Our monthly economic review is intended to provide background to recent developments in
investment markets as well as to give an indication of how some key issues could impact in the future.
It is not intended that individual investment decisions should be taken based on this information; we are
always ready to discuss your individual requirements. We hope you will find this review to be of interest.

Official data has revealed that the headline rate of inflation in the UK is now at its lowest level since August
2016, as the economic fallout from the COVID-19 pandemic continues to force price rises down.
Figures released by the Office for National Statistics (ONS) showed that the Consumer Prices Index (CPI) 12-month rate – which compares prices in the current month with the same month a year earlier – dropped to 0.8%
in April. This was significantly lower than the previous month’s rate of 1.5% and represented the largest monthly fall in more than a decade.
A key factor behind this easing was a large reduction in petrol and diesel prices, following coronavirus-related
weakness in global oil prices. Cheaper clothing and footwear also helped force down April’s overall inflation rate, while previously announced price caps saw a reduction in household utility bills. There was some upward pressure, however, with prices of games and toys, as well a fresh vegetables, rising. ONS did strike a note of caution with
the data, as 92 items in the basket of goods and services used to calculate CPI inflation were not available to price checkers in April. These ranged from cinema popcorn and restaurant cups of coffee, to haircut prices. As a result, ONS fears inflation readings may be more volatile than usual. Over the coming months, inflationary
pressures are expected to ease further. Indeed, Bank of England (BoE) Deputy Governor Ben Broadbent has said the
Bank expects the CPI rate to approach zero during the fourth quarter and even suggested there was a possibility that
inflation might turn negative at the turn of the year. Mr Broadbent did, however, insist this would not represent the start of a damaging deflationary period.SFFS Economic Review_May 20

Newly appointed Chancellor of the
Exchequer, Rishi Sunak, delivered
his first Budget on 11 March,
against a backdrop of uncertainty
following the COVID-19 outbreak
and subsequent financial losses. It
was the first of two Budgets to be
delivered in 2020, with the second to
follow in the autumn.
COVID-19 AND THE NHS
The Chancellor wasted no time in diving
into the heart of the issue on the
minds of so many across the nation: the
COVID-19 crisis. Taking an empathetic
tone, he reassured the British public
that “we will get through this together”,
emphasising the temporary nature of
the crisis and his firm belief in the ability
of the British economy to weather
the storm.
Mr Sunak then called on all parties
across the House to support his £30bn
fiscal stimulus, including welfare and
business support, to “keep this country
and our people healthy and financially
secure”.
He pledged:
• £5bn emergency response fund to
support the NHS and other public
services
• Statutory Sick Pay (SSP) will
be paid to all those advised to
self-isolate even if they don’t
have symptoms
• To support businesses employing
fewer than 250, the government
would refund up to 14 days’ SSP
• A Coronavirus Business Interruption
Loan Scheme will support small
businesses experiencing increased
costs or cashflow disruptions, providing
access to £1bn of government-
backed loans
• Business rates in England will be
suspended for 2020-21 for firms
in the retail, leisure and hospitality
sectors with a rateable value
below £51,000
• Any company eligible for small
business rates relief will be allowed
a £3,000 cash grant.SFFS Simply Wealth Spring Budget_Mar 20

Our monthly economic review is intended to provide background to recent developments in
investment markets as well as to give an indication of how some key issues could impact in the future.
It is not intended that individual investment decisions should be taken based on this information; we are
always ready to discuss your individual requirements. We hope you will find this review to be of interest.

At the end of April, several major global markets
closed the month in positive territory. On the last
trading day of the month, Europe’s largest markets
lost most of the healthy gains accrued the previous
day, as cautious statements from economists and
central banks weighed on sentiment.
• The FTSE 100 surged back above the 6,000 mark
on Wednesday 29 April, buoyed by positive results
from a trial of antiviral drug remdesivir, but after
a tumultuous day of trading on the last day of the
month, the index closed on 5,901.21, a monthly gain
of 4.04%. On 30 April, energy price stocks slid as oil
major Royal Dutch Shell cut its dividend for the first
time since the end of the Second World War. The FTSE
250 gained 8.96% in the month to close on 16,454.46
and the AIM index closed the month up 18.77%. On
European markets, the Euro Stoxx gained 5.06% in
the month and in Japan, the Nikkei 225 gained 6.75%.SFFS Economic Review_Apr 20

Our monthly economic review is intended to provide background to recent developments in
investment markets as well as to give an indication of how some key issues could impact in the future.
It is not intended that individual investment decisions should be taken based on this information; we are
always ready to discuss your individual requirements. We hope you will find this review to be of interest.

March was a challenging month for global markets,
as investors assessed the economic damage from
the pandemic. Although some indices have rallied
in the last week or so, they largely remain down
over the month and the quarter. Many central banks
have taken decisive fiscal and monetary action to
shore up economies, which, to some extent, has
served to stabilise financial markets, but as the
virus spreads, large-scale uncertainty remains.
• Some indices rose on the last day of March,
following the release of stronger-than-expected
industrial data from China, which raised hopes that
the world’s second-largest economy could stage a
rapid recovery. The official survey of Chinese factories
indicates the easing of restrictions has prompted a
rebound, with the manufacturing sector’s Purchasing
Managers’ Index reading 52.0 in March, well above
forecasts of 45.0 and a significant increase from the
record-low figure of 35.7 in February.
SFFS Economic Review_Apr 20 SFFS Simply Wealth Spring Budget_Mar 20 SFFS Economic Review_Mar 20

The New Year period is a
common time for people to
take stock of their finances and
make resolutions designed to
boost their financial wellbeing.
And a new study has found
the likelihood of success in
this area is heavily linked to
receiving professional advice
and the establishment of clear
financial objectives.
Advice is key to success
The recently released research1 actually
provides a quantitative measure of the
value attributed to advice when it comes
to helping investors achieve their goals.
The US study was based on real-life data
relating to more than 100,000 advised
investors and found that eight out of
10 with a defined retirement goal had
at least an 80% greater probability of
achieving their financial objectives. In
other words, advised investors typically
hit 80% of their financial goals.SFFS Simply Wealth_Winter 20