This decision by the largest bank in America coincides with the departures of several other top lenders, such as Goldman Sachs, Morgan Stanley, and Citigroup, who have also left the climate initiative in recent weeks.

These withdrawals pose a significant setback for former Bank of England governor Mark Carney, who is currently evaluating a potential candidacy for Prime Minister of Canada. Carney aims to encourage the finance sector to take more substantial action in reducing greenhouse gas emissions. The alliance is part of the broader Glasgow Financial Alliance for Net Zero (Gfanz), which Carney launched in 2021 ahead of the Cop26 climate conference.

Similarly, other Gfanz-related alliances targeting the insurance and asset management sectors have witnessed a trend of American companies withdrawing, particularly in light of critiques from Republican politicians concerning climate initiatives. For instance, in November, three leading asset managers—BlackRock, Vanguard, and State Street—faced a lawsuit from a coalition of Republican-led states, accused of violating competition laws by using their investment leverage over coal firms to reduce fossil fuel production.

The pressure on corporations regarding their sustainability practices is expected to increase further if Donald Trump returns to the presidency later this month.

This evolving political landscape is believed to influence major US banks’ reconsideration of their participation in the Net Zero Banking Alliance, although the banks have not publicly cited specific reasons for their exits. Despite the ongoing withdrawals, the coalition still boasts over 140 member firms, including some of the largest banks in the UK.

The recent departures have prompted a strategic shift from Gfanz, which announced that it is now welcoming any financial entity that is committed to decarbonizing the economy, regardless of their affiliation with specific industry alliances.

JPMorgan indicated that it will continue to collaborate with Gfanz and other initiatives to promote realistic solutions and favorable market conditions that support a low-carbon and energy-secure future.

However, there is still substantial room for advancement. I hope to see additional changes — some of which may be straightforward requests, while others might seem more ambitious. Here are five items on my wish list.

I find it puzzling that funds do not reduce their fees as their asset bases expand. Some fund management firms excel in passing along cost savings to their investors by lowering fees or introducing tiered pricing based on fund size, but many others do not keep pace.

When a fund is initiated, it typically requires a minimum investment to become profitable for the managing firm. However, beyond a certain asset threshold, the cost of managing the fund doesn’t increase. In fact, it tends to decrease as efficiency improves with scale.

These savings should be passed on to investors. Charging a fee of 1 percent on a fund managing £10 billion in assets feels more like a display of greed than a justified expense.

Increased Transparency

Sometimes fund managers overlook the fact that they are investing our money. While I don’t expect notifications for every transaction, I believe investors deserve timely and clear updates on where their funds are being allocated. This information is crucial for making informed choices about investments and ensuring there is not excessive overlap within their portfolios.

Currently, funds are mandated to disclose their complete list of holdings only once a year, often resulting in outdated information. I propose that funds should be required to provide quarterly updates, with lists not older than 30 days.

Simplified ISAs

If the government aims to encourage broader investment participation, reducing confusion is essential — starting with ISAs. The existence of multiple ISA types complicates matters; it would be far more straightforward to allow individuals to open a single ISA each year and choose between cash savings or investments. Ideally, a centralized online portal would enable users to manage their ISAs while accessing various savings and investment options from multiple providers.

Additionally, the Innovative Finance ISA should be eliminated. This type of account, which is only opened by a limited number of individuals annually, allows for investments in crowdfunding and peer-to-peer loans — both of which involve risks that most investors do not require.

Eliminate Underperforming Funds

Over the past decade, only about one-third of actively managed funds have outperformed their passive counterparts (which track market indices through algorithms). Research from wealth management firm AJ Bell indicates that merely 17 percent of active global funds have outperformed passive options over the same timeframe.

These figures raise serious concerns regarding fees and the overwhelming influence of certain U.S. tech stocks buoying markets. They underscore just how few actively managed funds manage to deliver on their promises of performance.

The fundamental issue is that there are simply too many funds, and a large portion of them underperform. Fund management firms must be bold enough to close funds that do not meet performance standards and merge those that do not offer unique value. Companies should focus on their specific areas of expertise instead of launching new funds to capitalize on fleeting investment trends. Reducing the number of funds may yield more positive comparisons between active and passive management performance.

