According to the Financial Conduct Authority, over 40% of UK adults have savings of more than £10,000. This is reassuring but it seems a great deal of it is not invested.

Indeed, Barclays Bank estimates that 13 million UK adults hold £430bn in cash deposits.

Cash can be a good place to park savings for the short term, as the returns are not subject to the volatility experienced by investment markets. However, extending the time savings are kept in cash and not investing in asset classes like equities and bonds means potentially missing out on generating real returns to enable spending power to exceed the rate of inflation over the long term.

The gap between cash and investing is exacerbated at the moment by the fact interest rates have started falling, and we believe stock markets in the UK and internationally are offering attractive valuations.

There is hope the Budget on 30 October will deliver the catalysts required for investors in UK-listed companies to realise their attractive valuation opportunities

This latter point may seem surprising given the fact the US S&P500 index reached yet another new all-time high at the end of September.

Yet it is important to remember the US stock market has been driven to current levels in large part by a handful of mega caps, including Nvidia and Apple, which have benefited from the fever-like excitement around AI.

The market environment is changing, however. Revenues that have been delivered by US mega and large caps are spreading beyond these stocks, not only in the US but also in international markets. This is at a time when cheaper valuations are available outside large caps.

Our optimism about the outlook and valuations is demonstrated by the fact our team currently has a tactical score of four out of a maximum of five for equity markets in general. But not all equity markets are equal, and some offer greater value than others.

For the last time we saw this concentration in the S&P500, you have to go back to the Great Depression

The table below shows that, on a price to earnings (PE) and price to book (PB) basis, the UK offers the most value, with ratios of 12.2 and 1.9 respectively.

Expectations were raised when the Labour government won a large electoral majority in the summer, with a commitment to economic growth. There is hope the Budget on 30 October will deliver the catalysts required for investors in UK-listed companies to realise their attractive valuation opportunities.

Valuations in global equity markets

Source: Bloomberg/Liontrust, 02 October 2024; *External (hard currency) debt

Over the last two to three years, China’s slowing economic growth and trade tensions with the US have weighed on emerging markets (EMs).

We believe there are several reasons why EMs may now be more attractive. China’s central bank recently announced a new wave of monetary stimulus and EMs could benefit from the relative appreciation of their own currencies versus a potentially weakening dollar following the US Federal Reserve’s recent half-point interest-rate cut.

EM countries tend to borrow in US dollars, so a weaker greenback makes it easier for them and their companies to service their debts.

Barclays Bank estimates that 13 million UK adults hold £430bn in cash deposits

While US-China relations remain complicated, the reorganisation of strategic supply chains could create new opportunities for EMs other than China.

Two of the most expensive markets are the US and Japan after enjoying strong performance over the past couple of years despite the pullback in early August. However, while we are neutral on US equities from a tactical view, we do have a positive score of four out of five for US smaller companies and are bullish on the Japanese market, including smaller companies.

The fact Japan is in an inflationary environment for the first time in a couple of decades should encourage more consumption and, together with an improving corporate picture after years of underperformance, gives us a positive view of the outlook for the stock market.

If, as we believe, the concentration in equity markets of the mega caps in the US lessens over time and revenues and share prices broaden beyond them, then it is important to consider what the relative impact will be on active managers and passive vehicles within portfolios.

We believe there are several reasons why EMs may now be more attractive

If you take the US, which is the biggest passive market, the top 10 holdings in the S&P index represent around a third of the whole index. For the last time we saw this concentration in the S&P500, according to one of our US fund managers, you have to go back to the Great Depression.

The market conditions back then were entirely different to what we have today and we do not believe all the growth comes from just a few stocks.

While passive vehicles have certainly helped us over the years in terms of a broader universe of options to use within portfolios, there is a big opportunity now for active management, particularly in mid and small caps, and for savings to work harder for investors than keeping them in cash.

John Husselbee is head of the Liontrust multi-asset team

RESIDENTS being kicked out of an iconic tower block from Only Fools and Horses have revealed they won’t budge.

Harlech Tower, located on the South Acton Estate in Ealing, is set to be demolished to make way for modern new housing that will accommodate more people.

4

4

Advertisement

4

4

However, many residents living in the flats, which the council has labelled as “shabby,” have expressed that they do not wish to move out.

The tower featured as Peckham’s Nelson Mandela House in the popular TV show, Only Fools & Horses.

Phil Robinson lives on the 12th floor and has a special connection to Harlech Tower.

For decades, the 75-year-old served as the caretaker of the building, including when Only Fools and Horses was filmed there.

Phil has witnessed all sorts under his tenure from house fires to TV crews.

The former caretaker stated that even if he were offered a home in the new development, he would prefer to remain where he is.

“This is my home and I’m being forced out,” he said.

Phil moved into the tower with his late wife in 1975, and he cherishes the fond memories of their life together in the flat.

The 75-year-old also recalled the time Only Fools and Horses was filmed there with the crew having to do a whopping 32 takes for one scene.

Phil was diagnosed with stomach cancer and relies on his neighbours to bring him food as he can’t walk very well.

The Harlech Tower resident fears that the demolition of the block and the dispersal of his neighbours will strip him of the support network he’s relied on for years.

Phil isn’t alone in his desire to stay, as many other residents also prefer not to be displaced from their flats.

Terry, 77, and his wife Elizabeth, 82, have lived on the fourth floor with their daughter and son-in-law for the past 50 years, making them the longest-serving tenants in the block.

The couple told the LDRS that, despite their reluctance to move, they would consider a decent alternative offered by the council.

