Fixed income and global funds saw combined net retail sales of £1.5bn in March, bucking the trend of mounting outflows sparked by Brexit uncertainty. Global funds secured net retail sales of £691m in March, making it the largest month of inflows into the sector on record, according to analysis by the Investment Association. Read more: Janus Henderson outflows sparks declining profits Meanwhile, fixed income saw sales of £810m last month, which is the highest figure since January last year. Funds under management remained flat at £1.2trillion despite UK-based funds seeing outflows of £205m in March, making it the sixth consecutive month of net retail outflows due to ongoing Brexit and economic uncertainty. Investment Association chief executive Chris Cummings said: “Despite a bumpy start to the year, which saw £2.4bn outflows in the first quarter, funds under management increased to £1.2 trillion. “Ongoing economic and Brexit uncertainty … [Read more...] about Fixed income and global funds secure combined inflows of £1.5bn
Fixed income
Barclays income boost cheers investors, makes Brexit provision
LONDON (Reuters) - Barclays reported a lower than forecast attributable profit of 3.5 billion pounds ($4.56 billion) for 2018, as it set aside cash to cushion against Brexit losses and its trading business weathered a difficult fourth quarter. FILE PHOTO - The logo of Barclays bank is seen at its office in the Canary Wharf business district of London April 1, 2013. REUTERS/Chris Helgren/File Photo Barclays did show signs of progress in its under-pressure investment bank, where profit for the full year increased 15 percent to 2.6 billion pounds as its equities trading unit saw income rise 25 percent. The bank’s shares were up 4.3 percent by 0820 GMT. Barclays Chief Executive Jes Staley is locked in a high-profile tussle over the bank’s strategy with activist investor Edward Bramson, who believes the lender should ditch a costly plan to grow its investment bank and focus on other less risky parts of its business. Bramson on Feb. 5 sought to ratchet up pressure … [Read more...] about Barclays income boost cheers investors, makes Brexit provision
Romanian top managers wages are 59 percent fixed income and 41 percent bonuses
Most of the annual income of a top Romanian manager, 59 percent, is made of the fixed salary, the remaining 41 percent being annual bonuses, monthly and holiday bonuses. This is the largest share of bonuses within the total wage package among the countries in the region, according to a recent study conducted internationally by the Paylab, the payroll comparison launched in Romania by eJobs. The region’s average is almost 10 percent lower, with most managers reporting bonuses accounting for about 33 percent of total annual earnings. Poland is the country with the largest share of the fixed salary in the total revenue that a top manager receives, 79 percent. In fact, Poland is the only country in the Paylab report where top managers do not receive holiday bonuses, the only bonuses being monthly or at the end of the year, based on performance. Slovenia, Croatia, Latvia, Serbia, Lithuania and Estonia are close to Poland, in each of these countries, the most consistent annual revenue … [Read more...] about Romanian top managers wages are 59 percent fixed income and 41 percent bonuses
US bank Citi reports revenue fall after Wall Street’s dreadful December hits fixed income trading
US bank Citi has reported a surprise fall in revenue as Wall Street’s volatile December slashed income on its bond trading division by 21 per cent. The third-largest US bank said revenues fell two per cent to $17.1bn (£13.3bn) in the three months to December, below expectations of $17.6bn. Read more: Wall Street shares plummet after Apple warning over China slowdown “A volatile fourth quarter impacted some of our market sensitive businesses, particularly fixed income,” chief executive Michael Corbat said. Last month Wall Street suffered its worst December since 1931, with the S&P 500 down nine per cent and the Dow Jones 8.7 per cent, capping off the worst year for stocks since 2008. The bank’s fixed income trading division, which handles bonds, currencies and commodities, saw revenue decrease by 21 per cent to $1.9bn. Citigroup said the sharp fall “reflected a challenging trading environment characterised by volatile market conditions and widening … [Read more...] about US bank Citi reports revenue fall after Wall Street’s dreadful December hits fixed income trading
A ‘lifetime income super-tax’ would tax wealth and fix inequality
What if taxpayers paid an additional 5% on all their future taxable income, once they had earned over £2.5m? Nick O'Donovan considers alternatives to wealth tax. “The art of taxation consists in so plucking the goose as to obtain the largest amount of feathers with the least amount of hissing.” So said Jean-Baptiste Colbert, minister of finance to France’s 17th-century “Sun King”, Louis XIV. Today, almost four centuries after Colbert’s birth, his compatriots are rioting on the streets of Paris and taxation is once again a focal point for French political debate. The “gilets jaunes” movement, which began as a protest against fuel tax rises, has morphed into a more wide-ranging critique of the fiscal reforms of the French president, Emmanuel Macron. This includes the abolition of France’s wealth tax, the impôt de solidarité sur la fortune (or ISF). Wealth taxes such as the ISF levy an annual charge on the net assets … [Read more...] about A ‘lifetime income super-tax’ would tax wealth and fix inequality