1875 Spring 2026

1875

A PUBLICATION FROM REDMAYNE BENTLEY

SPRING 2026

INVESTING IN A CHANGING WORLD

IN THIS ISSUE IRAN WAR AND MARKETS: WHY LONG-TERM INVESTING MATTERS WHAT THE APRIL 2027 PENSION CHANGES MEAN FOR YOU CLARKSONS: SHIPPING IN THE SPOTLIGHT

150 YEARS OF REDMAYNE BENTLEY - A Proud Financial Heritage

CONTENTS WHY LONG-TERM INVESTING MATTERS

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Long-term investing, especially in volatile times, can often be beneficial.

Phil Armitage, Partner and Director of Stockbroking at Redmayne Bentley, explains more.

TOPIC OF THE MONTH April 2027 Pension Changes

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Jude Cann DipPFS of our Financial Planning team discusses the upcoming changes to pensions and Inheritance Tax, and what they might mean for you.

STOCK FOCUS 6 Clarksons: Shipping in the Spotlight With the shipping industry making global headlines, we analyse Clarkson Plc, the largest UK-listed shipping services provider.

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RISK WARNING Investments and income arising from them can fall as well as rise in value.

Past performance and forecasts are not reliable indicators of future results and performance. There is an extra risk of losing money when shares are bought in some smaller companies. Redmayne Bentley has taken steps to ensure the accuracy of the information provided.

Please note that this communication is for information only and does not constitute a recommendation to buy or sell the shares of the investments mentioned.

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150 YEARS OF REDMAYNE BENTLEY - A Proud Financial Heritage

IRAN WAR AND MARKETS: WHY LONG-TERM INVESTING MATTERS PHIL ARMITAGE | PARTNER Phil has over 30 years’ experience at Redmayne Bentley. His career as a stockbroker has given him first hand experience of a wide range of market conditions, from the dot com boom of the late 1990s, through the global financial crisis of 2008, to the COVID-19 pandemic. Now, as a Partner of Redmayne Bentley, Phil oversees our stockbroking service.

For participants in financial markets, periods of volatility are a near certainty and need to be managed.

Volatility is a cost of entry when investing. Even for calendar years of positive returns, financial markets retain the ability to experience meaningful rises and falls.

Thinking back to last year, the MSCI World Index, which tracks the largest globally listed companies, experienced a 17% decline, but finished the year with a positive 17% return.

Periods of uncertainty can be triggered by a wide range of events, some more memorable than others, from the Asian financial crisis of the late 90s, Global Financial Crisis of the 2000s, and the Covid-19 pandemic. As for the most recent period of volatility, the causes and initial implications were covered in the March edition of our Market Insight publication. This edition is available to read on the Redmayne Bentley website: redmayne.co.uk/1875-Spring-2026

can help you stay fully invested, with the opportunity to capture the returns generated by assets within a portfolio.

Data indicates that an individual who remained invested in the FTSE All Share Index throughout the fifteen year period to the end of February 2026 would have experienced an 8.11% annualised return, reducing to 5.07% if the ten best days in this period were missed.

Although the findings have limits, as markets rarely move in neat patterns and good and bad days can cluster together.

It does offer a reminder that trying to time the market is rarely successful, and that patience and planning often serve investors better.

NAVIGATING VOLATILITY When markets are unpredictable and prices swing sharply during a day, there can be a temptation to act. Some investors may opt to sell, hoping to limit further losses. While others may be drawn to areas expected to perform positively, such as energy or consumer staple goods, which have traditionally performed better during inflationary periods.

CONSIDER YOUR OPTIONS CAREFULLY Selling can sometimes make sense, particularly if the reasons for holding an investment no longer seem appropriate.

However, it’s important to consider how markets can fall very quickly when many investors sell at the same time. Acting in the heat of the moment risks locking in losses, leaving you with uninvested cash on the sidelines while markets recover.

Chasing momentum carries risks too. During recent tensions involving Iran, oil majors such as Shell attracted attention and, for some, delivered short-term gains. But when a ceasefire was announced on 8th April, prices fell sharply in a single day (-4.68%). This shows how quickly fortunes can change.

