Month: December 2018

FinanceFunds

Young people suffer more with gift guilt at Christmas

Christmas is a time of giving, with the UK spending 821 million pounds on Christmas gifts, it is clear that us Brits are extremely generous. However, worryingly one in four Brits feel pressured to spend a lot more than they can afford, sliding them into debt that can last months after the festive season is over. A truly unwanted Christmas gift.

The research conducted by Peachy, surveyed 2002 people’s Christmas shopping habits and attitudes towards money; lifting the lid on the subtle differences between those of a different gender, age and relationship status. Financial woes are expected to affect a quarter (25%) of Britons due to a costly and pressurising Christmas new research suggests. To ease financial worries and enjoy celebrating the festive season Katre Kaarenperk-Vanatoa from Peachy suggests:
“If you haven’t planned your Christmas costs ahead, you’re left to buy all your gifts in one month. In these circumstances, try to shop wisely by sticking to a budget and creating a gift list. Do not compare your gifts to others and remember that it is sentiment that counts not the price. Sometimes, handmade gifts are more greatly appreciated than expensive gadgets.
Ideally, spread the costs of Christmas shopping as much as possible without adding interest to your financial worries in the New Year”

The research also showed that men spend more money than women, however, men believe they spend too much. Despite this, men still continue to shop at a higher budget. Overall the majority of men (66%) felt relaxed when browsing and buying gifts for their loved ones, felt less pressured to buy a more expensive gift and found it less challenging to stick to a set budget compared to women who were significantly more stressed and less money conscious despite on average spending less of their wages on Christmas gifts than men.

40% of 18-24 year old’s fretted about what others had bought them for Christmas and felt guilty if others had spent more on gifts than they had. Despite this, other age groups (35-44 and 55+) spent more of their wages on Christmas presents in contrast to 18-24 year old’s. Interestingly, 24% of 18-24 year old’s admit to poor budgeting at Christmas time despite 29% feeling the financial pinch in January and struggling with finances. Those 55 years old and over old found Christmas shopping too hectic and only 29% wished they could spend more on Christmas gifts.

Single people find it more difficult to budget and felt that they could not spend as much as they would like on presents in comparison to those in relationships. The study also highlighted that married couples do not enjoy spending time with their loved ones as much single individuals, people in relationships and partners that live together over the festive season. Which could perhaps be to do with the contestant chore of fraternising with your in-laws over the Christmas period! Arguably another unwanted Christmas gift!

FundsGlobal ComplianceTransactional and Investment Banking

The rise of renewable energy

You can’t deny that businesses around the world have taken a greater focus on sustainability — and although this has been damaging for some companies, it has been a great shift for others. One prime example of this is the renewable energy sector; while traditional energy markets are faltering and facing a challenging road ahead, the renewables sector is breaking records.

Although a lot of markets rely on natural resources to operate, the renewables industry use resources that naturally replenish. Collected under the umbrella term of renewables is solar, wind and wave power, alongside biomass and biofuels.

As the market continues to grow, HTL Group, specialists in controlled bolting for the wind energy sector, analyses where the renewables sector is at now:

The market’s performance

The recent years have been successful for the renewables sector. In 2016, 138 gigawatts (GW) of renewable capacity was created, showing an 8% increase on 2015, when 128 GW was added.

Occupying 55% market share and using 138 GW of power, the renewable energy sector is in the lead. Following in second place, coal created 54 GW of power-generating capacity, while gas created 37 GW and nuclear created 10 GW.

Renewables’ huge contribution to the global power-generating capacity accounted for 55% of 2016’s electricity generation capacity and 17% of the total global power capacity, increasing from 15% in 2015.

Research released by the UNEP highlighted that the renewable sector prevented 1.7 billion tonnes of CO2 in 2016 alone. Based on the 39.9 billion tonnes of CO2 that was released in 2016, the figure would have been 4% higher without the availability of renewable energy sources.

Renewable market investment

Regardless of the continued growth of the sector, investments actually decreased in 2016. In 2016, $242 billion was invested in the sector, showing a 23% decrease on 2015’s figures. This reduction can largely be attributed to the falling cost of technology in each sector.

