National Savings & Investments is running a campaign focusing on the effects of inflation to raise consumer awareness of index-linked savings certificates.The campaign has been inspired by research findings which found that only one in four savers takes inflation into account when investing. The drive will see NS&I’s index-linked certificates rebranded as inflation-beating savings in a bid to make the aims of its product suite clear for retail investors. This will include new consumer lit- erature and a TV advertising campaign fronted by entre- preneur Sir Alan Sugar. The NS&I research, which surveyed 1,010 adults, found 67 per cent have no idea what the current rate of inflation is – presently 2.9 per cent. Awareness of the impact of inflation had appeared to be rising after NS&I research found that the number of people ignoring inflation fell from 74 per cent in 2003 to 62 per cent in January 2005. but this figure rose back to 74 per cent in August. Further indicators of consumer ignorance of the effect of inflation on savings inc_ ludes 10 per cent believing it only affects the well off. Marketing director Karen Jones says: “Even though we are experiencing a period of relatively low inflation, people who invest their money for more than a few years in an account that does not protect against inflation could see the value of their money diminish as inflation takes its toll.”
The catastrophic effects of Hurricane Katrina is set to cost the insurance industry over 11bn, making it the second most costly hurricane in history. The figure is only eclipsed by Hurricane Andrew in 1992, when insurance claims reached over 12bn, according to a Swiss Re prelimin- ary estimate. The reinsurer expects its own claims to […]
GAM has been sold by UBS to Swiss bank Julius Baer as part of a 2.5bn deal. GAM is part of SBC Wealth Management, along with three private Swiss banks, all of which are part of the deal. The boutique manager was started in 1983 by the late Gilbert de Botton and has been owned […]
I am considering having you manage an investment portfolio and am intrested to know more about your investment process, how you constructed a portfolio and how you decide on the optimum asset allocation. I would also like to know what assumptions you use for the various asset classes and how these impact on the expected returns.
New Star Asset Manage- ment has promoted UK growth fund manager Stephen Whittaker to the role of joint chief investment officer, serving alongside Alan Miller. Whittaker will continue to manage the UK growth fund, which he took over from Miller in July 2002.
By Rob Burnett, head of European Equities at Neptune The ECB delivered a strong package in its latest policy announcement that managed to find the right balance between supporting the economy and not endangering the banking system. The EU banking system is very sensitive to negative rates and, if the ECB were to have cut […]
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