Additional Support

Investment platforms serve as gateways for most investors to access funds and shares. While these platforms have successfully made investing more affordable and accessible, there is still untapped potential for further improvements.

Many platforms offer a ‘managed service’ where users pay a premium for portfolio assistance, which can be appealing to those seeking guidance. However, it would be beneficial if platforms proactively informed users about cheaper share classes available for existing funds or alerted them to overlapping holdings within their portfolios. Simple automated notifications could effectively flag potential issues without straying into comprehensive financial advice.

This concludes my wish list for the investment sector. Some of these points may seem far-fetched, while others should have been implemented long ago.

If the investment sector and the government truly want to motivate more individuals to invest, they must continue to evolve and prioritize the interests of their clients. Reducing jargon, clarifying processes, and enhancing fairness and transparency should not be reliant on a Christmas miracle.

Originally established in 2005 by Michael Thomson, who serves as majority owner and chief executive, Pour Moi reported a 12 percent increase in year-on-year sales, reaching £20 million for the six months ending September 30. During the same period, pre-tax profits soared by 66 percent to £3 million, as revealed in recent statistics.

The collaboration with M&S, initiated in October of the previous year, has generated over £5 million in sales for the brand within the half-year timeframe. Noteworthy items contributing to this success include the Santa Monica swimsuit and the Amour collection, which have quickly become some of M&S’s standout offerings.

Thomson, a former buyer for M&S, established Pour Moi to meet the demand for stylish lingerie that accommodates women of diverse sizes.

Since its inception, the brand has broadened its product line to include swimwear, sportswear, and nightwear, distributing its products through 250 stockists worldwide, such as Next, Very, and 200 independent retailers.

Pour Moi is also set to make its debut in four John Lewis stores, five Fenwick locations, and four Morleys department stores. There are plans for a new store opening on Oxford Street in central London next month.

M&S has seen an uptick in demand for its lingerie offerings. Recent consumer interest in M&S knickers has contributed to a £1 billion sales increase for the retailer, marking its best performance since 1997.

This surge in sales is particularly noteworthy among millennials and Gen Z shoppers, who represented 30 percent of underwear sales, doubling from the previous year’s figures. The growing popularity among younger customers highlights the effectiveness of Stuart Machin’s leadership in revitalizing M&S’s clothing segment, which had faced criticism for appealing primarily to older demographics.

During a rare public discussion on leadership, the GSK CEO emphasized the need for leaders to understand that they are not all-powerful beings with answers to everything.

“I’ve never subscribed to that idea, and I sometimes find it unfortunate that CEOs are often depicted this way,” she remarked.

In an extensive conversation with Octavius Black, the co-founder of MindGym, a workplace training company listed on AIM, Walmsley revealed she never wakes up feeling powerful, regardless of her location. “Being a leader is about unlocking both individual and collective potential,” she added.

GSK, a major UK pharmaceutical giant, employs roughly 69,400 staff members and operates in over 80 markets globally.

Walmsley, now 53, has held the CEO position since 2017 and also serves as a non-executive director at Microsoft. She mentioned that managing her energy and its impact is crucial.

“In any leadership role, not just as a CEO, you need to be aware of your impact on others,” she said.

“Whether you’re addressing a large audience or having a one-on-one conversation, your energy can uplift, inspire, clarify, or reassure others. Being acutely conscious of this impact helps people do more and aspire to do more,” she explained.

Walmsley credited her background, stating that as the daughter of a naval officer, she understands the importance of setting a clear direction and articulating a vision to guide people.

She also addressed the challenge posed by numerous lawsuits in the US alleging that Zantac, an old GSK blockbuster drug, caused cancer.

“If a lawsuit severely impacts the market value of several companies in the sector, and involves a drug launched when I was in high school, does it change GSK’s investment or strategy, or affect my job?

“We quickly reassured everyone that science supports our stance. We will defend our position rigorously; it will take time due to the US legal framework, but rest assured, the best lawyers are on the case.