However, this could be down to the alterations made to markets on a country-specific basis. In 2016, Europe was the only region to see an increase in investment in the renewables sector, rising 3% on 2015’s figures to reach $60 billion. This performance is largely driven by the region’s offshore wind projects, which accounted for $26 billion of the total, increasing by over 50% on 2015’s figures.

Across Norway, Sweden, Denmark and Belgium, investment seems to be strong. UK investment slipped by 1% on the previous year, while Germany’s investment dropped by 14%.

Believe it or not, investments made from China decreased from 2015’s $78 billion to $37 billion. Investment from developing nations also dropped in 2016 to a total of $117 billion, down from $167 billion in 2015. In 2016, investment had almost levelled out between developed and developing countries ($125 billion vs $117 billion).

What does the future look like?

With greater developments, the future looks bright for the renewable sector. From the falling cost of technology to societal shifts like the 2040 ban to prevent the sale of new petrol- and diesel-fuelled cars, the future certainly looks positive for the sector — even if investment has declined in the past year.

In the future, it is inevitable that the sector will overtake more traditional markets on a global scale, revolutionising how we generate and consume energy.

This article was provided by HTL Group, hydraulic torque wrench suppliers.

Issues

Issue 12 2018

Welcome to the twelfth issue of Wealth & Finance International Magazine, which is dedicated to providing fund managers, institutional and private investors with the very latest industry news in the traditional and alternative investment landscapes. This month we take a look and investment and wealth managers who have, simply, done things differently than their peers and competitors. In this challenging economic environment, doing things differently is certainly a risk – avoiding the well-worn path in favour of new pastures. Yet, for the firms included in this month’s issue, these risks have yielded strong results for their clients and company alike.

First up is RPG Wealth, a firm that understands the important of independent, and personalised financial planning advice. Not content to sit still or rest on their laurels, RPG Wealth’s ethos lies in continual improvement and client-centric services. We spoke with John Sangster, RPG’s Head of Investment Research, to find out more about their work.

Also in the issue, Ann Spickett of Total Accounting Kent Ltd writes about how technology has helped spearhead her company’s growth. Equally, as accountancy experts, they are well-placed to make sure that their clients remain up-to-date on incoming regulation changes, as well as guiding businesses to a more secure financial future.

Finally, we spoke with Steve Dabbah, Principal of Bedrock Advisers LLC in New York. Named as the ‘Best Commodity Trading Adviser’ in Wealth & Finance International’s Alternative Investment programme, we were eager to find out more about their best in class investment management solutions.

Here at Wealth & Finance we sincerely hope that you enjoy reading this month’s issue and look forward to hearing from you.

Laura Brookes | Editor

ArticlesCorporate Finance and M&A/DealsFunds of Funds

5 ways cognitive assistants are revolutionising banking

Martin Linstrom, Managing Director for UK and Ireland at IPsoft, looks at the next stage in technological evolution of the banking industry and how artificial intelligence (AI) will redefine banking as we know it.

 

The banking industry has made huge strides to drive innovation by investing in new technologies over the last few decades. Commercial banks first adopted telephone banking, then came internet banking and now, for most customers, all your financial services needs can be met via an app. Now, as we enter the conversational era enabled by cognitive AI, customer expectations have evolved once again.

 

Banks have long been ahead of the curve in terms of elevating the user experience for their customers and so, it’s perhaps unsurprising that many are already looking to AI-powered digital assistants and are investing in cognitive solutions to upgrade and scale customer-facing financial management processes. Many banks are also looking at how they can provide the same simple, frictionless service to their own employees. 

 

As AI-powered customer interfaces gain mainstream acceptance, we will once again see a revolution in technological change within the banking industry. So, what functions within banks will cognitive assistants transform?

 

Building a hybrid workforce

Virtual assistants have a twofold capability which is driving innovation in the banking industry. Firstly, they can be implemented in back office functions such as finance or HR and secondly, they can supplement customer service centres. Creating a hybrid workforce of human employees and AI-powered virtual assistants can help drive enormous cost efficiencies and increase staff productivity. Employees in administrative roles can pass their repetitive tasks over to their digital colleague, freeing up their time to focus on more creative or interesting work that requires soft skills whilst customer service agents can pass standard requests through an AI system leaving them with only the most complex of customer queries to deal with.

 

Ubiquitous customer services

One of the most attractive things about AI-powered customer services for banks is its ubiquity. With virtual customer service agents available 24/7 and through a variety of channels such as live message, telephone or email, it’s a win-win situation for both bank staff and customers. From a customer’s perspective, simple requests such as password resets or international transactions can be performed in an instant and there’s no need to visit the bank or spend an hour in a telephone queue to speak to a human agent.

 

Banks adopting customer-facing AI solutions are in fact seeing increased customer satisfaction rates despite removing the human-to-human contact element. For example, since implementing IPsoft’s AI solution, Amelia, SEB, a leading Nordic bank has been able to avoid 544 hours of escalations to customer support with an average handle time of six minutes. What’s more, Amelia has reached an 85% accuracy in immediate intent recognition which has meant a faster service delivery to customers and soaring customer satisfaction. 

 

24/7 banking support

Unlike human agents, digital assistants can work around the clock, seven days a week with no breaks and without tiring. For modern consumers, particularly young digital natives who expect to be able to manage their finances at any time of the day, integrating AI into a bank’s customer service centre will soon become the norm. Chatbots are already an industry standard, therefore at the very least, banks that don’t continue scaling this technology throughout their business will find themselves at a severe competitive disadvantage, trailing behind the market by delivering an inferior customer service experience.

 

Go beyond simple chatbots

Digital assistants with cognitive intelligence capabilities represent the next leap in automation for financial institutions. Digital colleagues like Amelia are now able to perform tasks above and beyond mere transactional ones, digitising more complex financial management processes such as wealth management onboarding and mortgage applications. Unlike simple chatbots, digital colleagues are also able to develop their cognitive abilities through an advanced Natural Language Interface (NLI) which can process customer queries asked in hundreds of different ways, including slang. More importantly for the banking industry, they can handle context switching so that when a customer moves quickly from one request to another, the interface is able to process both requests without starting over.

 

Many banks have already integrated voice capabilities into their finance management solutions. Customers communicate via text or voice to gain quick answers to banking questions, tailored financial advice and can even carry out transactions all from the same channel. Voice-enabled digital assistants can handle payments and transfers, credit card activation, charge disputes and travel alerts for customers at any time, freeing up customer services teams to focus on more complex customer enquiries and giving customers full control and access to their finances. Conversational AI will become more and more widely accepted as banks start to harness the technology to help drive customer engagement and operational efficiencies.

 

Delivering better insights and improved security

Unlocking key business insights is another key driver motivating banks to invest in AI. Sophisticated systems can recognise patterns from the sheer amount of data that they are processing. Thanks to these capabilities, businesses can easily find out the most common types of transactions by customers of a certain demographic and can then retarget this group for specific marketing or sales campaigns, helping to drive revenue. These real time insights can help business leaders make better, more strategic decisions that are informed through concrete data.

 

Real-time data mining can also be applied to improve customer security as many AI tools have built-in privacy and security by design. An AI-powered virtual assistant can pick up on irregular payments immediately, flagging potential “phishers” to a human agent for additional authentication. What’s more, advanced machine learning solutions can improve over time so that banks can continue to scale up their services. Virtual assistants like Amelia can go one step further by ‘learning on the job.’ Essentially, when Amelia does not understand a request or query she can pass it on to a human colleague but remains in the conversation to learn how to resolve the issue next time.

 

The future of retail banking

The financial services industry has long been at the forefront of technological innovation. Whilst many businesses are still debating whether to invest in AI, major banks are very much leading the way to invest in the technology and are thriving as a result. As virtual assistants become increasingly more intelligent and their cognitive abilities develop, the expectations for banks and the services they offer will be elevated. Banks that rest on their laurels and refuse to acknowledge this risk falling behind permanently, particularly with the slew of challenger fintech companies that are appearing on the market, offering dynamic and tailored financial services at a lower price. 

 

 

Press releases

The 2018 Finance Awards Press Release

Wealth & Finance Magazine Announces the 2018 Finance Awards Winners

United Kingdom, 2018- Wealth & Finance magazine have announced the winners of the 2018 Finance Awards.

The finance industry is a key driver of the global economy. From asset managers through to bankers, investment advisors to software developers, the Finance Awards are dedicated to supporting and recognising these talented and dedicated firms, individuals and departments.

Running annually since 2015, the Finance awards is a prestigious program. It is a badge of honour, a stamp of excellence, and all of our award winners are part of an exclusive and illustrious group comprising of some of the most influential names in the financial market.

Discussing the outcome of the programme, Laura Hunter, Awards Coordinator commented: “With finance being the backbone of the entire corporate landscape, it is with great pride that I showcase the markets greatest, most dedicated businesses and individuals through this awards programme. All of my winners deserve huge congratulations, and I wish them the very best of luck for the future.”

To learn more about our deserving award winners and to gain insight into the working practices of the “best of the best”, please visit the Wealth & Finance website (http://www.wealthandfinance-news.com/) where you can access the winners supplement.

ENDS

Notes to editors.

About Wealth & Finance International

Wealth & Finance International is a monthly publication dedicated to delivering high quality informative and up-to-the-minute global business content. It is published by AI Global Media Ltd, a publishing house that has reinvigorated corporate finance news and reporting.

Developed by a highly skilled team of writers, editors, business insiders and regional industry experts, Wealth & Finance International reports from every corner of the globe to give readers the inside track on the need-to-know news and issues affecting banking, finance, regulation, risk and wealth management in their region.

Cash ManagementRisk Management

Why Are Investor Relations So Important?

Following the implementation of GDPR, consumers, investors and businesses around the world are becoming increasingly aware of every communication they receive from a company.

As such, compliance, in all its forms, is now even more important to businesses than ever before, and in the financial and investment space this is as vital as it always has been, if not more so. Whilst it has always been crucial to success in the investment market, now compliance, and assuring investors of compliance, has been bought to the fore.

For example, the recent announcement that the UK Government is suspending its Tier-One Investment Visa Programme, with a view to making important changes to this to combat the risk of money laundering. Bruno L’ecuyer, Chief Executive Officer of the Investment Migration Council, made the below comment on the changes and how these would affect investors.

“The UK government may not have much influence with the European Parliament these days, but it has provided an object lesson in how to manage investor migration sensibly and for the benefit of its citizens.

“According to reports, potential investors will have to agree to undergoing a thorough audit of their financial assets, proving they have control of the required capital for at least two years, and will require audits to be undertaken by suitably regulated UK firms.

“Most notably, it appears the UK government recognises the value of investment migration and desires any investment made by individuals to have a greater impact on the UK economy, which is why it is apparently looking at scrapping its own government bond option in favour of directing investment into active and trading UK companies.”

As Bruno highlights, the importance of audits and transparency in this space is as vital as ever, and firms need to be able to prove to both their investors and the authorities that they are acting properly and are fully compliant with all relevant regulations to ensure their continued success.

This is why investor relations have, over recent years, become a vital aspect of any company, fund or asset manager. Many multinational companies, such as Hitachi, Etsy and the Coca Cola Company all operate their own investor relations departments, showcasing the increasing focus companies are putting on the role.

After all, as client satisfaction and feedback become buzzwords within the corporate space, it makes sense that investor relations should also increase in importance, and many companies and investors are now embracing this side of their business. Through strong communication and specialist support, companies, investors and fund managers can ensure that their investors remain on-side and that they understand that their money is in safe hands.

Press releases

The 2018 Investment Fund Awards Press Release

Wealth & Finance Magazine Announces the Fund Awards 2018

United Kingdom, 2018- Wealth & Finance magazine have announced the winners of the Fund Awards 2018.

As disposable income rises among many emerging and established economies worldwide, increasing numbers of individuals are exploring investment in funds to prolong the life of their hard-earned wealth.

Therefore, service providers and fund managers are having to work even harder to provide their clients with the services they need and ensure that they remain competitive in this booming market. At Wealth & Finance International, we firmly believe that these firms, and the individuals driving them, should be recognised and rewarded for their hard work and diligence.

