•   
  •   

UK News Funds that manage £5 TRILLION - and cut fees using robots

02:15  25 october  2020
02:15  25 october  2020 Source:   dailymail.co.uk

Rich must pay for Covid borrowing binge, says IMF as global debts soar

  Rich must pay for Covid borrowing binge, says IMF as global debts soar In a bleak report, the IMF said the cost of protecting households, jobs and businesses has climbed to a 'staggering' £9trillion, blowing a huge hole in the public finances of nations around the world.The Washington-based watchdog said the cost of protecting households, jobs and businesses has climbed to a 'staggering' £9 trillion, blowing a huge hole in the public finances of countries around the world.

Consumer robo -advisor platforms offered by giants such as Vanguard, JPMorgan Chase & Co. (JPM) and Bank of America Merrill Lynch (BAC), are likely to see their growth explode five -fold to manage .26 trillion in the next few years. While robots currently account for a relatively small portion of the

A huge acceleration in the use of robots will affect jobs around the world, Oxford Economics says. The challenge for governments is how to encourage the innovation that the robots promise while However, if there was a 30% rise in robot installations worldwide, that would create $ 5 trillion in

The future: Worldwide, more than £5trillion is invested in ETFs © Provided by This Is Money The future: Worldwide, more than £5trillion is invested in ETFs

Easy, cheap and abundant. That is the lure of Exchange Traded Funds – and investors are increasingly giving in to their appeal. These investment funds, that typically track the performance of specific stock market indices or the value of precious metals such as gold, are enjoying a meteoric rise with huge sums of money flowing in. Worldwide, more than £5trillion is invested in them.

MailOnline logo © Provided by This Is Money MailOnline logo

Hector McNeil is co-founder of HANetf, which helps create Exchange Traded Funds for financial companies and fund managers. He says: 'The sector is enjoying rapid growth and it will continue, fuelled by the product's greater transparency and lower fees compared to traditional investment funds.'

Almost 60% of fund assets will be ESG by 2025, says PwC

 Almost 60% of fund assets will be ESG by 2025, says PwC (Bloomberg) - ESG investing is the most significant development in wealth management since the creation of exchange-traded funds (ETFs) two decades ago and will turn the industry upside down as well passive funds. This is the result of a new report from PwC. It predicts that by 2025, 57%, or € 7.6 trillion, of mutual fund assets in Europe will be held in funds that take environmental, social and governance (ESG) factors into account, compared with 15.1% at the end of last year.

Robo -advisers could manage .2 trillion by 2020, the report said. Mutual fund companies including Charles Schwab Corp. and Vanguard Group Inc. already have created their own The ranks of financial advisers will shrink as consumers switch to robots and some human brokers adopt

Passively managed funds are almost always less expensive than actively managed funds . Quantitative funds , commonly referred to as quant funds , usually carry lower expense ratios than funds managed more aggressively by salaried employees. Small-cap and international funds tend to

Nusrath Hussain, ETF specialist at provider Vanguard, says such funds have been investment 'winners of the Covid-19 crisis', proving resilient in a market with 'unprecedented levels of volatility'.

Like any other investment fund, an ETF is made up of different investments. But rather than paying extra for such diversity, they are low cost and can be bought and sold like individual shares.

Most ETFs track an index, such as the FTSE100 or the S&P500 – measuring respectively the performance of the London Stock Exchange's top 100 companies and the 500 largest companies publicly listed in the US.

Adrian Lowcock, head of personal investing at the investment platform Willis Owen, says: 'ETFs are often used to access the market as a whole. In volatile market conditions they are popular because many investors just want exposure to the market as opposed to deciding which fund manager will make the most money for them.'

Army reveals bug-like drone as Defence Secretary warns of tech race

  Army reveals bug-like drone as Defence Secretary warns of tech race The sci-fi-style Army kit was shown off on Salisbury Plain yesterday, with Challenger 2 tanks or Warrior armoured vehicles launching the remote-controlled unmanned devices.The sci-fi-style Army kit under development was shown off on Salisbury Plain yesterday.

Cutting edge digitally native brands are experimenting with voice commerce, partnering with luxury Las Vegas On the other hand, worldwide ecommerce sales topped . 5 trillion USD, an increase of Level 5 automation, or automation that manages itself with no humans involved, will likely require the

The Tax Cuts and Jobs Act nearly doubled the standard deduction to ,000 for individuals and ,000 for married couples filing in 2018, so the itemized deductions would have to The wealthy also look to manage those capital gains and losses to their tax advantage, Featherngill pointed out.

There are many benchmarks and indices an ETF can follow – those tracking equities, bonds, gold or specific market sectors such as technology and healthcare.

Lowcock adds: 'One of the most popular asset classes at the moment is gold, despite recent falls in the price. ETFs are one of the cheapest and easiest ways to get direct exposure to this precious metal.'

A growing trend this year is ethically orientated ETFs – ones that reinforce positive investment choices that support the environment or society. These accounted for more than a quarter of money that flowed into ETFs in the third quarter of this year.

Investment manager BlackRock plans to double the number of ethical ETFs it offers in the next few years.

A flurry of 'robo-advisers' in the UK has helped fuel the take-up of ETFs. The likes of Nutmeg, Wealthify and Moneyfarm provide investors with portfolios heavily made up of ETFs and other index tracking funds. It is a way of providing diverse investment portfolios at a low cost.

What is the cheapest way to send money to my daughter in Australia?

  What is the cheapest way to send money to my daughter in Australia? Britain's high street banks can charge hefty fees to those sending and receiving money across borders, and often take a chunk of commission rate on the exchange rate too.I would like to send her a small amount of money several times a year. However, my UK bank charges me £25 to send the money and my daughter £5 to receive it.

