Bristol Life - Issue 230 by MediaClash

BUSINESS INSIDER

FINANCE

MONEY TALKS Paul Cowen is a Regional Manager at Hargreaves Lansdown, a firm that says the secret of its success is the ability to listen to what their clients want. But now it’s his turn to talk…

argreaves Lansdown is a local business – billed as the UK’s No.1 investment supermarket – which has grown from humble beginnings to become a member of the FTSE 100, currently looking after £77 billion of client assets. Tell us a bit about your role I’m proud to run a team of financial advisers for one of the industry’s leading financial firms. Our aim is to help ensure our clients make the most of their savings and investments. We want to help them save time, tax and money, be it through advice or giving the right information to help investors with their decisions. What are the main issues affecting the financial sector at the moment? The pension freedoms have given investors flexibility on how they can draw their pensions. But with more choice comes more potential pitfalls, which we help our clients negotiate. Professional advice and pension consolidation help clients to get the most from their plans. Many people with final-salary pensions are currently being offered large transfer values from their employers. When it comes to complex pensions like this, high-quality advice is vital. Any decisions made can have a significant impact on a client’s financial future, the quality of their retirement and beyond, as well as their family. How do you see Brexit affecting the UK’s economy in the next five years? While we have never exited the EU before, it is fair to say that we have dealt with large economic and political events in the past. In the last generation, the UK has left the ERM (European Exchange Rate Mechanism), endured the tech bubble and been engulfed by a global financial crisis. When it comes to investing, there’s a common adage that ’markets hate uncertainty’. While Brexit already has caused, and will continue to cause

Paul Cowen had everyone’s eyes and ears throughout

uncertainty, it is important to remember that between political leadership and the actions of companies, a conclusion is always found and capitalism survives. People will continue to go to the supermarket, manufacturers will continue to sell their goods in the UK and, if the currency remains weak, tourism and other British services will become even more attractive. Over the long term, companies are resilient and will increase their earnings – it’s why they are in business and how they have been able to come through previous crises. We simply see no reason for the economy’s wheels to fall off. In the short term it is hard

WE SIMPLY SEE NO REASON FOR THE ECONOMY’S WHEELS TO FALL OFF to predict precisely what will happen and the uncertainty is likely to be palpable. However, if you agree that Brexit is another problem to be solved, but one where capitalism survives, then it’s reasonable to conclude that the economy will keep progressing. And how do you view the local economy in Bristol? Like most people living in Bristol I am immensely proud of the city and find it thriving and vibrant. There is always something happening here – the energy is great and I think that helps and stimulates local businesses. Bristol is such a great place to live and work and there are still plenty of opportunities, which bodes well for the future growth of our local economy.

How long have you worked for HL and have you always been based in Bristol? I started stuffing envelopes for Hargreaves Lansdown 17 years ago and have worked here ever since. I’m Bristol born and bred and being part of a company that’s grown from a spare bedroom in Clifton to an industry-leading FTSE 100 company is so good, I’ve wanted to stay part of this success. India is the world’s fastest growing economy. Why is this? A rapidly growing labour force is key to India’s growth. While many other markets will see their labour forces shrink over the coming years, India’s is set to grow exponentially. About 65% of the country’s population is of working age, which makes it one of the youngest in the world. A large working-age population is an advantage for both the manufacturing and services sectors in India. Not only do businesses have access to people who are young, physically fit and increasingly welleducated, it means fewer cost pressures as firms can choose from a large pool of available workers. A young, growing workforce is also advantageous for consumption. Consumer spending in India has been rising quickly on the back of rising incomes. By 2040, it is predicted that nine out of ten Indians will belong to the ‘global middle class’. With 440 million millennials, and 7 million graduates every year, India’s consumer story looks set to be driven by a young, tech-savvy population. This has the potential to endure, continuing to help economic expansion for many years ahead.