The Money and Mind Report 2025, which surveyed 1,000 UK adults to understand attitudes to finances and wellbeing, shows that financial concerns profoundly impact both mental and physical health. Those aged 35-54 were more concerned about their finances than older age groups, highlighting the challenges of balancing multiple financial responsibilities while potentially facing career uncertainties

For those with financial concerns, 79% reported that this affects their mental wellbeing, underscoring the importance of proactive financial management. 29% of those concerned indicated that financial worries affect them both mentally and physically, manifesting in symptoms such as sleep disturbances, headaches and other stress-related physical ailments.

41% of those surveyed said they have made sorting out their finances a top priority, a 5% increase from 2023. However, while 55% of respondents said they were likely to create a financial plan, only 8% currently had one in place. Loved ones were found to be the most common source of support for those with financial concerns, while just 6% consult a professional financial adviser, highlighting a gap in professional financial guidance that needs to be addressed. The report found that 22% believed financial planning would be too expensive, underscoring the importance of affordable, accessible financial advice to help people manage their money better and reduce any negative impacts on wellbeing.

Key findings:
• 62% of respondents concerned or very concerned about finances
• 79% of those with financial concerns report that their financial situation impacts their mental wellbeing
• 70% are worried about the impact of the cost-of-living crisis
• 55% are likely to make a financial plan but only 8% currently have one in place
• 33% confide in a loved one, while only 6% discuss their money worries with a professional financial adviser
• 22% think financial planning would be too expensive
• 41% have made sorting out their finances a top priority, a 5% increase from 2023

Ben Waterhouse, chief client officer at Schroders Personal Wealth, said: “This report highlights the importance of financial wellbeing and the critical role that financial planning can play in supporting individuals. By understanding key concerns and priorities, we can develop strategies and solutions that not only help alleviate financial stress but also aim to enhance overall wellbeing. We hope that the insights from this report will inspire meaningful conversations and actions towards a more financially stable and mentally healthy future.”

Alice Harmer, personal wealth adviser at Schroders Person Wealth, added: “Achieving financial goals requires more than just good intentions; it needs a well thought-out plan and the right guidance. As financial advisers, our role is to help clients navigate the complexities of financial planning, from budgeting and saving to investing and retirement planning.

“We provide the expertise and insights needed to make informed decisions that align with their long-term objectives. By working with a financial adviser, individuals can gain clarity on their financial situation, set realistic goals, and develop a plan that aims to achieve them. This personalised approach ensures that individuals are not only prepared for the future but also able to enjoy peace of mind knowing they are on the right path.”

London-based Whitley was founded by conservationist Edward Whitley OBE following his decision to establish the Whitley Fund for Nature and to manage the sales proceeds of his shareholding in major brewing business, Greenall Whitley in 1990.

He set up Whitley 12 years later (2002) to extend the same portfolio management services to a wider client base of business owners and charities. Today the firm manages assets of circa £1.5bn on behalf of ultra-high-net worth entrepreneurs and charity clients (as at 30 September 2024).

Wealth Management is a strategic area of growth for Schroders plc which has seen particularly strong growth since the acquisition of Cazenove Capital in 2013.

Whitley’s clients would be able to benefit from the broader range of services offered at Cazenove Capital, including financial planning, banking, philanthropy and access to private and impact investments, the statement further said.

Mary-Anne Daly, Schroder’s Wealth Management chief executive said: “We are delighted that Edward Whitley has chosen Cazenove Capital as the future home for his business and clients and are looking forward to welcoming him and his team to 1 London Wall Place.
We have a deep understanding of the requirements of multi-generational families, business owners and charities. Our shared culture of service excellence, the depth of Schroder’s investment expertise and our continuous investment in people and technology will sustain our presence by the side of these clients for generations to come.”

Edward Whitley, founder and CEO of Whitley Asset Management,said: “After building up Whitley Asset Management for over 20 years, looking ahead to the next 20 years I believe that Cazenove Capital is the ideal home both for our clients and for our team. I feel very proud to have built a business which Cazenove Capital wishes to take on.

“As one of the leading and in our view the most respected wealth manager in the UK, Cazenove Capital was really the only choice for us. Combining excellent client service with impressive investment performance, Cazenove Capital shares the same ethos as us – and they also benefit from the depth and global breadth of Schroders.

“Our investment management approach is long-term and inter-generational, and I believe that our clients and our team will feel very at home within Cazenove Capital and that they and their subsequent generations will enjoy the long-term benefits that Cazenove Capital can provide.”

Edward Whitley and his portfolio management team will join the Cazenove Capital and Schroders HQ at 1 London Wall Place, London EC2Y.

Future Growth Capital (FGC) will, subject to all regulatory approvals, support the objectives of the UK’s Mansion House Compact, unlocking investment opportunities in private markets for millions of new pension savers to benefit from the diversification and investment return opportunities that unlisted assets can offer.

FGC aims to deploy an initial £1bn and £10-20bn over the next 10 years into UK and global private markets. Phoenix Group intends to invest 5% of its relevant savings products on behalf of its policyholders, in line with its Mansion House Compact commitment. This will provide scale at inception, with ongoing fundraising led by both Schroders and Phoenix Group.