“We have a specialized expert team handling this issue, while the rest of the company, 98 percent, focuses on discovering and developing medicines and vaccines,” Walmsley concluded.

A study conducted by the Centre for Economic Performance, a think tank affiliated with the London School of Economics, revealed that Brexit triggered a 6.4 percent decrease in the UK’s overall exports and a 3.1 percent reduction in imports into the UK from other regions. The report highlighted that the export decline predominantly impacted smaller firms, while larger enterprises were mostly unaffected.

The UK officially exited the EU’s customs union and single market in January 2021 under a trade and cooperation agreement that enabled duty-free and quota-free trade for compliant goods. This significant shift resulted in the UK losing access to the EU’s global trade agreements and reinstated a customs border with the mainland.

According to the research, businesses dealing in exports and imports with the EU faced a “sharp and sustained fall in trade” starting in 2021, heavily impacting smaller firms. Notably, exports of goods to the EU plummeted by 30 percent for the smallest businesses and 15 percent for mid-sized corporations. Approximately 16,400 firms stopped exporting to the EU entirely after Brexit, while the effect on larger companies was reported as “insignificant” since they were able to plan for the changes and manage fixed costs effectively.

This export decline represents a loss of £27 billion — a figure derived by comparing the value of trade post-Brexit with what would have been expected had the UK remained within the EU framework.

However, the study did not account for services trade, which has proven more resilient than many economists predicted post-Brexit. The value of the UK’s service exports to the EU continued to rise after 2021, with the trade surplus in this sector reaching £40 billion this year.

Recent trade data indicated that, for the first time in a year, the UK’s exports to the EU surpassed those to the rest of the world during the three-month period ending in October.

The report also noted that businesses adapted to the new trade barriers by shifting their purchasing from the EU to global markets.

“Importers and larger exporters adjusted to the disruptions in ways that mitigated the overall decline in trade. Therefore, aggregate trade has, at least temporarily, shown more resilience to Brexit than initial forecasts suggested. If this trend continues, the economic repercussions of undoing deep economic integration may be less severe than previously anticipated,” the researchers stated.

Meanwhile, Labour has committed to “resetting” its relationship with the EU and intends to modify aspects of the trade agreement established by Boris Johnson’s administration. Sir Keir Starmer is set to participate in a dinner with the EU’s 27 heads of state and government for the first time since the commencement of Brexit negotiations in February. Rachel Reeves met with European finance ministers at the Eurogroup this month, advocating for “a relationship founded on trust, mutual respect, and pragmatism.”

However, the current government has reiterated its commitment to its “red lines,” which include avoiding the single market, customs union, and unrestricted movement of people from the EU. Labour has also expressed a desire to impose stricter immigration controls while seeking a deeper defense partnership with the EU.

Due to changes following Brexit, UK-based advisers can no longer provide services to clients moving to the EU. Therefore, it’s advisable to seek out a firm that is authorized to offer advice in both the UK and France. Consulting an accountant who understands the complexities of UK and French tax regulations would also be beneficial, particularly since the French tax system may not recognize UK tax-efficient accounts like ISAs.

At Killik & Co, we suggest a “three pot strategy” for savings and investments. The first pot should serve as an emergency fund, ideally containing three to six months’ worth of living expenses, and should be kept in a readily accessible cash account.

The second pot is intended for any expected large expenses, such as a vehicle purchase or home renovations. Any surplus funds after these two pots can then be strategically invested, depending on your financial objectives.

Generating Investment IncomeIf you are on a break from work, you may need your investment portfolio to provide a source of income. On the lower risk spectrum, consider a portfolio composed of government and corporate bonds, which involve lending to governments or companies in exchange for a fixed interest rate.

A portfolio of bonds could yield annual returns between 4 and 6 percent; however, the capital growth potential may be limited. Consequently, if you withdraw all the income, the capital value may not keep pace with inflation. Exploring alternative assets like commercial real estate and infrastructure funds can offer both income and capital growth.

On the higher risk side, equities have been known to yield better returns than other asset classes, albeit with higher volatility. A globally diversified equity portfolio might generate an income yield of 1 to 2 percent annually while providing substantial long-term capital gains.

