British investors are optimistically expecting average annual total returns in excess of 11% over the next five years, despite the uncertainty caused by Covid-19, Schroders Global Investor Study 2020* has found. Average annual return expectations over the next five years have edged up to 10.9% for investors globally, with investors in the Americas expecting performance of 13.2%, according to the study which has encompassed more than 23,000 investors from 32 locations globally. In contrast, European investors are expecting returns of 9.4% on average over the next five years. British investors ..read more

Gamblers should be protected by a new £100-a-month cap on spending to limit the harm that can be done by online gambling, a think-tank recommends today. Gamblers should be protected by a new £100-a-month cap on spending to limit the harm that can be done by online gambling, a think-tank recommends today. The Social Market Foundation also calls for a sweeping overhaul of the way gambling firms are taxed, to put financial pressure on companies registered abroad to bring their operations to Britain. The SMF, a cross-party think-tank, proposed a comprehensive new framework of regulation and oversi ..read more

Official figures show huge growth in the number of people in their 20s and 30s subscribing to a stocks and shares ISA, with the number of Millennials and Generation Z’s investing in ISAs increased by an astonishing 92% in just a year. Millennials and Generation Z investors, people in their 20s and early 30s, are increasingly choosing to invest in the stock market according to analysis of official HMRC data by insurance and investment mutual Scottish Friendly. In an apparent investing boom among young people, the number of Generation Zers and Millennials subscribing to a Stocks & Shares ISA ..read more

The half year chart until June 30th has revealed the 20 investment companies which were most viewed on the AIC website. Traffic to the AIC website was 24% higher than the same period last year and April set a new record for visits to the site, with over 51,000 that month. The top 5 Scottish Mortgage was the most viewed trust. The FTSE 100 constituent has returned 730% over the past 10 years (until 30/6/20). City of London was second. Managed by Job Curtis, it has grown its dividend for 53 consecutive years. Murray International was the third most viewed and completing the top five were Merchan ..read more

UK Government research reveals that renters in London on average pay two fifths of their income towards housing costs, a situation that Shelter is warning could lead to a tsunami of Covid-19 related evictions. The English Housing Survey produced by the Ministry of Housing, Communities and Local Government, which covers England alone, has revealed that private renters bear the highest housing costs, followed by mortgagors, then social renters. Unsurprisingly, housing costs were highest in London for all tenures. The mean weekly housing costs for private renters was £200. For mortgagors it ..read more

IoD survey points to only a quarter of business leaders believing their businesses are prepared for a post Brexit environment as the Government launches an education campaign. Nearly half of the 978 company directors polled in late June in the Institute of Directors survey said they weren’t able to prepare right now, with one in seven distracted by coronavirus and almost a third saying they needed the details of any changes to be clear before adjusting. Those in the financial sector were most likely to be ready while manufacturers in particular had more to do. Directors in services felt especi ..read more

As catwalks are constructed and outfits chosen, the capital is preparing to celebrate London Fashion Week. From 14 February global fashion brands will showcase over 250 designers and generate orders worth an estimated £100m. Many of the world’s most iconic brands are fashion brands, and with increasing numbers of wealthy customers in key emerging markets, the long-term prospects for the industry look bright despite current concerns about the coronavirus. How are investment companies approaching this theme and what does a fashion brand add to a portfolio? Ahead of London Fashion Week, the Assoc ..read more

Robo 2.0: Analyst Cristina Puscas looks at the future of digital wealth managers Investec Click & Invest, Tiller Investments and most recently Moola have all shut their digital wealth manager operations in the last 12 months. These closures add to the existing concerns over the long-term sustainability of robo advisers’ business models. However, despite these concerns, today we have seen some positive numbers from market leader Nutmeg. We also continue to see groups looking to enter the market. Many of the newer entrants seem more interested in the ‘advice’ bit of robo, rather than digit ..read more

Profits fell 10.4%, the third quarter in a row in which more than half of companies have reported lower profits Low oil prices impacting the energy sector drove down collective revenues for the first time in more than three years, dipping 0.6% year-on-year UK profits have grown only 5.8% since 2007 The market consensus for 2020 profit growth has moderated in recent months; median profit growth of 7.5% is expected, down from 8.6% three months ago, but still looks too high UK plc’s earnings recession intensified in Q4, according to the latest Profit Watch UK from The Share Centre, which analyses ..read more

Adviser Asset Allocation (AAA): 9 in 10 believe real assets and alternatives are an important consideration in client portfolios  Nearly all advisers (96%) surveyed believe alternatives are a key aspect of a client’s overall asset allocation This comes as investors are expected to increase capital allocations to this asset class However, perceptions around inaccessibility and transaction costs persist Alternatives have long been in vogue with institutional investors seeking to diversify sources of return but are now rapidly moving into the mainstream retail investment market (industry data sho ..read more