It marked the second consecutive quarter of economic contraction, after UK gross domestic product fell 0.1% in Q3 2023.

The slight fall in December was mainly attributed to persistently high inflation, structural weaknesses in the labour market and low productivity growth, alongside adverse weather conditions.

Marcus Brookes, chief investment officer at Quilter Investors, said: “These factors affected the performance of the services and construction sectors, which are the main drivers of the UK economy. Retail sales also declined sharply in December, in the face of ongoing high inflation and interest rates as well as changing buying patterns.

See also: Pridham Report: ‘Bruising’ 2023 sees record outflows for UK fund industry

“Some of these challenges are temporary and have already started to ease. The inflation rate held steady at 4% yesterday when many were predicting an increase. Over the coming months, we expect inflation to fall, potentially easing the pressure on UK households, and supporting the recovery of the consumer-driven economy.

“The key indicator to watch is inflation in the services sector, which accounts for the bulk of the UK’s economic activity and employment and reflects the strength of wage growth and consumer demand, which are crucial for the UK’s recovery. As inflation steadies and then reduces, the Bank of England is more likely to cut interest rates to stimulate economic activity and investment.

“The UK economy faces challenges and uncertainties, but it also has many strengths and opportunities. It has a dynamic economy with a skilled and flexible workforce, and the UK is expected to overcome many of the current difficulties and emerge stronger and more resilient in the future.”

Jeremy Batstone-Carr, European strategist at Raymond James, noted the data is evident of deflated activity across all key sectors of the economy, from manufacturing to service and retail as well as construction activity, which was negatively impacted by poor weather.

See also: All I want for Easter is the findings of the FCA’s thematic review

“Nonetheless, while there is an impression of economic stagnation, brighter times surely lie ahead. As winter rolls away, the lagged impact of high inflation and interest rates will work its way through the economy and inflationary pressures will settle, allowing the Bank of England to lower the base rate come summertime,” he added.

Premier Miton CIO Neil Birrell was also upbeat, saying: “Given the modest nature of the contraction, we should not be overly concerned, but today’s figures are nonetheless below expectations.

“This number, on the back of better inflation data, may give rise to some concern over economic strength in the coming year. Most sectors of the economy were weak, but the optimists will point to the fact that there is plenty of scope to cut interest rates should the current trend in inflation and growth accelerate.”

This article was written for our sister title Portfolio Adviser

Love Ventures has hired Faye Williams to take on the newly created role of distribution director.

Williams will be responsible for oversight and day-to-day management of the firm’s business development and marketing.

Love Ventures works with financial advisers investing in Enterprise Investment Schemes (EIS), with a focus on fintech, future of work and consumer tech.

Before joining Love Ventures, Williams was at TIME Investments, where she was director of business development and responsible for a 20 strong sales team.

Raymond James Wealth Management

RJWM, the newly created business that comprises both Charles Stanley and Raymond James Investment Services (RJIS), has announced its first two senior appointments.

Sandy Kinney Pritchard has joined as an independent non-executive director and chair of the board of RJWM Limited, and Francesca Hampton as group chief financial officer..

Both will join the RJWM Limited board in February 2024 and will also serve on the respective boards of the underlying regulated entities.

Legal & General Investment Management

LGIM has hired Sam Kulahan as a senior member of its 13 person manager research group, responsible for manager research covering liquid and illiquid assets. He will sit within LGIM’s asset allocation team and work closely with LGIM’s solutions group.

His previous roles include working in Morningstar’s manager research team.

Kulahan’s research will support LGIM’s core model portfolios and tailored solutions for LGIM’s retail model portfolio service (MPS) partners, as well as institutional clients holding external managers in portfolios managed by LGIM.

Lombard Odier Group

Lombard Odier Group has hired Bettina Ducat as co-head of Lombard Odier Investment Managers (LOIM) from 5 March 2024.

She will be based in Geneva and will become a limited partner. Ducat will jointly lead LOIM, Lombard Odier’s asset management division, together with managing partner Jean-Pascal Porcherot.

Before joining Lombard Odier, Ducat was CEO of La Financière de l’Echiquier and deputy CEO in charge of asset management of the Primonial Group.

Dimensional Fund Advisors

Dimensional Fund Advisors has promoted global head of research Savina Rizova to co-chief investment officer, alongside co-CEO Gerard O’Reilly, effective 1 February.

As co-CIOs, O’Reilly and Rizova will lead a team of more than 300 investment professionals across six countries.

According to the FCA Register, three requirements were imposed on 16 August 2023.

The first being that the firm must not without prior written consent of the FCA, onboard any new branches under the firm’s banner.

Secondly, Raymond James, without the FCA’s prior written consent, must not employ or contract any new investment managers for the firm or any of the firm’s existing branches.

The firm also must not register any new trading names without prior written consent from the FCA.

A spokesperson for Raymond James Investment Services, said: “As part of a recent thematic review and in consultation with the FCA, Raymond James Investment Services have agreed to a voluntary application for imposition of requirements (VREQ) and will not, without prior written consent from the FCA, employ or contract any new investment managers or onboard any new branches.”

This comes after Raymond James opened offices in Newcastle and Fulham in 2023.

The new hub, named ‘Raymond James, Monument’, will provide investment services across the North East of England. The operation will be led by branch principal Gary Fawcett, who arrives at the firm after 23 years at Brewin Dolphin.

He is joined by chartered wealth managers James Carrick and Rob Brotherton, who spent seven and 23 years at Brewin respectively.

The trio will provide discretionary investment management and financial planning services to clients including individuals, companies and trusts.

In May, former Killik duo Dasha Plotnikova and Max Scholey joined Raymond James to set up a branch in Fulham.

Commenting on his appointment, Fawcett said: “I have always been a firm believer in putting clients first and finding personalised solutions to their situations, and so Raymond James was a perfect fit in terms of culture and aligning on this focus.

“What clients most want is honesty, trust, good value and expert advice, and that is exactly what James, Rob and I plan to focus on as we build and grow the branch.”

For more insight on UK wealth management, please click on www.portfolio-adviser.com

Raymond James Fulham will provide discretionary investment management services to clients primarily in southwest London, while also servicing clients throughout the UK.

Plotnikova started her career in the research team at Killik before becoming an investment manager.

On joining the firm, she said: “Raymond James gives us the perfect middle ground of being able to run our own practice while having the support of the Raymond James network.

“Within our own branch, we can focus on doing what we do best – building strong client relationships and managing investment portfolios.”

Scholey also arrives from Killik after beginning his career at the firm in 2013 as a branch assistant, before taking up the role of senior investment manager.

He added: “More and more wealth management companies are moving down the centralised model route. We feel that each client deserves a bespoke portfolio built around them.

“Partnering with Raymond James allows us the freedom to think about what is best for each client and manage their investments accordingly. Clients will have the security of a big firm and the personalised service of a boutique.”

For more insight on UK wealth management, please click on www.portfolio-adviser.com