Investment

I invited you to suggest smaller companies that are ‘potential world-beaters’ for the next layer of stocks in our UK Optimist Fund portfolio — and your wide-ranging responses gave rise to one big question. What are we really good at these days? We certainly have strengths in bioscience, where your picks included Angle (blood analysis technology to identify cancer cells), Avacta (artificial proteins that stimulate auto-immune systems), BioVentrix (devices to treat heart failure), and ReNeuron (stem cell research). We’re a leader in financial technology, in which the venture capital fund Augmentum Fintech looks promising. Then there’s electronic engineering: you proposed Zytronic in touchscreens, DiscoverIE in electronic components and Ilika in

A few months ago, an aggressive US pressure group called the Campaign for Accountability declared that it had a new target: the Wall Street behemoth BlackRock. Quickly, the American press picked up on this campaign against excessive corporate power. Soon we were reading about how BlackRock, like Goldman Sachs before it, ‘rules the world’. Despite BlackRock’s supposed omni-potence, it is relatively unknown in Britain. It might be the biggest private manager of assets in the world but, in political terms, the company has existed in relative obscurity. That is, until last year, when it handed George Osborne a £650,000 contract for giving ‘advice’ one day a week. In recent months,

This piece was first published in the ‘190 years of The Spectator’ special. 15 March 1986 It is difficult to estimate the number of young investment bankers, stockbrokers and commodity brokers earning £100,000 a year. Perhaps there are only a couple of thousand, but they are so mobile and noisy that they give the impression of being far more numerous. Most are aged between 26 and 34, and two years ago they were being paid £25,000, in some cases even less, until the opening up of the City markets precipitated an epidemic of headhunting and concomitant salaries. In this respect they resemble the lucky winners on Leslie Crowther’s television quiz

To a classic car buff, nothing can beat the sheer joy of owning one for yourself. But is there actually any investment value in them? That’s the question Henry Jeffreys posed in the pages of Spectator Money back in 2016. It’s a difficult one to answer; he discovered that in recent years, classic cars have been so popular that they’ve harmed their own value slightly. As former Top Gear presenter Quentin Willson explained to Jeffreys, there have been ‘too many people getting involved without the requisite knowledge’. Most people who buy a classic car, however, don’t think about it in terms of its future value – although they probably do

‘We are all going to live longer, so why not invest in it?’­ seems to be the premise of Jim Mellon and Al Chalabi’s new book, Juvenescence – Investing in the Age of Longevity. Mellon and Chalabi forecast that within the next 20 years, the average life expectancy in the developed world will rise to between 110 and 120. As Mellon explains: ‘The increase in life expectancy is due to environmental factors, the rise of universal medical treatment, antibiotics, improved diet. The next step [in science] is going to change the fundamental biology of the human being, by genetic editing, stem cells, pharmaceutical intervention, as well as tissue regeneration.’ Hooray,

For every hard-working individual who has built up a pension pot to fund their retirement, there is a criminal trying to scam their way into stealing some of it for themselves. Pension funds are often the second largest source of wealth behind home purchases and, as a result, are a tempting target. Sadly, scams are not new to pensions. These are two of the most common forms. Pension liberation The victim is under the minimum age at which benefits can be drawn legitimately (age 55) and is promised access to their funds early, albeit subject to hefty charges. Investment scam The unsuspecting target is persuaded that current, legitimate, regulated pensions

Exceptions aside, Spectator readers are not consumers of luxury for luxury’s sake. They are unassuming keepers of style, guardians of distinction – and firm of belief that any claim to sophistication demands a renunciation of bling. In fact, I can only assume that this is being read by a pious confederacy of cashmere-clad clones. You may recall the early noughties. It was a halcyon age. Everyone was flush with cash and casual credit was king. We were at our most acquisitive and if there was money to be spent, it was invariably on one thing – the obsession of the era, the latest ‘It Bag’. Just thinking about it turns

Crowdfunding is a promising idea, and has created useful products. The Canary home-security system I wrote about recently was funded in this way. One big problem remains, though: how do you reward your early backers if you become too successful? Many of the 9,522 people who provided $2.5 million to fund development of the Oculus Rift headset on Kickstarter were understandably miffed when the company was sold to Facebook for more than $2 billion, of which they received precisely nothing. (I know how this feels — when I was 17, I inherited £200 from a distant relative, the remains of some money his father had made selling the patent for

‘Investments of passion,’ those objects of desire that are nice to own but will also hopefully rise in value. When I’m editing The Wealth Report, Knight Frank’s annual publication examining wealth distribution, the threats and opportunities for wealth creators, prime property markets and commercial real estate investments, ‘investments of passion’ is the section I most enjoy. My own advice is buy what you love and if it goes up in value so much the better, but some people do look at these things from an investment perspective. So, if that’s your thing, what should you be looking at? Well, according to the Knight Frank Luxury Investment Index (KFLII) which tracks

‘I don’t get excited when I hear EITC. Do you?’ This is a line from the late, lamented West Wing. The acronym EITC refers to Earned Income Tax Credit, a refundable tax credit for low to moderate-income working people. One of the characters, Charlie, is trying to fight for it, only to be told by Annabeth that this won’t be easy because it doesn’t have a catchy name like ‘Marriage Penalty’ or ‘Death Tax’. She’s right. Who would understand EITC, let alone get behind it? It’s the same on this side of the pond. Financial phrases like AER (Annual Equivalent Rate), DB (Defined Benefit) and OEICs (Open-Ended Investment Companies) don’t exactly roll off the tongue,

Social investment is starting to transform the way that parts of our economy work. Social investments include loans and shares into organisations whose principal purpose is social. They have grown by around 20 per cent a year for the last five years, according to Big Society Capital, the organisation that helps social enterprises and charities to raise finance. It estimates there is now £1.5 billion invested into social-purpose organisations, £427 million of which was new investment last year alone. The market is set to get a huge boost from social impact tax relief (SITR), which some are calling the Government’s best kept secret. SITR started in April 2014 and helps