Consideration of Currency RiskIf you plan to establish residency in France, converting a portion or all of the £500,000 into euros could be advisable. In recent months, the pound has appreciated against the euro, with the exchange rate moving from 1.15 to 1.20. In terms of investments, there are reputable euro-denominated companies like SAP and ASML in technology, as well as L’Oréal. The major 11 companies in Europe, dubbed the Granolas, are viewed as comparable to the prominent tech stocks in the U.S.

Planning GiftsIf part of your financial strategy includes gifting to your adult children, doing so shortly after receiving the proceeds from your home sale could be an opportune moment. Such gifts are considered “potentially exempt transfers” for inheritance tax, meaning they could be excluded from your estate after a period of seven years.

Expert insights from Rachel Winter of Killik & Co.

Scale-ups are characterized as companies achieving an average annual growth rate of over 20 percent over three years, highlighting their significance in driving economic advancement. However, these firms frequently encounter hurdles like limited access to funding, a shortage of skilled professionals, and challenges in presenting a compelling investment proposition.

Frontier IP, listed on AIM, aims to address the obstacles faced by university spin-outs by bridging the gap between innovative technologies and financial markets, alongside industrial collaborators. They leverage their expertise and time rather than capital to achieve this.

Neil Crabb, the founder and group CEO, asserts that the UK is in an advantageous position to forge these critical links. “The UK boasts leading-edge technology, with four universities ranked among the top ten globally, and has robust financial markets. Our focus is to connect these elements while engaging industry partners to unlock their potential,” he stated.

Within Frontier IP’s £33 million investment portfolio, there are 18 scale-ups at various developmental stages, organized into clusters according to their underlying technologies and necessary industrial processes to facilitate growth. Similar methodologies can often serve multiple sectors; for example, understanding powder handling is crucial for both food ingredient companies and tile manufacturers.

The six technology clusters include artificial intelligence, advanced materials, healthcare enablers, agritech and food production, energy solutions, and water management. Notably, companies may be part of several categories. For instance, Fieldwork Robotics operates within the food and agritech cluster, utilizing robots to harvest soft fruits, while also belonging to the AI cluster due to its reliance on sophisticated machine-learning techniques to discern ripe raspberries.

Crabb, who holds an Oxford education and co-founded Sigma Capital Group, emphasizes the importance of seeking technologies that are globally relevant and align with his team’s expertise and knowledge domains. Furthermore, he highlights the necessity for these technologies to be both cost-effective and scalable.

He notes that while academics excel at creating singular or small-batch products, “industry demands scalable solutions for efficiency, particularly those that integrate with existing manufacturing processes.”

Understanding the supply chain is equally important when it comes to bringing a new product to market. “You need to fully grasp the end-customer’s requirements as it influences your potential partners,” Crabb explained.

Establishing effective management teams is vital, as most academics focus on their technologies without business building experience. As Crabb pointed out, assembling the right management team necessitates a clear understanding of the product’s market fit to attract suitable talent.

This strategy was successfully implemented at Pulsiv, a company within Frontier IP’s portfolio that is pioneering highly efficient power conversion technology. Unlike typical technologies that convert around 50 percent of consumed energy, Pulsiv can achieve over 90 percent conversion efficiency. Their inaugural product features a reference design for an exceptionally energy-efficient 64W USB-C charger.

With Frontier IP’s guidance, Pulsiv secured notable leadership talent, including former Arm executive Darrel Kingham as CEO and ex-SharkNinja CTO Tim Moore as chief product officer.

Crabb elaborated on Frontier IP’s mission: “We validate technologies, cultivate industry partnerships, and comprehend the market landscape, enabling us to recruit the right management teams to enhance a company’s prospects for success.”

When selecting candidate companies, functionality and cost-effectiveness take precedence over being environmentally friendly. Crabb remarked, “Our goal is to identify technologies that address significant global needs at a competitive cost, and although sustainability is important, it ranks third after function and cost. That said, more efficient technologies tend to be environmentally friendly as well.”

Frontier IP typically takes long-term stakes in the firms they develop, which they may hold for a decade or even longer. They outline two primary exit strategies: an IPO or a trade sale.