The new investment manager will design and manage UK and Global multi-private asset solutions for UK insurance and pension clients to open access to a broader range of innovative companies and investment opportunities for millions of UK pension clients. Initially it will leverage Schroders’ pioneering Long-Term Asset Fund (LTAF) investment platform, providing investment advice to the fourth and fifth LTAFs planned for launch by Schroders’ dedicated private markets business, Schroders Capital, in the UK.

A key focus of FGC will be investing on behalf of pension savers to grow the UK’s companies of the future. FGC will provide long-term financing for innovative, growing businesses, helping to create jobs and boost the UK economy. As a major investor in the UK’s private markets, it will help to develop the UK private market ecosystem and to promote the UK as an attractive private market investment destination.

Chancellor of exchequer Rachel Reeves said: “I welcome today’s multi-billion-pound announcement from Schroders and Phoenix Group, which will ensure that more of people’s pension savings are invested into the UK’s highest growing companies. We want pension fund money to work harder for people and the economy. That’s why our pensions review will explore how we can unlock even more investment in the UK economy while boosting pension pots.”

Peter Harrison, group chief executive officer, Schroders, said: “The UK’s private companies are an untapped universe of investment opportunity. By stimulating investment into our private markets, our partnership will address the multiple challenges of the looming retirement crisis and boosting UK growth. By connecting long-term savers with our country’s most inventive companies, Future Growth Capital will help more people to fund a secure and comfortable retirement, whilst supporting businesses to grow and thrive right here in the UK. In doing so, we’ll be making the UK an even more attractive place to live, work, retire and invest.”

Andy Briggs, group chief executive officer, Phoenix Group, said: “For too long, pension savers in the UK have received lower returns than their counterparts in the P7 such as Australia and Canada, partly because the UK allocates much less capital to private market assets than other developed countries. By forming FGC with Schroders, it will help us to deliver our goal of giving UK long-term savers a way to invest in a more diversified portfolio with the potential for higher returns, from a broader range of assets. This facility will also play a significant role in the future design of our flagship defaults. FGC will be a long-term, patient capital investment manager, constructed to ensure that customer protection remains at its core by taking a blended approach to asset allocation.”

Both vehicles are managed by Roland Arnold, who seeks to invest in high quality, growing businesses.

Square Mile analysts said they consider Arnold to be a “pragmatic” investor who has proven to be adept in adjusting the risk profile of the strategy underlying both the fund and the trust at appropriate times during the market cycle.

The £633.1m BlackRock Smaller Companies Trust currently trades at an 11.7% discount to net asset value (NAV), according to the AIC.

Analysts at Square Mile conducted 66 interviews with investment professionals from 37 asset management groups during February.

Elsewhere, the Janus Henderson Global Equity Income fund has lost its A rating after a period of “challenged” performance.

According to FE Fundinfo, the strategy has returned 43.5% over the last five years compared to the IA Global Equity Income average 52.3%.

The analysts noted that the fund has always taken an approach that is highly defensive, non-cyclical and with a focus on income.

“However, its total return profile has not met [analyst] expectations and [Square Mile] no longer have sufficient conviction in the strategy to justify its continued inclusion in the Academy of Funds,” they said.

Matthews Asia Pacific Tiger fund has also been stripped of its A rating, having previously had its rating suspended in December following the departure of manager Sharat Shroff.

Shroff was replaced by Inbok Song as lead manager, who works alongside the firm’s CIO Sean Taylor.

The Square Mile analysts said: “Ms Song and Mr Taylor are in the process of re-invigorating the strategy, which includes adjusting the portfolio construction process. Although Square Mile’s analysts believe this to be a sensible course of action, as yet it is unproven.”

Schroder US Equity Income Maximiser and Schroder Income Maximiser funds have both retained their A ratings, despite the recent departure of manager Mike Hodgson.

Co-manager Scott Thomson was appointed as head of the team. Square Mile said its analysts have a high regard for Thomson and confirmed the two funds’ ratings would remain unchanged.

Similarly, UBAM Positive Impact Equity fund has retained its ‘Responsible A’ rating despite senior portfolio manager Rupert Welchman’s decision to exit the firm in April.

Despite his departure, the Square Mile analysts believe the team is well resourced and they have a high regard for the strong team-based process underpinning the strategy.

This article was written for our sister title Portfolio Adviser

Launched in 2011, the fund is managed by Kevin Murphy and Andrew Evans and invests in a diversified portfolio of UK companies.

Joseph Hill, HL senior investment analyst, said that the fund could diversify an income-focused portfolio or offer value exposure to a more general portfolio.

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“We think Murphy and Evans have the experience and support to deliver good long-term returns to patient investors, although there are no guarantees,” he said. “We also have a positive view of the collegiate approach, capability and experience of the 12-strong value team the managers form a part of.”

Murphy has been at Schroders since 2000, joining as an equity analyst before managing money since 2006. He has run the Schroder Income fund since launch.

Meanwhile, Evans joined the firm in 2015 as a member of the global value team. He became a named manager on the strategy in November 2022.

According to FE Fundinfo, the strategy has returned 33.5% over three years against the IA UK Equity Income sector average of 20.2%.

This article was written for our sister title Portfolio Adviser