Bernie Sanders says his financial transaction tax would raise trillions to pay for free college. Then, he would have used the tax as part of a package to finance some of his domestic agenda that included free college and universal free health care.

From robot simians that can clean up nuclear accidents, to powered exoskeletons that enable you to lift huge objects, robotic technologies are developing incredibly quickly. Ashitey Trebi-Ollennu, chief engineer at Nasa’s Jet Propulsion Laboratory, talks us through five robots that are changing the world.

The average cost of an ETF in the UK is around 40p per £100 invested. By comparison an actively managed investment fund is likely to be closer to £1. ETFs can be held inside an Isa, shielding returns from the outstretched arms of the taxman.


Video: Negative Yielding Debt Near Record (Bloomberg)

James McManus, chief investment officer at Nutmeg, says: 'I believe ETFs are superior to conventional mutual funds in almost every way.

'Investors can see exactly what risks they are exposed to; can easily buy and sell them in a liquid marketplace; and they get to keep more of their returns, instead of seeing them leak away in fund management charges.'

Mark Fitzgerald, head of product specialism at Vanguard, agrees. He says: 'ETFs have helped to democratise investing.

'Whether you're a retail investor with £100 to invest, or a pension fund with £100million, you both pay the same percentage fee. That's not the case with traditional funds, where larger investors usually get sizeable discounts on charges.'

ETFs are usually described as either 'physical' or 'synthetic'. Physical versions invest directly in the bonds or shares that make up an index.

Joe Manganiello's new hair may mean a bigger role in Justice League Snyder cut

  Joe Manganiello's new hair may mean a bigger role in Justice League Snyder cut Or maybe it's just his winter look?Those who stayed behind for the post-credit sequence of Justice League will know that Manganiello had a brief cameo as the deadly DC assassin. He looked all menacing as he stepped onto Lex Luther's yacht.

For other uses , see IMF (disambiguation). International financial institution. Through the fund and other activities such as the gathering of statistics and analysis, surveillance of its The current Managing Director (MD) and Chairwoman of the IMF is Bulgarian economist Kristalina Georgieva

25. If we don’t _ on electricity, there will be power cuts . economics. economical. Match them with definiti … ons 1-10.adverb really2verb make less34adverb a little bit 5 linking word used to connect or contrast twofacts6verb say that sth is true7as said or shown by sbS.verb include several

Synthetic versions have the same aim – to track an index – but don't actually hold the underlying components of an index.

Instead, they use complicated financial instruments such as derivatives to replicate the performance of the index they are tracking. However, some experts are critical of these synthetic funds and say they are riskier than their physical equivalents.

The majority of ETFs are 'passive', simply tracking an index, and that is part of the reason they are in demand. But actively managed alternatives exist, too, whereby fund managers attempt to beat an index.

Despite clear benefits, there are also caveats – as with any type of investment.

Lowcock adds: 'Just because you can invest in something doesn't mean you should. A lot of ETFs are created for professional investors and should only be considered for experts in their fields.'

He adds: 'There is an assumption that because ETFs are largely passive, they are not as risky. This is not the case. As with any investment, do your research first.' Fitzgerald warns against trying to 'chase the latest trends with niche ETF products'.

He says: 'Hundreds of ETFs have been launched over the past few years, and not all are suitable for retail investors.

'We believe those that follow broad, diversified highly liquid markets, such as the FTSE 100 and the S&P500, will give investors a better chance of investment success – if held as part of a balanced portfolio.'

The holy grail of vinyl: the art of half-speed mastering

  The holy grail of vinyl: the art of half-speed mastering Abbey Road mastering engineer Miles Showell describes half-speed mastering as 'the holy grail of vinyl cutting'. But what exactly does the process involve?Miles Showell began his career in 1984, learning the art of disc cutting and tape copying. He joined Abbey Road Studios in 2013 and, as an expert in half-speed mastering, has remastered many of the world’s biggest artists, including The Who, The Beatles, Disclosure, Queen, Eric Clapton, The Rolling Stones and, recently, Brian Eno.

But most experts agree there is no ignoring ETFs right now. McNeil adds: 'Asset managers without an ETF strategy risk becoming the next failure case study in economics and management classes.'

If you are an investor, there's a strong chance you are exposed to ETFs already.

But if you haven't yet joined the party, you are most definitely invited.

MOST POPULAR EXCHANGE TRADED FUNDS

UBS ETF MSCI EMU

What it does: Tracks the performance of the MSCI EMU index – a basket of large and mid-cap stocks trading on stock markets within the European Economic and Monetary Union.

Invesco S&P 500

What it does: Tracks the S&P 500 Index in America, providing exposure to large-cap US companies – with an emphasis on information technology and healthcare stocks.

UBS ETF MSCI Canada

What it does: Tracks the MSCI Canada Index – an index predominantly exposed to financial stocks. The largest component of the index is the e-commerce company Shopify.

Xtrackers MSCI USA

What it does: Provides direct exposure to a portfolio of large and mid-cap US equities, including the likes of Apple, Amazon and Facebook.

Invesco EQQQ NASDAQ-100

What it does: Tracks the NASDAQ-100 index in the US. It is mainly invested in technology stocks with Apple, Microsoft and Amazon the top three holdings.

Source: Morningstar

Read more

Can't get a refund? Take stubborn companies to court! .
Readers are using the small claims court to win their cash back. It comes after we reported how Pam Watts won £2,112 from British Airways after it cancelled her return flight without telling her. The story prompted readers to get in touch with their own small claims successes. © Provided by This Is Money Legal eagles: Readers are using the small claims court, where fees start from just £25, to win their cash back Former Royal Marine Duncan Christie-Miller spent four months chasing a refund for a two-week cruise to Alaska and Japan with his wife Mavis, 76.

usr: 6
This is interesting!