However, since they learnt of the plans to demolish Harlech Tower, Terry revealed that the council still hasn’t told them where they’ll end up.

The 77-year-old claimed that although the building was approaching the end of its life, there had been no problems until the council refurbished it 15 years ago.

He added: “Since then we have had loads of it… and when you make complaints to the council, they aren’t forthcoming.”

The demolition of Harlech Tower will clear the way for 3,500 new homes to be built on the estate as part of a project worth an estimated £850 million.

The removal of the block is set to start by 2027.

The council added that the move to demolish the ageing tower block will generate twice as many affordable homes.

The decision to replace the iconic tower with a new building stems from a series of faults identified within the block, according to the council.

In contrast to the residents expressing disappointment over the demolition plans for Harlech Tower, the council stated that most tenants in the building have welcomed the “regeneration program” and have chosen to request a new home in the redeveloped estate.

The council added: “Any residents who decide they do not wish to take up one of the newly build homes on the estate will be moved into a suitable home which meets their needs within the borough.”

The Sun has contacted Ealing Council for comment.

Over two thirds of advisers (68%) have said their firm is looking to grow by taking on new clients.

This figure is up from 50% last year.

Meanwhile, 40% plan to grow by hiring new staff, nearly double the number in 2023.

The research by NextWealth, based on a survey of 340 financial advice professionals, also reveals fewer firms are looking to sell up or exit the profession.

This is despite the “constant drumbeat of news” about the consolidation of financial advice firms.

Nearly half (46%) of respondents said that their number of active clients has increased – up from just over a quarter (29%) in 2023.

Only 11% said they have fewer clients this year compared to 17% in 2023.

Most clients come from referrals, either from existing clients or professional connections.

However, larger firms – those with six advisers or more – are increasingly attracting clients from digital and traditional marketing, the research shows.

It also highlights the positive sentiment people have over a career in financial advice.

Over three quarters of respondents said they are “confident” or “very confident” in the future of their role when it comes to long-term career prospects (79%) and continued satisfaction with their current role and activities (77%).

Overall, 71% of respondents said they are confident in their firm’s ability to attract new clients.

A SUPERMARKET’S own-brand cheddar has been crowned winner of a blind taste test, pipping Cathedral City to first place.

The group of shoppers, put together by consumer champion Which?, gave the top spot to a retailer’s Best Buy cheese.

2

2

Advertisement

The Tesco Finest 12-month Matured Cheddar was praised for its firm but smooth texture, saltiness and strength of flavour.

Tasters also said the 350g pack, on sale for £4, was crumbly and creamy.

Overall, shoppers gave the classic cheese a 78% rating factoring in flavour, aroma, appearance and texture.

A Cornwall cheddar came second in the blind taste test, which asked tasters to try a range of own-brand and branded packs.

The Davidstow Classic 12-month Matured Cheddar, on sale at Amazon, Morrisons, Ocado, Sainsbury’s and Tesco from £4.75 for a 350g pack, scored a decent 75% rating from shoppers.

They rated the cheese highly for its strength of flavour, crumbly texture, saltiness and creaminess.

M&S’ Cornish Cove Mature Cheddar got a 73% overall rating from shoppers and was classed as a good all-rounder.

Shoppers said the cheddar’s salt level was just right while its smooth firm texture also had tasters singing high praise.

The 350g pack came in at £4 and can be bought at M&S in-store or via Ocado.

Shoppers also tested out six other major cheddar cheeses, including from Aldi, Asda, Co-op and Sainsbury’s.

The Castello Tickler Mature Cheddar on sale at Ocado and Waitrose for £4.75 for a 300g pack, came in fourth place.

Shoppers said it tickled their taste buds but a few who tucked in wanted a slightly stronger hit of cheddar.

Major brand Cathedral City’s 350g pack of Our Mature Cheddar came in at £3.50 and while many loved the taste, shoppers also said it lacked a tangy punch.

Meanwhile, two cheeses from Aldi and Co-op came in second bottom and bottom place, with 68% and 66% overall scores.

Here is the full list of cheeses and how they fared in the taste test:

• Tesco Finest Mature English Cheddar Cheese – 78%
• Davidstow Classic Cheddar – 75%
• M&S Cornish Cove Mature Cheddar Cheese – 73%
• Castello Tickler Mature Cheddar Cheese – 71%
• Cathedral City Our Mature Cheddar – 70%
• Pilgrims Choice Mature Cheddar – 70%
• Sainsbury’s Barber’s Mature Cruncher Cheese, Taste the Difference – 69%
• Aldi Specially Selected West Country Mature Cheddar – 68%
• Co-op Irresistible Somerset Mature Cheddar Cheese – 66%

Natalie Hitchins, Which? head of home products and services, said: “Finding an affordable and tasty cheddar cheese is a must for many shoppers.

“Tesco emerged as the preferred choice in our taste tests for its firm and smooth texture and was awarded a Best Buy.

“This narrowly beat Davidstow’s Classic Cheddar, proving that own brand products can be just as delicious and more affordable than the big brands.”

It’s worth bearing in mind, the prices included in Which?’s taste test are correct as of October 7.

That means you might have to pay more or less when you come to buying one of the packs as supermarkets change prices on products regularly, sometimes daily.

It’s worth using a price comparison site like trolley.co.uk which compares prices on thousands of products to find the best deal.

The cheddar blind taste test is not the first Which? has carried out in recent months.

The consumer website, a non-profit which advocates for consumers, recently revealed the results of a blind taste test of Irish creams.

And shoppers gave the top spot to Sainsbury’s Taste the Difference tipple ahead of the branded Bailey’s.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories