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In an interview with CNBC's Becky Quick, Berkshire Hathaway's Chairman and CEO Warren Buffett says he would like to still be invested in Kraft Heinz five to ten years from now, though he thinks that 3G Captial misjudged how competition would evolve in the sector.

Rajeev Saxena, Managing Director of Velocity Capital Advisors, explains why the country needs high-growth tech businesses now more than ever, and why Britain needs investors to back them through the Enterprise Investment Scheme.

With the seemingly interminable Brexit negotiations, you could forgive investors for being more than a little tentative at the moment. However, it has never been more important to back new British companies through investment.

Doing so will give Britain the best chance to thrive going forward, whatever the fallout from Brexit. It will help to bolster the economy when it needs it most and create valuable jobs. Meanwhile, focusing on high-growth tech startups well positioned to thrive in a post-Brexit environment will help drive home-grown innovation across British industry, attract foreign investment and boost exports.

Of course, investors want to minimise risk, but they also want to get the best possible return on their investments. That’s why the Government launched the Enterprise Investment Scheme (EIS). By offering generous tax incentives, EIS reduces investor risk.

Meanwhile, honing the scheme to focus purely on high-growth tech companies, which the Government did last year, maximises investors’ potential returns. It also shows the confidence the Government has in these types of businesses and leaves no doubt as to where they think the future of Britain’s economy lies.

Investing in these companies through EIS enables investors to claim 30% tax relief on investments up to £2m. Plus, they can gain even more by investing through the small number of portfolio funds that also offer carryback, enabling investments to be offset against tax in the previous year.

To reduce risk further, investors should choose high-growth tech startup portfolios with strong performance records. They should select highly innovative businesses with a strong market knowledge that are producing something highly appealing to an international audience so that demand for their products and services will be there, whatever the deal with Europe is.

Any investors sceptical of EIS should take note that it was recently independently assessed as the best tax incentive investment scheme out of the 46 that currently exist across Europe. In fact, countries across the globe are interested to replicate EIS in their own economies.

Investors should also note that SMEs in the UK are bullish about the future, not cowering in the shadow of Brexit. Almost three-quarters (74%) predict revenue growth of more than 20% over the next year. This presents another reason to invest.

Overall in 2018, VC investment in Europe reached £18.9bn, surpassing 2017’s record numbers. Some 31.5% (£6bn) of this was invested in UK startups. This was more than 1.5 times the level invested in fast-growth businesses in Germany, and 2.6 times the levels of investment seen by the startup ecosystem in France. In light of these numbers, it’s not surprising that 600,000 startups launched in the UK last year, more than ever before, despite all the Brexit turmoil.

This shows that Britain is very much open for business and that high-growth startups are flourishing. This is great news for the country and for investors, and it’s vital that it continues through further investment. In short, this is no time for investors to get cold feet. They should back Britain and high-tech startups now.

Founder, Chairman and Co-Chief Investment Officer of Bridgewater Associates Ray Dalio talks to Julia La Roche in 2018 of Yahoo Finance about the value of savings and investing.

Those wishing to invest in property this year need to be aware of the emerging markets and demographics in order to make the best decisions.

Here, you will discover the ultimate real estate investment guide to purchasing property in the year ahead.

Which areas should you focus on?

Not all areas of the UK are facing a tough property market. In fact, some areas are positively thriving. If you want to ensure you are making the right investment, there are certain locations throughout the UK that you should be focusing on.

Birmingham is a key area currently experiencing adequate growth. It is experiencing significant infrastructural developments and has seen a drastic increase in the level of inward investments. It is thought the city is going to witness a 14% growth over the next three years, making 2019 a great time to invest.

Newport in South Wales is another area to consider. Out of all of the UK council areas, the town has been recognised as the 9th largest in terms of increase in house prices. According to local estate agents, there are waiting lists of buyers looking to invest in the area. This means, if you want to invest in Newport, you are going to need to be patient.

Other key areas experiencing a strong property market include Trowbridge in Wiltshire, Northampton, Leeds, Leicester and Coventry.

Which sectors are performing well?

In terms of which sectors to invest in, there are a couple of market trends to pay attention to this year.

Due to economic uncertainty, the rental market is expected to rise significantly over the next year. However, changes in legislation have led to many buy to let landlords pulling out of the market. Further changes set to be introduced in the form of the Tenant Fees Bill on June 1st, 2019, could potentially push more landlords to leave the market. This means, there will be a higher demand for private rental opportunities. Investors who have the funds could therefore significantly profit from buy to let opportunities.

Auctions are also going to play a large role in the property market. Investing in property from an auction house enables investors to potentially snag a bargain. More sellers are likely to turn to auction houses, particularly if they require the funds quickly.

Overall, the property market has proven how resilient it can be in recent years. There may still be a lot of economic uncertainty, but as you can see above, some areas and sectors still remain lucrative to investors.

Amid a shaky marketplace, investors are eyeing the yield curve for signs of economic stability. History shows that when the yield curve inverts, a recession may soon follow.

Market Outlook

Mihir Kapadia, CEO and Founder of Sun Global Investments

When it comes to investment trends, every year appears to have a certain theme which dominates the markets and beyond throughout the course of those twelve months. 2017 was largely a stock market year, with global markets closing at record highs thanks to a booming global growth rate, loose tax and monetary policy, low volatility and ideal currency scenarios (for example, a weaker pound supporting inward investments). It was also a crazy year in the consumer segment with market momentum captivated with crypto assets, leading to established financial services firms to create special cryptocurrency desks to monitor and advise.  Today, things are looking very differently.

Markets have since moved from optimism (led by stock markets) to a cautious tone (with an eye out for safe haven assets). This is largely due to the concerns over slowing global growth rates (especially from powerhouse economies like Germany and China), volatile oil markets and Kratom Powder For Sale induces significant market threats with the likes of Brexit and the trade wars. The rising dollar has also not helped much, with Emerging Market and oil importing economies suffering with current account deficits.

At the World Economic Forum’s annual meeting in Davos last month, the International Monetary Fund (IMF) has warned of the slowdown, blaming the developed world for much of the downgrade and Germany and Italy in particular. While the IMF does not foresee a recession, the risk of a sharper decline in global growth is certainly on the rise.  However, this risk sentiment doesn’t factor in any of the global triggers – a no-deal Brexit leading to UK crashing out of the EU or a greater slowdown in China’s economic output.

While the IMF does not foresee a recession, the risk of a sharper decline in global growth is certainly on the rise.

Volatility expected

 We have lowered earnings expectations globally due to more subdued revenue and margin assumptions. We believe investors will be confronted by increased volatility amid slower global economic growth, trade tensions and changing Federal Reserve policy. Our base case relies on the view that the US may enter a recession in 2020. As the market dropped 9% in December, the worst market return in any 4th Quarter post World War II, many risks are starting to be discounted by the market. We have reduced industrials, basic materials and financials due to heightened risks.

There are a number of factors that are driving this view, but it is important to note that upsides to the risks do exist:

In uncertain markets like these, we should look to do three things: reduce risk, focus on high quality and stay alert for opportunities due to dislocations.

So what do you do?

We have dialled down risk in 2018 and will likely continue to do so in 2019 as we expect global growth to slow. However, the expected volatility could cause dislocations that are not fundamentally driven, resulting in tactical opportunities to consider.

The best piece of advice to be relayed is: “Don’t run for the hills”. In uncertain markets like these, we should look to do three things: reduce risk, focus on high quality and stay alert for opportunities due to dislocations.

It would be ideal to shift allocations from cyclical to secular exposures, especially away from industrials, basic materials, semiconductors and financials due to heightened risks. It would also be ideal to focus on high-quality companies with secular growth opportunities that can generate dividends as well as capital appreciation.

Two sectors stand out as both strategically and tactically attractive - aging demographics and rapidly improving technology are paving the way for robust growth potential in healthcare. Accelerating growth in data, and the need to transmit, protect, and analyse it ever more quickly, make certain areas in technology an attractive secular opportunity as well. Where possible, our advice to investors is to maintain a tactical portion of their risk assets, because volatility may give them the opportunity to find mispriced sectors, themes and individual securities.

Still, in this climate, the bottom line is that you should be increasingly mindful of risk in your portfolio so that you can reach your long-term investment goals. 

Eastern Economies vs. Western Economies: Countries, Sectors and Projects to Watch

Dr. Johnny Hon, Founder & Chairman, The Global Group

The global economic narrative in 2018 was characterised by growing tensions between the US and China, the world’s two largest economies. The US imposed 10% to 25% tariffs on Chinese goods, equivalent to more than $250bn, and China responded in kind.

This had a seismic effect on global economic growth which, according to the IMF, is expected to fall to 3.5% this year. It represents a decline from both the 3.7% rate in 2018 and the initial 3.7% rate forecast for 2019 back in October.

Although relationships between Eastern and Western economies are currently strained, suggestions that a global recession is on the horizon are exaggerated. China’s economy still experienced high growth in 2018.

However, it is clear that trade wars have no winners. The rise of protectionism in the West is creating more insular economies and we are at a time when increased efforts are needed for mutual understanding. There are still enormous opportunities across the globe: India is among several global economies showing sustained high growth, and innovations in emerging markets such as clean energy or payments systems continue to gather pace. Investors who are savvy and businesses with true entrepreneurial flare can triumph at a time when others may be stagnating.