Inactivity, or sitting on your hands, could also be an option.

Taking a step back, revisiting your long-term plan, and sticking with investments chosen through careful research

HERE TO HELP How individuals navigate periods of volatility and uncertainty is varied. Revisiting a strategy or longer-term plan is one potential options, while experience of such scenarios enables a more seamless navigation. Redmayne Bentley offers considerable depth and breadth across its network, from stockbrokers placing orders in fast moving markets, which can sometimes involve complex trades, through to investment managers navigating portfolios through volatile times, and financial planners supporting you with longer term financial goals.

If you would like to discuss your investments, financial goals or plans, or any of the investment themes within this edition of 1875, please contact your usual Redmayne Bentley office or executive.

Please note that this communication is for information only and does not constitute a recommendation to buy or sell the shares of the investments mentioned. Investments and income arising from them can fall as well as rise in value. Past performance and forecasts are not reliable indicators of future results and performance. The information and views were correct at time of publishing but may have changed at point of reading.

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150 YEARS OF REDMAYNE BENTLEY - A Proud Financial Heritage

WHAT THE APRIL 2027 PENSION CHANGES MEAN FOR YOU JUDE CANN | FINANCIAL PLANNER Jude is an accomplished Financial Planner with over 25 years of experience in the industry. He is dedicated to helping clients navigate complex financial landscapes, ensuring their long-term success and security. He thoroughly enjoys helping clients with the challenges they face in fulfilling their hopes, dreams and aspirations. Jude is a keen football follower, an FA accredited football coach as well as a dedicated family man.

As things stand today, most personal and workplace pensions sit outside your estate for Inheritance Tax (IHT) purposes. This has resulted in pensions becoming one of the most tax efficient ways to pass wealth between generations. For many people, this had helped them to plan the order of spending their wealth such as using cash, individual savings accounts (ISAs) or other investments first, and retaining their pensions until last.

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Fast forward to 6th April 2027, the changes will mean that any unused pension funds (any monies that have not been spent and remaining in your pension) will generally be included within the value of your estate for IHT.

WHY ARE THE PENSIONS RULES CHANGING? The government is concerned that pensions are increasingly being preserved as legacy assets rather than being used to fund retirement. This is due to tax relief on contributions and

150 YEARS OF REDMAYNE BENTLEY - A Proud Financial Heritage

tax-free growth. When people don’t draw from their pensions, tax revenues fall. Bringing unused pension funds into the IHT system is intended to close this gap.

HOW DOES THIS AFFECT ME AND MY BENEFICIARIES? Currently, if the value of your estate is below the £325,000 threshold, there will normally be no IHT to pay. The standard IHT rate of 40% applies to the part of your estate over that threshold.

Therefore, unused pension funds could be taxed at 40% on death if your estate exceeds available IHT allowances. For example, if your estate is worth £500,000, and the threshold is £325,000, IHT will be applied to 40% of the £175,000 over the threshold.

Funds transferred to a spouse or civil partner remain exempt, meaning this change will mainly affect families on the second partner’s passing away.

It represents a meaningful shift, but understanding it now gives you time to prepare confidently. Redmayne Bentley could help you review your position and plan ahead.

WHAT SHOULD YOU CONSIDER NOW? 1. Revisit your expression of wish With pension funds forming part of your taxable estate from 2027, keeping your expression of wish up-to-date is more important than ever. Clear, current nominations help your beneficiaries and executors avoid uncertainty or delays.

2. Review your retirement income strategy Many retirement plans have been built around preserving pensions for as long as possible. These new rules may change that balance. In some cases, drawing from pensions sooner and preserving more ISA or taxable investment assets for later life may create better outcomes, for both your retirement income and any plans you may have for your long-term legacy.

3. Re examine your legacy plans If you’ve viewed your pension as a legacy pot, this change may prompt you to reconsider whether making withdrawals or lifetime gifts is more effective. Conversations about inheritance, financial preparedness or how younger generations may manage funds can be sensitive. Starting early, while everyone is well and plans are clear, often leads to better outcomes. A financial planner can help you ensure everything is in order.

