Good morning and welcome to your Morning Briefing for Tuesday 27 May 2025. To get this in your inbox every morning click here.
Gold-led rally propels commodities past liquid alternatives in global AUM
Commodity-focused funds have overtaken liquid alternatives in global assets under management (AUM) for the first time since 2012, according to Morningstar data for Q1 2025.
The milestone marks a significant shift in investor exposure, though it has been driven more by market performance than fresh inflows.
While interest in commodity strategies has picked up recently, net flows over the past three to five years remain subdued.
Phil Wickenden: IHT planning – more than an estate of mind
While there has been a raft of material changes in the world of inheritance tax (IHT) planning — spanning pensions, business relief, agricultural relief and domicile — there are also deeper, long-term trends and disconnects that remain largely unattended.
If these latent issues can be better understood, addressed and embedded into our day-to-day practices, writes Phil Wickenden, founder of Ad Lucem, IHT planning outcomes will improve — for clients, for their families and for adviser businesses.
Quote Of The Day
EU-US trade is unmatched and must be guided by mutual respect, not threats. We stand ready to defend our interests
– EU’s trade chief Maros Sefcovic reaffirms the bloc’s commitment to securing a fair deal with the US, after Donald Trump extended the deadline to negotiate tariffs
Stat Attack
New statistics and research published by the DWP show that efforts to fix state pension underpayments have so far failed, according to LCP partner Steve Webb:
£1.1bn
was set aside by DWP in 2024 for correcting state pension underpayments related to missing Home Responsibilities Protection (HRP).
194,000
people were estimated to potentially receive corrections to their state pension underpayments.
Only 12,379
cases with arrears have been identified so far, leading to payments totalling £104m — just about a tenth of the estimated total.
370,000
letters have been sent by HMRC to alert individuals, primarily pensioners, about potential underpayments.
Source: LCP
In Other News
Axyon AI, an Italian fintech focused on predictive AI solutions for asset managers and institutional investors, has named Ivan Dexeus as head of business development for EMEA.
Dexeus brings over 20 years of international experience in global markets and fintech, having held senior roles at TD Securities, Credit Suisse and Goldman Sachs.
In his new role, he will support asset managers, banks and public institutions in applying AI to enhance investment performance and operational efficiency.
His appointment aligns with Axyon AI’s plans for regional growth following its latest funding round, according to CEO Daniele Grassi.
Monzo has been named Best British Bank at the 2025 British Bank Awards, held in London on Thursday 22 May.
The digital bank also scooped Best Children’s Financial Provider and Best Banking App, cementing its position as a major player in UK financial services, with over 12 million customers.
Organised by Smart Money People, the awards celebrated excellence across the sector, with over 178,000 consumer reviews collected over 14 weeks to determine winners in 29 categories.
Other standout winners included Newbury Building Society, which claimed Best Building Society and Best Building Society Savings Provider.
Triodos Bank retained its lead in ethical finance, winning Best Ethical Financial Provider.
iFast Global Bank was recognised as Best Newcomer for its innovative approach to global banking.
This year’s results highlight the industry’s shift towards digital-first, customer-centric services, with several new names among the winners reflecting rising innovation and disruption in the sector.
UK stocks rally while bonds surge after holiday (Bloomberg)
Xi Jinping’s plan to beat America at AI (The Economist)
UK removes official accreditation from past producer price data (Reuters)
Did You See?
Many people today enjoy higher living standards than the wartime generation, but we are also facing a global health and wellbeing crisis.
Modern lifestyles have contributed to a surge in chronic diseases that are responsible for 74% of all deaths worldwide, up from 61% in the last decade, according to the World Economic Forum.
But 80% of those illnesses, which include heart disease, stroke and type 2 diabetes, can be prevented with simple changes to everyday habits.
Life insurers and brokers, who have a vested interest in the health of their policyholders, can provide incentives that lead to consumers’ improved wellbeing. In turn, insurers benefit as healthier clients who live longer make fewer claims.
By providing value-added benefits to prompt clients to adopt healthier lifestyles, insurers are in tune with a growing awareness of the importance of health.
Read the full article by Lucy Brown, insurer partnerships director at Reassured.
