An adviser who scammed his family, Lindsell Train's struggles and digital assets - here's our weekly heads-up on the financial stories that may have caught your clients' attention over the weekend …
So-called ‘star manager' Nick Train's £6.6bn Lindsell Train UK Equity fund has been downgraded by research group Square Mile amid fears it could struggle to deal with a prolonged sell-off, The Sunday Times reports.
Nearly £600m has left the fund since June following six months of poor performance. For a decade, the fund has been one of Britain's best performing, but doubts have been raised over whether Train's "growth" style of investing, which focuses on companies with strong earnings, will continue to work. Square Mile downgraded the fund from AAA to A, which is still a high rating.
Train tells The Sunday Times: "In the 10 months to the end of October, the fund returned 19.4%, compared with 12.8% for the FTSE All Share index. The fund has not been immune to the trend of widespread outflows from UK equity funds this year, but flows over the 10 months to the end of October have been marginally positive."
'Mum, you're not going to like this but I've spent the money'
A Derbyshire adviser who stole more than £600,000 from his own family to fund a life of luxury has been sentenced to six years and four months in prison, The Yorkshire Post reports.
David Nicholas King stole hundreds of thousands of pounds of his late grandmother's life savings and 'frittered away' money given to him by other members of the family who thought he was going to invest it for them using his financial expertise.
The financial adviser, 38, spent the money on holidays - including a trip to the Ryder Cup in the USA - designer clothing, expensive cars and days out shooting.
South Yorkshire Police says King revealed his crimes by telling his mother "you're not going to like this but I've spent the money".
From Facebook and iTunes to cryptocurrencies - what happens to your digital assets when you die?
Losing a loved one is a difficult time for anyone and sorting out their finances it something that must be done. However, this Financial Times article asks what happens to our digital assets when we die.
A case involving Rachel Thompson, whose late husband died a few years ago and had not made a will, reached UK courts earlier this year. Thompson had to turn to the courts to obtain an order forcing Apple to allow her access to her husband's online account so she would be able to retrieve family photos.
According to the FT, VWV law firm senior associate Angharad Lynn says while most people have a digital aspect to their life, very few of us have made any preparations for what will happen to these digital assets when we die. She recommends adding social media accounts and other digital assets to a list so that bereaved ones can close accounts.
Our weekly heads-up for advisers
The Financial Services Compensation Scheme (FSCS) declared 11 adviser firms in default between 1 August and 31 October.