From pensions to ETFs, managers to service providers and everyone in between, the Fund Awards 2018 showcases the very best of the best from around the world and across this vital sector.

Discussing the outcome of the programme, Laura Hunter, Awards Coordinator commented: “This award programme acknowledges and rewards those who work tirelessly to provide their customers with the very highest standards of service and support in the funds market. I am proud to be able to highlight the success of this unique and deserving firms, and I would like to wish all of my winners the very best of luck for the future.”

To learn more about our deserving award winners and to gain insight into the working practices of the “best of the best”, please visit the Wealth & Finance website (http://www.wealthandfinance-news.com/) where you can access the winners supplement.

ENDS

Notes to editors.

About Wealth & Finance International

Wealth & Finance International is a monthly publication dedicated to delivering high quality informative and up-to-the-minute global business content. It is published by AI Global Media Ltd, a publishing house that has reinvigorated corporate finance news and reporting.

Developed by a highly skilled team of writers, editors, business insiders and regional industry experts, Wealth & Finance International reports from every corner of the globe to give readers the inside track on the need-to-know news and issues affecting banking, finance, regulation, risk and wealth management in their region.

Cash ManagementFinanceFunds of FundsHedgeWealth Management

BUY YOURSELF A HORSE WITH BITCOIN

Equinox Racing is a London based horse racing syndicate like no other. Focused on delivering immersive experience to its members, Equinox Racing recently opened its horse’s shares to cryptocurrency. From now on, you can use your Bitcoins to buy yourself the thrill of horse racing and the privilege of horse ownership.

 

Rob Edwards, co-founder of Equinox Racing, commented: “There is a huge amount of capital in the crypto world, and not too many tangible opportunities out there. A lot of the people who invested in crypto, particularly in the early days, are punters. They are our kind of people!” 

 

Equinox Racing believes horse racing should not be limited to the chosen few but made available to enthusiasts and new audiences on a wider scale. Having nine horses and about 100 club members and owners to date, Equinox Racing offers a range of exciting experiences. Visit your horse at the stables, speak with the trainer and the jockey, follow his evolution on social media and support him at the race!

 

D Millard from Norwich, Norfolk (horse owner), commented: “Equinox Racing delivers fantastic days out, real prize money winning opportunities, and its stable of horses just continues to grow.” 

 

For the equivalent of £34,99 per month in crypto, which is the average price for gym memberships, Equinox Racing enables you to be part of something greater than a pair of weights. And ownership is available from £150 pounds (in crypto as well)! Thrill, suspense, joy, grace, excitement, exclusivity, are the words that describe the emotions experienced during a horse race.

 

J MacLeod from Ayr (horse owner) commented: “Simply amazing.  My passion for racing has grown now that I have affordable ownership.  I never thought I would be able to own any part of a horse with such a stunning pedigree.” 

 

Equinox Racing is currently expanding its horse’s portfolio and looking at new acquisitions. It is now the perfect time to get involved!

 

More information on: https://equinox-racing.co.uk

BankingFinanceFundsWealth Management

WisdomTree launches Artificial Intelligence ETF (WTAI)

WisdomTree, the exchange traded fund (“ETF”) and exchange traded product (“ETP”) sponsor, has partnered with Nasdaq and the Consumer Technology Association (CTA) to launch an ETF providing unique exposure to the Artificial Intelligence (AI) sector. The WisdomTree Artificial Intelligence UCITS ETF listed on the London Stock Exchange today, with a total expense ratio (TER) of 0.40%.

 

The ETF will provide investors with liquid and cost-effective access to this exponential technology megatrend that is driving efficiencies and new business capabilities across all industries globally and redefining the way we live and work.

 

Christopher Gannatti, WisdomTree Head of Research in Europe says, “We are delighted to partner with Nasdaq and CTA, who are experts in AI and technology markets. We have worked together, leveraging our combined expertise, to re-define the AI investment landscape.”

 

“To capture the full economic value of AI we place companies in three categories; Engagers, Enablers and Enhancers*. When investors think of what this can bring to a portfolio, they should be thinking over a long time horizon and about how advances like autonomously driven cars, a digital workforce, mass facial recognition and other applications of intelligent machines could change the world,” Gannatti added.

 

Rafi Aviav, WisdomTree Head of Product Development in Europe comments, “AI is a revolutionary technology and the market for AI products and services is expected to more than triple over the next three years[1]. This fund offers a unique approach to capturing this expected growth, which is the result of a year-long collaboration between WisdomTree, Nasdaq and CTA.”

 

“The fund broadly represents the upstream[2] and midstream[3] parts of the AI value chain and so balances diversification with a focused exposure on those parts of the AI value chain that stand to gain the most from growth in the AI market,” Aviav added.

 

There is no commonly used classification system that allows one to automatically choose companies engaged in the emerging AI space, so the research for the selection of index portfolio companies is conducted by experts with deep familiarity of the AI value chain and the technology markets more broadly. This ensures the portfolio remains focused on AI opportunities rather than becoming just another broad tech fund.

 

We believe the fund’s unique approach offers the best of both the active and passive investment worlds in accessing the AI megatrend. The fund’s portfolio companies are already capitalising on the AI opportunity across industries and are well positioned for AI’s growth,” Aviav commented.

 

“AI is one of the key ‘ingredient technologies’ over the next decade – deployed everywhere from factory floors and retail stores to banks and insurance offices, creating new opportunities,” said Jack Cutts, senior director of business intelligence and research, CTA. “We’ll see this play out in January at CES® 2019 – the most influential tech event in the world – where AI will be a dominant theme, showcasing the massive potential AI has to change our lives for the better. We’re excited to partner with Nasdaq and WisdomTree to make AI investible.”

 

“Artificial Intelligence is at an inflection point to drive further economic growth and create new areas of opportunity,” said Dave Gedeon, Vice President and Head of Research and Development for Nasdaq Global Indexes.  “The Nasdaq CTA Artificial Intelligence Index serves as an important benchmark for tracking the adoption of AI across a broad range of economic sectors as this influential technology hastens advancements in productivity and capacity.”

 

WisdomTree Artificial Intelligence UCITS ETF: Under the hood

The WisdomTree Artificial Intelligence UCITS ETF tracks the Nasdaq CTA Artificial Intelligence Index.  This enables investors to gain diversified exposure which is focused on companies that stand to gain the most from growth in AI adoption and performance. The index can evolve as new AI trends and companies come on stream through a semi-annual update. The Index is currently comprised of 52 constituents globally with stringent eligibility criteria:

  • Define Universe: Companies must be listed on a set of recognized global stock exchanges and satisfy minimum liquidity criteria and market capitalization criteria to be included in the index.
  • Identify and Classify: Companies are identified as belonging to the AI value

chain and classified into the following categories: Enhancers, Enables and Engagers (see below for definitions.)

  • Determine AI Exposure: The AI exposure for each individual stock is investigated and scored.
  • Top Selection: Only companies with the top 15 scores in each category (Enhancers, Enablers and Engagers) are selected for inclusion, and their weight is allocated evenly in each category.
  • Allocate Weight: In total Engagers comprise 50% of index exposure, Enablers comprise 40%, and Enhancers comprise 10% of index exposure.

*Engagers: Companies whose focus is providing AI-powered products & services.

Enablers: Companies who are key players in this space, with some of their core products and services enabling AI. They include component manufacturers (including relevant CPUs, GPUs etc.), and platform and algorithm providers that power the development and running of AI processes.

Enhancers: Companies who are a prominent force in AI but whose relevant product or service is not currently a core part of their revenue. They include chip manufacturers, and platform and algorithm providers that power the development and running of AI-powered products & services.

 

Share Class Name

TER

Exchange

Trading Ccy

Exchange Code

ISIN

WisdomTree Artificial Intelligence UCITS ETF – USD Acc

0.40%

 

LSE

USD

WTAI

IE00BDVPNG13

WisdomTree Artificial Intelligence UCITS ETF – USD Acc

0.40%

 

LSE

GBx

INTL

IE00BDVPNG13