WHAT ACTIONS SHOULD YOU TAKE? There’s no need for reactive or rushed decisions. The most important step is to review your retirement plan in light of the upcoming rules.

Redmayne Bentley’s Financial Planners can help you assess your overall wealth including pensions, ISAs, investments, property, and life assurance – and how this change may affect your future. We can work with you to model your

potential IHT exposure, plan your retirement income, and understand the most tax efficient way to pass on your wealth.

Drawing from the right place at the right time is increasingly important. We offer an initial, free‑of‑charge conversation, so we can learn more about your circumstances in a noobligation, friendly discussion.

Retirement planning has never only been about numbers. It’s about your lifestyle, your family and the future you want to shape. With thoughtful preparation and the right guidance, you can navigate this change with confidence and continue planning for what matters most.

COULD THE GOVERNMENT CHANGE ITS MIND? A reversal appears extremely unlikely. While the industry has raised questions about how the new rules will be administered, there’s currently no indication that the change will not proceed in April 2027.

Our Financial Planners are here to help. You can get in touch via your usual Redmayne Bentley office or executive, or using the details below. We’re here to help.

KEY

TAKEAWAYS • From 6th April 2027, any unused

funds in your pension will be included within the value of your estate and, therefore, IHT calculations.

• Your pension could be charged up

to 40% IHT. • IHT is usually paid by the estate,

not the beneficiary.

If you would like to speak to a Financial Planner regarding your finances, you can call 0344 259 0002 or email financialplanning@redmayne.co.uk.

Please note that this article is for information only and does not constitute a recommendation or financial advice. The value of investments and any income derived from them may go down as well as up and you could get back less than you invested. Please note that tax treatment depends on the specific circumstances of each individual and may be subject to change in the future. The Financial Conduct Authority does not regulate tax or estate planning.

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150 YEARS OF REDMAYNE BENTLEY - A Proud Financial Heritage

STOCK FOCUS CLARKSONS: SHIPPING IN THE SPOTLIGHT THOMAS HYDE | JUNIOR INVESTMENT RESEARCH ANALYST With the shipping industry making global headlines, we analyse Clarkson Plc, the largest UK-listed shipping services provider.

Shipping is the backbone of international trade, with the industry accounting for 80% of goods traded worldwide, according to the United Nations (UN). The largest UK-listed provider of shipping services is Clarkson Plc, trading as Clarksons, which traces its roots to 19th century London. Given recent geopolitical tensions, the company’s dominant position as a leading shipbroker warrants closer attention.

THE VALUE OF GLOBAL SHIPPING Clarksons began as a shipbroker, acting as a middleman in maritime transactions such as the chartering of vessels and sale and purchase of ships, and the facilitation of the freight derivatives trade. The company earns a commission on each deal it intermediates, creating a business model that is directly tied to the volume and value of global shipping activity.

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According to Lloyd’s List, the authoritative source in global shipping, Clarksons is ranked as the world’s largest shipbroker, with approximately 1,300 employees in its Broking division.

This scale is significant. Shipbroking is a fragmented industry with high barriers to entry, as success is relationship-led and requires sector-specific expertise. Unlike in equities or commodities, there are no centralised exchanges for chartering a vessel. Freight benchmarks do exist; the Baltic Exchange publishes daily indices to gauge global demand for shipping.

However, individual charters require negotiations involving dozens of factors such as vessel specifications, route, and timing. This bespoke nature of contracts ensures a broker’s role in any large deal. Clarksons generates 80% of total business revenue from broking dry bulk (unpackaged cargo), oil tankers, specialised gas carriers and container ships from 64 offices around the globe.