The rise of protectionism in the West is creating more insular economies and we are at a time when increased efforts are needed for mutual understanding.

Here are the exciting countries, sectors and projects to look out for in 2019:

Countries

Recent trends in foreign direct investment (FDI) reveal a growing trend to support developing economies. In the first half of 2018, the share of global FDI to developing countries increased to a record 66%. In fact, half of the top 10 economies to receive FDI were developing countries.

This trend will accelerate in 2019 - the slow economic global growth, and subsequent currency depreciation means the potential yield on emerging market bonds is set to rise dramatically this year. More and more investors are realising the great potential of these developing economies, where the risk versus reward now looks much more attractive than it did in recent years. Asia in particular has benefited from a 2% rise in global FDI, making it the largest recipient region of FDI in the world.

India and China are both huge markets with a combined population of over 2.7 billion, and both feature in the world’s top 20 fastest growing economies. However, the sheer quantity of people doesn’t necessarily mean the countries are an easy target for investment. There are plenty of opportunities in both India and China, but it takes a shrewd investor with a good local business partner to beat the competition and find the right venture.

Other Asian economies to invest in can be found in Southeast Asia, including Vietnam, Singapore, Indonesia and Cambodia. In a recent survey by PwC, CEOs surveyed across the Asia-Pacific region and Greater China named Vietnam as the country most likely to produce the best investment returns – above China.

Investors who are savvy and businesses with true entrepreneurial flare can triumph at a time when others may be stagnating.

Sectors

One sector in particular which remained resilient to the trade wars throughout 2018 was technology. By mid-July, flows into tech funds had already exceeded $20bn, dwarfing the previous record amount of $18.3bn raised in 2017. This was a result of the increased accessibility and popularity of technologies in business.

In the area of Artificial Intelligence (AI) for example, a Deloitte survey of US executives found that 58% had implemented six or more strains of the technology—up from 32% in 2017. This trend is likely to continue in 2019, as more businesses realise AI’s potential to reduce costs, increase business agility and support innovation.

Another sector which saw significant investment last year was pharmaceuticals and BioTech. By October, these had already reached a record high of $14 billion of VC investment in the US alone. One particular area to watch carefully, is the rising demand for products containing Cannabidiol (CBD), a natural chemical component of cannabis and hemp. Considering CBD didn't exist as a product category five years ago, its growth is remarkable. The market is expected to reach $1.91 billion by 2022 as its uses extend across a wide variety of products including oils, lotions, soaps, and beauty goods.

Projects

At a time of rising trade tensions and increased uncertainty, cross-border initiatives are helping to restore and maintain partnerships and reassure global economies. China's Belt and Road Initiative is a great example of how international communities can be brought closer together. From Southeast Asia to Eastern Europe and Africa, the multi-billion dollar network of overland corridors and maritime shipping lanes will include 71 countries once completed, accounting for half the world’s population and a quarter of the world's GDP. It is widely considered to be one of the greatest investment opportunities in decades.

The Polar Silk Road is another international trade initiative currently being explored. The Arctic offers the possibility of a strategic commercial route between Northeast Asia and Northern Europe. This would allow a vast amount of goods to flow between East and West more speedily and more efficiently than ever before. This new route would increase trading options and would make considerable improvements on journey times – cutting 12 days off traditional routes via the Indian Ocean and Suez Canal. It could also save 300 tonnes of fuel, reducing retail costs for both continents.

Since founding The Global Group - a venture capital, angel investment and strategic consultancy firm - over two decades ago, I have seen the global economic landscape change immeasurably. The company is built around the motto ‘bridging the frontiers’, and now more than ever, I believe in the importance of strong cross-border relationships. Rather than continuing to promote notions of protectionism, we must instead explore new ways of achieving mutual benefit and foster a spirit of collaboration.

Brexit, Trade Wars and the Global Economy

Robert Vaudry, Chief Investment Officer at Wesleyan

If there’s one thing that financial markets do not like, it is uncertainty - which is something that we’ve faced in abundance over the last couple of years.

The UK’s decision to leave the European Union and President Trump’s 2016 election in the US, sent shockwaves through markets, and the two years that followed saw increased volatility across asset classes. This year looks set to be fairly unpredictable too, but in my view there are likely to be three main stabilising factors. Firstly, I expect that the UK will secure some form of a Brexit deal with the EU – whatever that may look like – which will give a confidence boost to investors looking to the UK. Secondly, the trade war between America and China should also come to an end with a mutually acceptable agreement that further removes widespread market uncertainty. Thirdly, the ambiguity surrounding the US interest rate policy will abate.

The Brexit bounce

A big question mark remains over whether or not the UK is able to agree a deal with the EU ahead of the 29th March exit deadline. However, with most MPs advocating some sort of deal, it’s highly unlikely that the UK will leave without a formal agreement in place. So, what does this mean? Well, at the moment, it looks more likely than ever that the 29th March deadline will need to be extended, unless some quick cross-party progress is made in Parliament on amendments to Theresa May’s proposed deal. While an extension would require the agreement of all EU member states, this isn’t impossible, especially given that a deal is in the EU’s best interests as the country’s closest trading partner.

The ambiguity surrounding the US interest rate policy will abate.

The result of any form of deal will be a widespread relief that should be immediately visible in the global markets. It will bring greater certainty to investors, even if the specific details of a future trading relationship between the UK and EU still need to be resolved. Recently, it was estimated that Brexit uncertainty has so far resulted in up to $1trn of assets being shifted out of the UK, and I personally don’t see this as an exaggeration. Financial markets have been cautiously factoring Brexit in since the referendum vote in 2016 and, if we can begin to see a light at the end of the Brexit tunnel, it is likely that some of these vast outflows will be reinvested back into the UK. We can also expect to see a rise in confidence among UK-based businesses and consumers, at a time when the unemployment rate in the UK is the lowest it has been since the mid-1970s.

All of these outcomes would help lead to a more buoyant UK economy and the likelihood that UK equities could outperform other equities – and asset classes – in 2019.

Trade wars – a deal on the table?

Looking further afield, the trade tensions that were increasingly evident between the US and China last year could also be defused. The last time that China agreed to a trade deal, it was in a very different economic position – very much an emerging economy, with the developed world readily importing vast quantities of textiles, electronic and manufacturing goods. However, given China’s current position as one of the world’s largest economies, it has drawn criticism from many quarters regarding unfair restrictions placed on foreign companies and alleged transfers of intellectual property.

Either way, global financial markets are eager for Washington and Beijing to reach a mutually agreeable trade deal to help stimulate the growth rates of the world’s two largest economies.

It was estimated that Brexit uncertainty has so far resulted in up to $1trn of assets being shifted out of the UK.

Be kind to the FED

2018 saw an unprecedented spat between the US President and his Head of the Federal Reserve. What began as verbal rhetoric quickly escalated into a full-frontal assault on Jerome Powell, and the markets were unimpressed. With the added uncertainty about the impact of a Democrat-led US House of Representatives, we headed into a perfect storm, and equity markets in particular rolled over in December. Ironically, this reaction, coupled with a data showing that both the US and the global economy are generally slowing down – albeit from a relatively high level – has resulted in a downward revision of any US interest rate rises in 2019. The possibility of up to four US interest rate rises of 25bps each during 2019 is now unlikely – I expect that there will only be one or two rises of the same level.

 Transitioning away from uncertainty

So, in summary, 2019 is set to be another big year for investors.

The recent protracted period of uncertainty has hit the markets hard, but we’ll have a clearer idea of what lies ahead in the coming months, particularly regarding Brexit and hopefully on the US and China’s trade relations too. If so, this greater certainty should pay dividends for investors in the years to come. UK equities are expected to strongly bounce back in 2019, which is a view that goes against the current consensus call.

This rings particularly true when it comes to the property market. Below, Jerald Solis, Business Development and Acquisitions Director at Experience Invest, explains.

Naturally, those looking to purchase a home (or several) in the coming months are speculating what Brexit will mean for real estate as an asset class. And whether you’re a first-time buyer or seasoned investor, keeping a watchful eye on the property trends that are currently shaping the industry will offer a good indication of future prospects.

Importantly, despite doom and gloom predictions from some quarters of the property sector, there is still plenty of evidence to suggest that appetite for bricks and mortar investment remains strong. In December of last year, the average cost of a home rose by 2.2% – the highest monthly growth in prices in 2018. Meanwhile, the total value of the UK’s housing stock reached a record £7.29 trillion in 2018.

So, for those keen to jump on, or move up, the property ladder in 2019, here are a number of the key factors to keep in mind.

Types of real estate investment

There exist a variety of avenues for property investment, and it goes without saying that some will be more suited to a buyer’s circumstances than others.

There exist a variety of avenues for property investment, and it goes without saying that some will be more suited to a buyer’s circumstances than others.

Buy-to-let is a popular option for many, offering the advantage of a monthly rental income alongside prospective growth in the capital value of the property over time. And in line with growing demand for housing across the country, there is an increasing number of specialist Build to Rent (BTR) developments emerging across the country, offering investors a clear path into the lettings market.

In fact, an analysis by Savills released in January revealed that there are now 139,508 BTR homes complete, under construction or in planning across the UK – that’s an increase of 22% over the last year.

Whether a BTR property or simply a house or flat that the buyer intends to rent out, one of the advantages of a buy-to-let investment is the flexibility it offers investors when it comes to leasing options. Of these, the two most prominent are professional single lets and student lets.

Professional single lets can be thought of as the traditional buy-to-let path; it involves renting out a property as a single unit to a working individual or family. The benefits here include consistent and predictable returns (as long as there are adequate allowances in place for costs). What’s more, the process of acquiring a mortgage for the purpose of professional single lets investment is also typically simpler when compared to other types of buy-to-let.

The other popular route is student lets. The student market can be a great way of getting regular income from a property, particularly due to a predictable student cycle that falls in line with the academic calendar. Students generally sign up for a specified length of time, so your returns will generally be predictable.

Where to invest?

Regardless of whether you’re investing in a property for the sole purpose of owning your own home, or using it as part of an investment strategy, it’s vital that buyers are aware of regions that offer the best prospects for capital growth.

For those pursuing the buy-to-let option, the importance here is choosing an area that will attract strong, year-round interest from people looking for accommodation. Key areas to be mindful of are thus popular student cities like Newcastle and Liverpool, as well as hubs that attract young professionals looking for promising job prospects.

For instance, in January of this year data from Your Move revealed that investors in the North are enjoying some of the UK’s highest percentage returns for their investments – with the West Midlands witnessing the largest monthly rent rise at 0.4%.

More generally, property buyers will always want to see their asset appreciate in value as the months and years go by. And while the UK market as a whole has delivered very strong returns in this regard for many decades – average house prices rose by more than £60,000 between 2008 and 2018 – it is worth noting that some markets are growing at a far quicker rate than other.

Identifying up-and-coming markets will help improve the investor’s chances of higher capital growth.

Identifying up-and-coming markets will help improve the investor’s chances of higher capital growth.

How to plan and action investment

It’s good to be aware of certain factors that might potentially preclude a buyer from obtaining the finance he or she needs to secure a property quickly, and without unnecessary hassle.

Property investors should, for instance, be aware of the tightening restrictions on mortgage lending from traditional banks – particularly in light of Brexit uncertainty.

To provide some relief for homebuyers, certain agencies are able to manage the entire buy-to-let investment process from start to finish. These agencies can offer suggestions of where best to invest, while actioning everything on your behalf and managing the investment in the long-term.

And especially when it comes to buying a new-build property, leaving the financing and management in the hands of an experienced agency can be much more convenient than looking after it yourself.

Especially when it comes to buying a new-build property, leaving the financing and management in the hands of an experienced agency can be much more convenient than looking after it yourself.

Looking ahead

Naturally, there are challenges on the horizon as the UK prepares for Brexit. However, bricks and mortar investment options are certainly growing, particularly with councils and developers stepping up housebuilding efforts to cater to rising demand for property.

Being aware of the nuances and advantages of each type of property investment – as well as identifying regions set to undergo strong growth in the coming months and years – will ensure that prospective homebuyers are well-prepared to seize upcoming opportunities in 2019 and beyond.

Below Steve Noble, COO at Ultimate Finance, offers insight into the potential changes ahead and the way these will impact business and financing.

Ongoing Brexit discussions may mean it seems much longer ago, but in November both Houses of Parliament passed legislation to end Bans of Assignment contractual clauses. This is great news that lenders and SMEs will have been celebrating since the announcement was made.

What’s the problem with Bans on Assignment clauses?

Bans on Assignment often blocks the provision of vital funding to SMEs as some financiers are hesitant to supply this where clients and their customers have agreed a contract containing this type of clause. If the financier IS prepared to provide funding, they will either have to find a workaround – such as requesting that the business approaches their customer for consent –or request additional security from the client. Each of these options proves time consuming, incurs unnecessary costs and makes it difficult for clients to obtain invoice finance. Unsurprisingly, this can cause SMEs to either struggle on without the support they need or rely on alternative finance options that aren’t right for their business.

What does the change mean?

This means that from 2019 SMEs will be able to access the funding they need more easily. It’s why I’m welcoming the news that after two previously unsuccessful attempts, Bans on Assignment clauses are now null and void in England, Wales and Northern Ireland. SMEs will therefore be able to assign receivables to invoice finance providers without having to spend time and money seeking consent from customers or trying to find workarounds to these clauses which can make things unnecessarily complex.

The legislation also makes clauses prohibiting a party from determining the value of a receivable and being able to enforce it ineffective. Again, this will increase the appeal of invoice finance for so many SMEs across the country.

Does the regulation impact your business?

Clearly, this is great news for SMEs and funding partners across the country. However, there are still caveats in place which will inevitably frustrate some.

The final point will likely prove the most frustrating, as the current legislation doesn’t change anything for more than 345,900 SMEs in Scotland, leaving them to potentially continue struggling to gain access to vital funding next year.

Hopefully this won’t be a permanent issue however as the Scottish Government may follow in the Central Government’s footsteps and announce similar legislation to ensure SMEs north of the border aren’t at a disadvantage compared to the rest of the UK.

Onwards and upwards

Despite the caveats, the news that Bans on Assignment clauses will soon be a thing of the past is great news for SMEs and lenders alike. This should result in a simplified invoice finance process and therefore more small businesses gaining access to the funding they need to continuing thriving in 2019. If that’s not good news, I don’t know what is.

What are the benefits of having a third-party portfolio manager to manage one’s accounts?

Ron Medley: Whether using a third party or an in-house portfolio manager, a key benefit is having a relationship with the portfolio manager in order to have a communication channel that can provide feedback beyond just the price and the news headlines of the day. The ability to get a view into the investment decision-making process can help provide the necessary feedback to inoculate you from the emotion that only looking at price and headlines can generate. Once you have that feedback, you can achieve certainty of process and peace of mind, given the variety of possible outcomes from the market. As an example of our practice, we use volatility as a factor for investment selection. Our research has shown that the risk/reward of owning lower volatility portfolios has generated a couple percent more return for about the same risk as the market over the last couple decades. We construct portfolios that are dynamic in their ability to adapt when unexpected things happen in the market and we can also build custom variations of this approach, which are unique to each client. Generally, once clients learn about how we implement the investment process and experience owning a portfolio constructed and managed this way, emotional energy can be channeled toward much more productive areas.

Our research has shown that the risk/reward of owning lower volatility portfolios has generated a couple percent more return for about the same risk as the market over the last couple decades.

What mechanisms do you use when identifying risks and opportunities for MSAM’s clients?

Ron Medley: What’s most important here is the ‘What, Why and How’ for the client: What are your beliefs and your mission? ; Why are we doing this? ; How do we tap into the positive emotion that is driving you and help you step toward making your vision reality? We listen first. And then we work to understand how we can help provide clarity to help turn those emotions, concerns and goals into positive actions.

What sets your firm apart from other asset management companies?

Chris Pelley: There are almost one million investment advisers around the world. We all look about the same and most people aren’t entirely sure what we’re talking about or how to differentiate us. But we all have three deliverables as follows:

At MSAM, we add a special fourth dimension that is often the primary focus on enhancing our client relationships. We are very mindful about making useful ‘connections’ that can help our friends’ companies, careers, children and charities. We believe that the way people invest their time is even more important than the way they invest their money. We open doors that enhance the quality of their lives. They reciprocate for us too.

What are some of the challenges that investment advisers in the US have been facing over the past year in relation to changes in what customers expect in terms of products and services?

Ron Medley: We have an overabundance of investment products - there are as many funds as there are stocks they invest in, and this is not only because of the proliferation of funds and ETFs. There are also less companies going public. Although the value of the market as a whole has grown, the US market had almost twice as many public companies 20 years ago. More and more, it seems investment capital is chasing companies long before they are accessible in the public markets. Historically, over the last century, small companies offered a 3%+ return premium over large companies. But with less small companies being public, we have to find more ways to access quality small companies. Alternatives, as an asset class, have attracted a lot of investable assets and are projected to become 15% of the investable universe by 2025, a recent PwC study has shown. We’ve invested a lot of energy in developing ways to allocate to alternative asset classes, such as private equity for example, in order to continue to broaden our access to the investable universe for clients.

Alternatives, as an asset class, have attracted a lot of investable assets and are projected to become 15% of the investable universe by 2025,

What strategies do you implement to ensure that your clients’ goals and objectives are achieved?

Ron Medley: We’ve got a full toolbox to work with, but it’s all about the journey, not the destination. We follow a structured process that has certainty in its steps, use a variety of solutions, enabling and advocating client significance in purpose and making useful connections, and we work to focus client conversations in areas that will help them have the greatest impact. Through a culture of continual discovery, we make adjustments as necessary, given whatever changes life or markets bring.

Additionally, investing is not just about risk/return – it’s also about innovation, impact and purpose. When we have built a trusted relationship with a client, worked together to position a portfolio overall to take care of a client’s financial planning needs and move conversations toward fulfilling the client’s greatest purpose, I know we are on the right track. We are happy to play whatever small part we can in helping our clients change the world for the better, one trusted relationship at a time. And it all begins with a conversation.

What two or three things would you look for in an adviser if you were seeking one?

Ron Medley: Trust and a willingness to invest in the relationship to create it. I’d also want to know that they weren’t going to waste my time with a bunch of product features and benefits without a depth of expertise in the approach and the process. I’d also like to be in the hands of professionals who experience both the up and down sides of the market, and who prepare themselves for the uncertainties, instead of just reacting to whatever crosses their path.

Finally, I’d like to know that we could learn from one another and make each other better. We’re only as good as the quality of the team we surround ourselves with.

 

Ron Medley has a passion for building custom investment portfolios - he works with advisers and clients to build, manage, protect and transfer wealth. As the President of Moloney Securities Asset Management (MSAM), Ron leads a team of over 50 independent advisers who provide wealth management services to clients primarily in the US, with some international exposure. Ron joined the Moloney Securities family of companies in 1999, after working for a mutual fund company and an insurance company in the 1990s

MSAM is a registered investment adviser, affiliated with Moloney Securities Company, Inc., a broker/dealer. Headquartered in St. Louis, MO, MSAM has a correspondent relationship with the Royal Bank of Canada (RBC) and has advisers across the US operating as MSAM or affiliated entities.

Chris Pelley, Managing Director of the Pelley Group, has been in the financial services industry for over 30 years and has a passion for helping investors make better decisions. He’s spent over 11 years working abroad for world-class financial institutions including Shearson Lehman Hutton where he specialised in retirement planning for corporate executives in NYC. In 1994, Chris founded Capital Investment Management Company (CIMCO), with the goal of offering clients independent investment advice. In 2014, he joined RBC Wealth Management and chose to affiliate with MSAM as an independent adviser in 2016.

For more information, please visit: https://www.msam.net/ and https://pelleygroup.com/

Experts at Bondora have uncovered the private investments of professional footballers across four countries.

Whether sports cars or SUVs, mansions by the lake or penthouse flats: the following research analyses the lifestyle of the highest-paid national football players on the basis of their salary, properties and vehicles, and compares these with the salary, vehicle and property value of the average citizen.

Table: Information on the annual income, property value, car model and car value of the British national team

  Team Salary Car Type Car House
Jordan Pickford Everton F.C. £4,381,103 Mercedes-Benz C220 AMG Sport £50,707 £2,129,703
Kyle Walker Manchester City £6,328,261 Lamborghini Huracan £284,872 £2,535,361
John Stones Manchester City £4,867,893 Mini Cooper £37,118 £3,549,505
Phil Jones Manchester United £2,920,736 Range Rover SVAutobiography £172,405 £5,070,722
Marcus Rashford Manchester United £2,433,946 Mercedes CLA 45 coupe £60,849 £2,028,289
Jesse Lingard Manchester United £4,867,893 Bentley Continental GT £202,829 £3,042,433
Jordan Henderson Liverpool F.C. £5,354,682 Audi RS7 £85,675 £2,028,289
Dele Alli Tottenham Hotspur £3,650,920 Rolls-Royce £373,471 £2,086,010
Ashley Young Manchester United £5,354,682 Bentley Continental GT £170,275 £12,169,732
Harry Kane Tottenham Hotspur £9,735,785 Continental GT Supersports £213,989 £7,873,177
Raheem Sterling Manchester City £8,518,812 Bentley Bentayga £137,924 £3,143,847

 

Table: Information on the annual income, car value and property value of the average UK citizen and Football player

Country Yearly Salary Average Car Average House
UK citizen £38,000 £18,000 £318,543
Football player £4,435,00 £142,000 £3,795,000

 

The top earners among the England national team are Harry Kane and Raheem Sterling, earning £9,735,785 from Tottenham Hotspur and £8,518,812 from Manchester City respectively - 95.9% more than the average UK citizen.

Despite Ashley Young having the smallest net worth from the Top 10 list, £6.23 million, his house is the most expensive. With a price tag of over £12 million, it’s forty times the property value of the average UK citizen.

The second most expensive house is owned by Phil Jones, right-defense for Manchester United. His home set him back a hefty £5 million - almost twice his annual salary.

Dele Alli from Tottenham Hotspur owns the most expensive car, a Rolls Royce worth over £370,000. However, the centre-right midfield player has one of the cheaper homes out of the Top 10 list, valued at just over £2 million. It’s 17% of the price of Ashley Young’s property, but almost seven times more expensive than the home of an average UK citizen.

Compared to his net worth of almost £49 million, John Stones from Manchester City has a fairly modest car. The centre defence player owns a Mini Cooper just double the price of a car owned by the average UK citizen.