One of their most notable successes has been Exscientia, which focuses on AI-driven drug discovery. Frontier IP co-founded Exscientia when it was established in 2012, and the company made its public debut on the Nasdaq Global Select Market in October 2021, with a staggering valuation of $2.9 billion. Overall, Frontier IP generated £14 million from the sale of Exscientia shares, which had originally cost less than £2,000.

Among promising companies in its portfolio is Cambridge Raman Imaging, known for its high-speed lasers and advanced AI technologies that generate and analyze intricate digital images in nearly real-time. Their initial focus is on medical applications for diagnosing and monitoring tumors and other diseases at the cellular level.

Despite a challenging financial year due to tighter credit conditions, resulting in a reported loss of £1.3 million for 2024, Frontier IP has remained committed to supporting Cambridge Raman Imaging. They currently hold a 26.8 percent stake and have set up a loan facility to promote growth following the impending commercial launch.

In its annual report, Frontier emphasizes that when market conditions are tough, their innovative business model’s fundamental principles emerge, with a focus on quality over quantity.

Scaling Up Success: A Case Study from Frontier

Alusid specializes in producing high-quality tiles, tabletops, and surfaces from sustainable materials derived from recycled industrial waste, significantly reducing their carbon footprint compared to conventional tiles.

Frontier IP holds a 35 percent stake in Alusid, which has successfully refined its processes to scale up production.

The company’s tiles are mass-produced by subcontractors utilizing industry-standard machinery, and they count Topps Tiles among their clients while exploring international market opportunities, particularly in Europe.

CEO Dr. Alasdair Bremner, a previous academic from the University of Central Lancashire, remarked: “The support from Frontier IP has been crucial—right from the beginning, they aided us through the challenging transition from the academic setting to the commercial landscape. They assisted us in securing funding and establishing partnerships with major firms, including Topps Tiles.

“They have played a vital role in helping us commercialize our technology internationally while maintaining low overhead costs, including structuring deals, refining pitches, and identifying appropriate markets and developing robust business plans.

“They also offer excellent collaboration during challenging times or schedule delays, and we take pride in being part of their innovative materials network.

Alusid recently secured £1.13 million in funding with backing from Octopus Investments and is considering an IPO, making it a candidate for the next exit from Frontier IP’s portfolio.

Recently, Alusid signed its initial international distribution agreement with Front Materials, a leader in sustainable building solutions in the Netherlands.

Front Materials will have exclusive distribution rights for Alusid’s wall and floor tile products in the Netherlands, and they will have the option to distribute to other European countries and the U.S. on a non-exclusive basis.

Bremner stated, “This agreement represents an exciting milestone in our international growth strategy.”

This group includes an estimated 1 million to 1.5 million homeowners who have already transitioned to a higher rate once and will be required to refinance again on potentially even more costly terms by the close of 2027.

For many, experiencing the impact of higher mortgage rates will be a new challenge. The Bank indicated that 37 percent of those with fixed-rate mortgages had not adjusted their deals since borrowing costs began to escalate in late 2021.

As a result, about 2.7 million homeowners, which constitutes 31 percent of all mortgage holders, will be moving to a deal with an interest rate exceeding 3 percent for the first time, according to the Bank’s findings. Furthermore, around 420,000 borrowers are projected to see an increase in their monthly payments exceeding £500.

On a more positive note, an additional 2.4 million mortgage holders who have recently switched to higher-cost deals may start experiencing some relief due to the interest rate cuts implemented by the Bank since the summer.

This assessment of the mortgage market was included in the Bank’s recent financial stability report, which indicated that British households and businesses were likely to remain resilient overall.

Nonetheless, regulators cautioned that broader risks to the financial system are intensifying.

In the semi-annual report, the Bank’s financial policy committee highlighted that “global risks stemming from geopolitical tensions, global fragmentation, and pressures related to sovereign debt levels are still significant.”

It further noted that “uncertainty surrounding and risks to the forecast have escalated. As the UK operates within an open economy with a substantial financial sector, these risks are especially pertinent to the stability of UK finances.”

