
PFS good practice guide 4. Use of cashflow modelling Robust Cash Flow modelling should stress test different combinations of retirement income solutions across a range of different market conditions, enabling the client to understand the most suitable way to meet their personalised objectives and ho
Slide 16: Section 2: FOE: Cash flow modelling can leave you at risk of challenge
Section 2: FOE: Cash flow modelling can leave you at risk of challenge about your assumptions.
Slide 17: Cash flow modelling is like letting a child mark their own homework
‘Cash flow modelling is like letting a child mark their own homework!’ This is just for UK advisers – it’s not for use with clients
Slide 18: Plans are useless, but planning is indispensable
‘In preparing for battle I have always found that plans are useless, but planning is indispensable’ Dwight Eisenhower This is just for UK advisers – it’s not for use with clients
Slide 19: Cash flow modelling & DB Transfers
Cash flow modelling & DB Transfers Source: https://www.handbook.fca.org.uk/handbook/COBS/19/Annex4A.html This is just for UK advisers – it’s not for use with clients
Slide 20: DB FG 21/03 – APTA and cashflow modelling
DB FG 21/03 – APTA and cashflow modelling 5.19 You may want to use cashflow modelling to demonstrate to the client the extent to which they are able to meet their needs and objectives throughout retirement whether they transfer or remain in the scheme. A cashflow model can factor in the client’s oth
Slide 21: DB FG 21/03 – APTA and cashflow modelling
DB FG 21/03 – APTA and cashflow modelling Good Practice – A firm used cashflow modelling to show how income from the client’s different assets would start at different ages and meet their essential and lifestyle needs up to 100 years old. The firm included relevant charts in its suitability reports
Slide 22: Example FCA Retirement Income Advice Survey
Example FCA Retirement Income Advice Survey This is just for UK advisers – it’s not for use with clients
Slide 23: Choice of 'smoothed' multi asset funds
Choice of ‘smoothed’ multi asset funds Helping investors ‘stay the path’ 7.0% 7.7% PruFund PruFund ▪ Realistic return expectations are key to retirement planning Cautious Growth ▪ The Expected Growth Rate 6.5% 6.9% 7.4% 7.7% 8.0% (EGR) is an estimate of the Risk Risk Risk Risk Risk expected investme
Slide 24: Section 3: Cashflow modellers are the friend of the adviser
Section 3: Cashflow modellers are the friend of the adviser….
Slide 25: What is the consumer duty?
What is the consumer duty? • A firm must act to deliver good outcomes for retail Consumer Principle customers • Principle 12 Firms must • Act in good faith toward retail customers Cross-cutting rules • Avoid foreseeable harm to retail customers • Enable and support retail customers to pursue their f
Slide 26: Consumer duty and cashflow modelling
Consumer duty and cashflow modelling (1) Cashflow can help show an understanding of your client and how your service helps meet their needs and objectives. (2) Quantifying value by showing how your advice can reduce tax. Pre and post meeting survey questions for valuable MI. (3) Cashflow provides th
Slide 27: Consumer duty and cashflow modelling
Consumer duty and cashflow modelling Pre and post meeting survey questions for valuable MI. This is just for UK advisers – it’s not for use with clients
Slide 28: Demo of FinCalc: Best practice & case studies
Demo of FinCalc Best practice & case studies on the system Including the 6 individual learning th outcome See replay recoding This is just for UK advisers – it’s not for use with clients
Slide 29: What is the next evolution in cashflow modelling?
What is the next evolution in cashflow modelling? This is just for UK advisers – it’s not for use with clients
Slide 30: The next evolution in cashflow modelling?
The next evolution in cashflow modelling? • Eco-system incl. Back-Office, Client Portal and Financial Planning Tools. Huge time-savings for advisers & BACK-OFFICE consistent data! SYSTEM • Client Portal => Client reviews, fact finds, document uploads, DocuSign, secure messaging. • Advisers can revie
Slide 31: Evidence based income strategy
Evidence based income strategy Adapted for a cashflow modelling process Client aims and objectives Digital fact Cash flow modelling with Cash flow modelling linked find and / or process for C4L / stress testing. with the investment expenditure Establishing the most tax process, relevant analysis eff
Slide 32: The impact of withdrawals
The impact of withdrawals Total withdrawals - £23,750 140000 £135,777 130000 120000 110000 £106,406 100000 £98,930 90000 £87,731 80000 01/03/2015 01/05/2015 01/07/2015 01/09/2015 01/11/2015 01/01/2016 01/03/2016 01/05/2016 01/07/2016 01/09/2016 01/11/2016 01/01/2017 01/03/2017 01/05/2017 01/07/2017
Slide 33: Due diligence
Due diligence https://www.mandg.com/pru/adviser/en-gb/insights-events/news/customer-duty#undefined This is just for UK advisers – it’s not for use with clients
Slide 34: Detailed support
Detailed support Source: https://www.pruadviser.co.uk/pdf/FRPM10431.pdf Source: https://www.pruadviser.co.uk/pdf/FRPF282601.pdf This is just for UK advisers – it’s not for use with clients
Slide 35: PFS Good practice guide
PFS Good practice guide Source: https://www.thepfs.org/media/10129449/good-practice-guide-advised-pension-income-drawdown-c1.pdf 35 This is just for UK advisers – it’s not for use with clients
Slide 36: Further information / contact us
Further information / contact us sales@fincalc.co.uk 01206 803210 linkedin.com/company/fincalcuk/
Slide 37: Our learning objectives for the session
Our learning objectives for the session 1 2 3 4 Demonstrate how Explain how Cashflow Cashflow modelling Demonstrate how Demonstrate your modelling can can be used in the Cashflow modelling capacity for loss assist advisers with advice process to can help clients process by effective their Consumer h
Slide 38: M&G Wealth is a trademarked brand of the M&G plc group
M&G Wealth is a trademarked brand of the M&G plc group, which includes 3 business divisions as follows: M&G Wealth Advice, provided by M&G Wealth Advice Limited, registered number: 08022795. Model Portfolio Services, provided by M&G Wealth Investments LLP, registered number: 0C305442. M&G Wealth Pla