150 YEARS OF REDMAYNE BENTLEY - A Proud Financial Heritage

DIVERSIFICATION PROVIDES STRENGTH Beyond shipbroking, Clarksons has diversified into three other divisions. The 2015 acquisition of RS Platou ASA, a Norwegian investment bank, helped broaden the company’s Financial division which specialises in advisory services for the shipping and offshore sectors. Marine and Energy Port Services offers logistic services including customs clearance, offshore helicopter operations and terminal handling for the marine industry. Finally, Research produces proprietary market intelligence and data analytics used by the shipping industry and financial services companies. Andi Case, Clarksons’ CEO, described the Research division as an attempt to become the ‘Bloomberg of Global Shipbroking’ by providing a data analytics platform that is so deeply embedded in client workflows it becomes indispensable. This diversified business model can help offset weakness in the shipbroking market.

In Clarksons’ 2025 financial year, geopolitical uncertainty, particularly around US trade policy, slowed deal activity in the first half of the year which meaningfully picked back up in the second half. As a result, shipbroking operating profit fell from £122.6m to £93.9m. At the same time, Clarksons’ Financial

Cape of Good Hope rather than the Suez Canal. This has led to a c.65% drop in Red Sea traffic, according to Clarksons.

These longer voyages require more ships, tightening supply and driving up freight rates which, in turn, increases the commissions earned on charters.

THE IMPACT OF THE IRAN WAR The ongoing Iranian conflict has added further uncertainty to the region’s shipping lanes. At the time of writing, the price to charter a Very Large Crude Carrier (VLCC) from the Persian Gulf to Singapore cost 3.75x the standard reference rate, according to rival shipbroker Fearnleys. Higher freight costs typically translate to higher commissions for shipbrokers like Clarksons.

At the time of writing, Clarksons’ shares trade at their all-time high, having gained nearly 25% year-to-date. With a trailing price-to-earnings (P/E) ratio of 22x, the shares trade at a meaningful premium to its parent index the FTSE 250 (14.1x), suggesting the market has priced in continued disruption to major trade routes. The financial year 2025 dividend was announced at 112p per share, the 23rd consecutive year of dividend increases, signalling management’s confidence in the company’s cash generation. Despite this, it is likely the market has already priced the good news in. A normalisation of freight rates to pre-conflict levels could remove the tailwinds that have supported the recent re-rating.

NOT ALL SMOOTH SAILING

division delivered a record year, as operating profit increased from £5.2m to £12.9m, driven by an active capital markets environment. Research also grew its operating profit from £9.5m to £10.6m, as it benefitted from the recurring revenue of its subscription model.

HOW DOES GEOPOLITICS AFFECT SHIPPING? Geopolitics cuts both ways for Clarksons, as the uncertainty caused by crisis and conflict slows decision making but also creates opportunities. As demonstrated above, shifting tariff regimes, as well as sanctions (e.g., Russia and Venezuela) can cause shipowners and those chartering their ships to pause during times of uncertainty, reducing broking volumes. On the other hand, disruption can reshape trade flows in ways that are beneficial for Clarksons’ Shipbroking division. Attacks in the Red Sea have forced carriers to reroute shipping via the

Beyond geopolitics, Clarksons remains exposed to many of the risks of the global economy. A global recession reduces demand for goods, putting downward pressure on freight rates and transaction volumes. The commissions earned by shipbroking are directly linked to freight rates, impacting the earnings of the division which produces most of the company’s revenue.

Shipping markets are cyclical, and Clarksons may struggle to weather a prolonged freight downturn. The Baltic Dry Index fell over 90% from May to December 2008, illustrating the severity of freight market downturns when global demand is hit. Another consideration is the company’s currency exposure.

Clarksons’ revenue is largely dollar-denominated whereas its costs are booked in sterling. This poses a risk that currency fluctuations distort profits. Clarksons recorded the average GBP/USD rate rising from US$1.28 the prior year to US$1.32 in financial year 2025. This can result in headline figures not always reflecting underlying commercial performance.

Overall, Clarksons’ dominant market position and diversified business model provide an income stream across shipping cycles but, with shares trading at all-time highs and a premium valuation, one could argue geopolitical tailwinds appear already discounted.

Please note that this communication is for information only and does not constitute a recommendation to buy or sell the shares of the investments mentioned. Investments and income arising from them can fall as well as rise in value. Past performance and forecasts are not reliable indicators of future results and performance. The information and views were correct at time of publishing but may have changed at point of reading.

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