Pensions and investments millions have in these major funds are in for a bumpy ride. Now our experts reveal if it's time to ditch them - and what you need to do now
Global passive funds that track an index of the world's largest companies form the bedrock of most investment portfolios. They give cheap and easy access to thousands of companies and have delivered stellar returns.
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BBC News
an hour ago
- BBC News
Staffordshire library part of £5m modernisation project
A library in Staffordshire is set to be part of a £5m modernisation project, the county council has County Council has revealed Wombourne Library will be one of 10 larger libraries in the region to undergo extensive work in the next few library will close its doors at 16:00 BST on 2 August, with a temporary library set to open in its place in the adjoining community centre on 7 August.A county council spokesperson said work would take about three months, with the library reopening in the autumn. Hayley Coles, Staffordshire County Council's cabinet member for Communities and Culture, said: "This investment is for libraries that haven't been improved in recent years and the money will be spent entirely on improving the public areas."At Wombourne there will be a dedicated children's area, free Wi-Fi and access to the internet, as well as space for people to work on their own devices, access business start-up advice and dozens of other services."She added: "Although Wombourne's temporary library will be a little smaller, residents will be able to order from the service's whole stock as usual."We'll keep them updated as work progresses and I'm sure they'll be pleased with the final result when it reopens."As well as Wombourne, nine other libraries run directly by Staffordshire County Council, including Leek, Stone, Biddulph, Perton, Kidsgrove, Burntwood, Rugeley, Uttoxeter and Cannock, are in line for future investment. Follow BBC Stoke & Staffordshire on BBC Sounds, Facebook, X and Instagram.
Times
7 hours ago
- Times
Influx of long-only funds signals a shift at PTSB
E amonn Crowley, chief executive of PTSB, should buy one of those bar-room signs that declares how all patrons make us happy: some by coming, some by leaving. Last week Crowley would have been happy enough to see NatWest leave the register, and absolutely delirious to welcome Fidelity International and Wellington Management in its stead. The British bank was an accidental investor; its stake part payment for the loan book and deposits sold to PTSB as part of Ulster Bank's exit from the market. It was never a long-term holder. Fidelity and Wellington are long-only funds, the kind of members every public company wants in its club. Forget the ruffian, event-driven hedge funds, these boys are quality. Wellington (5.8 per cent) and Fidelity (4.2 per cent) still rank behind waste magnate Eamon Waters's Sretaw (7.1 per cent). It's possible that all three could look to edge up to just below the 10 per cent level that requires Central Bank of Ireland approval. The big hope is that the two funds will attract other long-term investors.
Times
8 hours ago
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Reeves is right, but she is walking a tightrope — with our money
The chancellor, Rachel Reeves, wants us all to take more risks with our money. That much was clear as she delivered her Mansion House speech on Tuesday. The government is on a mission to get more savers investing in the stock market. Reeves is planning an advertising campaign to help explain the benefits of investing — rather than highlighting the risks — and from April the Financial Conduct Authority, the City regulator, will offer 'targeted support' that will allow banks to alert customers to specific investment opportunities. 'For too long, we have presented investment in too negative a light, quick to warn of the risks without giving proper weight to the benefits,' Reeves said. But she didn't stop there. The chancellor also wants to roll back regulatory rules, not just for investment products (risk warnings will be tempered) but also for mortgages (so that it will be easier to borrow more). Encouraging more people to invest; offering bigger loans to hopeful first-time buyers; and forcing pension funds to invest in the UK. It's all part of the government's masterplan for growing the economy. And for much of this she's right. It is true that UK savers are not keen on investing in the same way as our American counterparts. This can be seen clearly in how we use Isas, with two thirds of accounts held in cash rather than stocks and shares. According to a YouGov survey, 55 per cent of the public were unwilling to invest in stocks and shares. Most of us need to invest more and stop our love affair with cash. There is a belief that investing is akin to gambling — not helped by the stringent 'your investment can go down as well as up' warning displayed on every money billboard, piece of paperwork and website. Savers so often forget that leaving your money in cash isn't risk-free, especially in a high-inflation environment. More savers need to become investors. But let's not forget why those regulatory rules were introduced in the first place. Are we now heading back to the hazy days of 2008 when you could get a loan for more than a property was even worth? Light regulations, then a crash, then tighter regulations: it's the same old merry-go-round, with seemingly no lessons learnt from the last ride. • How to get a nation of savers investing And again, as is so often the case, politicians are ignoring that this is our money, not theirs, that they are playing with. The right choices need to be promoted. So much could go wrong if the wrong advice is given or unsuitable products are pushed. Investing in high-risk vehicles such as the long-term asset fund that invests in private markets and infrastructure assets could open the door to a potential mis-selling scandal. Yet the plan is for savers to be able to do this through their Isas. For most beginner investors, the best way to dip a toe into the market is typically by investing in a standard tracker fund. Not only will your assets be diversified (as you invest in often hundreds or even thousands of different companies to spread your risk), you will also keep charges low. Banks, which will offer this new targeted support, typically only have a limited number of investment products on offer and while that often includes a tracker, they tend to be more pricey than the industry average. • The cheap and easy way to invest (without the risk) As for mortgage lending, as I've written before, there's a fine line between responding to the needs of borrowers and putting them in a difficult position if rates were to take another turn or property prices were to fall. It could be a risky business — but then, never being able to get on the property ladder could be the greatest risk of all. Risk can pay off, but we're walking a tightrope. It's all about getting the balance right.@JohannaMNoble
