The UK government's industry-backed 'Invest for the Future' campaign, fronted by the cartoon mascot Savvy the Squirrel, has drawn criticism from City figures who question its effectiveness in boosting retail investment. Launched last week, the campaign aims to encourage more Britons to enter the stock market, reminiscent of the 1986 'Tell Sid' adverts. Savvy the Squirrel appears on bus stops, taxis, and billboards across the country.
Campaign Details and Support
The campaign is supported by major investment firms including Hargreaves Lansdown, Vanguard, Quilter, Schroders, and St James's Place, each contributing between £8 million and £10 million annually for three to five years. A television rollout is planned later this year. Hargreaves Lansdown CEO Richard Flint expressed hope that it would 'create a nation of retail investors.' Economic Secretary to the Treasury Lucy Rigby stated that greater awareness would lead to 'financial resilience' and strengthen 'domestic capital markets.'
Criticism and Missing Information
Despite the campaign's launch, some industry figures have criticized it for lacking essential information on investing. The campaign website contains only four pages with short videos and paragraphs on risk, investment styles, and a checklist about debt. Critics note the absence of explanations about ISAs, funds, and how they work. Others question the choice of a squirrel mascot, inspired by 'squirreling' money away, which contradicts the campaign's goal of encouraging investment. The timing after the end of the tax year has also raised eyebrows.
Firms Opting Out
Some firms, including AJ Bell and Interactive Investor, chose not to participate. Interactive Investor cited cost concerns, while AJ Bell focused on boosting its own brand awareness. Both have since seen customer and net inflow growth. Interactive Investor reported a 14% year-on-year increase in customers to 513,000 and an 88% jump in net inflows to £3.0 billion. AJ Bell achieved record customer growth to 723,000 with net inflows surging to £2.7 billion.
Challenges for Involved Firms
Some participating firms have faced challenges as customers shift to lower-fee platforms with easy onboarding, especially new investors favoring digital-first platforms. Hargreaves Lansdown lowered fees earlier this year to compete. Robinhood has yet to offer UK shares and ETFs, while St James's Place targets high-net-worth individuals, raising questions about their suitability for new investors. Platforms like Freetrade and Invest Engine, ranked top for new investors, were not involved.
Addressing the Investment Culture
Industry figures acknowledge the campaign's intent to improve the UK's investment culture. The government has already taken steps, such as cutting the cash ISA ceiling to £12,000 and introducing the Targeted Support scheme. However, concerns remain about the firms involved and the lack of information on risks like inflation eroding cash savings. Some argue that while the campaign alone is insufficient, the rollout of targeted support could bridge the gap between generic and regulated financial advice, potentially giving the stock exchange a much-needed boost.