The lowest paid star from the Top 10 is Marcus Rashford, earning £2,433,946 per annum. His property set him back just over £2 million, 83% of his annual salary. His car, a Mercedes CLA 45 Coupe, may be just 2.5% of his annual salary, but is over nine times the price of a car owned by the average UK citizen.

(Source: Bondora)

The comments from Ian McLeod of Thomas Crown Art, follow growing concerns that the global economy is likely to experience a significant slowdown before the end of 2019.

Leading economic indicators tracked by the OECD have weakened since the start of the year and suggest slower expansion over the next six to nine months.

Similarly, the wider global expansion that began roughly two years ago has plateaued and become less balanced, according to the International Monetary Fund.

Mr McLeod observes: “There’s a growing list of investment tailwinds to consider for 2019. These include significant trade tensions, rising interest rates, political uncertainties, including Brexit, and complacent financial markets.

“The US, the world’s largest economy, has, of course, considerable influence on Asian and European economies. As such, should ther US stock market plunge – as it did recently scrapping all of its 2018 gains during a major sell-off - global markets are vulnerable too.”

He continues: “Against this backdrop, we can expect cryptocurrencies will increasingly be seen as investors’ ‘safe havens’ in 2019 and beyond.

“When the downside of the economy hits, digital assets cryptocurrencies like Bitcoin and Ethereum are likely to be viewed by investors as a robust means of storing wealth, in the same way they do with gold.”

Mr McLeod adds: “There are several keys reasons why the likes of Bitcoin and Ethereum will be safe havens. These include scarcity, because there’s a limited supply; permanence, they don’t face any decay or deterioration that erode their value; and future demand certainty as mass adoption of cryptocurrencies and blockchain, the technology that underpins them, takes hold globally.”

Of this latter point, he comments: “As mainstream adoption is going to dramatically gain momentum in 2019 as the world, especially business, realise ever-more uses for and value of crypto and blockchain.

“Ethereum’s blockchain, for instance, is used in our art business. It has allowed us to create a system to use artworks as a literal store of value; it becomes a cryptocurrency wallet.

“It also solves authenticity and provenance issues – essential in the world of art. All our works of art are logged on the Ethereum’s blockchain with a unique ‘smART’ contract.”

The tech expert concludes: “We are some way off from cryptocurrencies replacing the Swiss Franc, the Japanese Yen or gold as the preferred safe haven assets.

“However, as the world moves from fiat money to digital, and as adoption of crypto picks up, there can be no doubt that cryptocurrencies will be firmly in the pantheon of safe haven assets within in the next decade.”

(Source: Thomas Crown Art)

Of course, there's the deposit, mortgage payments and estate agents fees to think about, but what about finding out the boiler is broken once you move in? Or realising you need to pay just shy of £1,000 for a homebuyer's report? Once you add moving day costs, like hiring a van and buying sturdy cardboard boxes, it really does all add up.

So, before you get carried away putting in an offer on a home that could leave you out of pocket, here are five hidden costs first-time buyers should be aware of. And, if you want to find out exactly how much your new home could cost you, use Totally Money's new interactive home buying tool.

  1. Stamp duty land tax

Stamp duty isn’t a problem for everyone – homes under £125,000 won’t incur it, and prices up to £500,000 for first-time buyers will be reduced or negated. But if you’re buying a more expensive home, or not your first, it can cost tens of thousands of pounds.

  1. Fixing leaks, cracks and rewiring electrics

Small faults with a property are easy to overlook when you’re buying it. But once you’re in, it’s natural to want to get the place just right – but with average costs of £180 for fixing leaks and cracks, and as much as £2,750 for rewiring electrics, it can be a real shock.

  1. Homebuyer's report

Even if you don’t want a full building survey, a homebuyer’s report can identify a lot of potential issues with a property – but it’ll still put you out a massive £786 on average.

  1. Solicitor costs

When buying your home with the help of a solicitor, their costs can be between £850 - £1,500, which is a sizeable fee to pay as you enter your new property.

  1. Moving day costs

Boxes, a removals company to help you pack up and shift your stuff, taking a day off work unpaid to wait for the broadband to be installed, moving day costs can often the most hidden of all. Plan ahead by asking family and friends to help you move, or buying boxes in bulk, and you could save yourself a small fortune.

Joe Gardiner, TotallyMoney’s Head of Brand and Communications, comments: “Buying your first home is an exciting step in your life, but it’s also an expensive one – and often more expensive than you initially estimate. We conducted this research to help first-time buyers make sure they are aware of all potential costs before they have to pay them.”

(Source: TotallyMoney)

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