Thom even considered medical school despite his fear of blood. However, it was James, then standing in a car park in Peckham, South London, who had an epiphany. Observing the queue for Yianni Papoutsis’s burger van, an old ambulance, he realised that street food could be done on a tight budget.

Papoutsis, who co-founded the MEATliquor restaurant chain with Scott Collins, was part of a wave of street food entrepreneurs capitalizing on the financial crisis era’s trend of affordable yet high-quality food in London.

“I believe 2009 to 2012 for food in London was akin to 1963 to 1969 in music,” said Thom, 40. “Many remarkable businesses that grew exponentially started then.” This golden era saw the birth of ventures like Dishoom, Caravan, and Flat Iron.

“Suddenly, the most exciting food experience was enjoying a [steamed] bao bun on the street, not in a restaurant with white tablecloths,” James added.

What began as a vague idea ultimately evolved into Pizza Pilgrims, a chain now on the verge of opening its 25th restaurant. By 2023, the brand reported revenues of £28.7 million and pre-tax profits of £714,000. Revenue forecasts predict a 20% increase by June 2024.

Initially, the vision was simple: A Piaggio Ape tuk-tuk with a pizza oven for hire at weddings and events. To refine their skills, James proposed a journey through Italy in the Ape, which his TV production company approved. In summer 2011, with a crew in tow, they arrived in Sicily.

A pitstop in Naples introduced them to Neapolitan pizza, solidifying their business model.

The adventure became a Food Network documentary, but reality set in. Thom resumed work in advertising while James continued the venture—from events to a Berwick Street market stall near Thom’s office, who joined during lunch rushes.

“From 2012, our market trader roots saw us braving a full winter on Berwick Street,” James shared. Earnings were minimal, at £100 a week, pushing them towards a permanent restaurant.

Through some early Instagram networking, they connected with restaurateur Russell Norman, leading to a spot on Dean Street. They raised £250,000 from 15 investors, used £150,000 for the lease, £70,000 on fit-out, with £30,000 for additional costs.

“It was a shoestring budget,” said Thom. The brothers did the painting and repurposed old tables. With no air-conditioning, opening in August 2013 under sweltering heat, they earned two-star reviews from London newspapers.

Persistence paid off, and a year later, West End landlord Shaftesbury Capital approached them for a larger site in Kingly Court. Initially hesitant, investor advice led them to their busiest outlet.

“That’s when it felt like a real business,” remarked James. Profits from two restaurants funded their third in Exmouth Market. “We dislike debt,” Thom added, attributing their frugality to their street food beginnings.

James manages fit-outs, sourcing second-hand furniture and decorative items from Naples, where 80% of their chefs hail from.

A loan backed their fifth site, and in 2017, they sold a stake to a private wealth firm, their largest investor. In 2021, an 8% stake went to private equity firm Imbiba for £3.5 million. Despite nearing minority ownership, they retain decisive voting control.

From London to Leeds, Nottingham, Brighton, Cambridge, and Cardiff, they’ve expanded (though Oxford’s stint was short-lived). The Elliots credit their success to Neapolitan ingredients and staff loyalty, boasting long tenures among employees.

Promotion from within is key, along with experienced hires like Gavin Smith, now managing director, and decade-long finance director Sophie Gilchriest.

“We’re conscious about overstepping as founders,” James concluded. “We step aside for experts when needed.”

High Five

My hero … Thom: “[Sir] John Timpson. We spent a day with him five years ago, and I admire his team-centric business ethos.” James: “Not a business hero, but Billy Connolly. His humor, essential in business, is inspiring.”

Best decision … James: “Starting Pizza Pilgrims with Thom. Our diverse skills complement each other perfectly.”

Worst decision … James: “Buying six fridges from ‘Skip’ for Dean Street. They failed within a day. Always invest in reliable appliances.”

Funniest moment … Thom: “At an ’80s festival, we named pizzas after pop stars. Then Chesney Hawkes himself ordered a ‘Cheese-ney Hawkes’—a memorable encounter.”

Best business tip … Thom: “Be prepared to take risks. During tough initial days, trading pizzas sustained us. I also couldn’t have done it without my supportive wife.”