| Social investing platform eToro to go public
Multi-asset investment platform eToro made headlines this week with news that it is to become a publicly-listed business valued at around USD10.4 billion following a 'combination' with special purpose acquisition company (SPAC) FinTech Acquisition Corp V. The 'social investment network', which was founded in 2007, has over 20 million users around the world, with 1.2 million having registered in January of this year alone.
"We created a new category of wealth management – social investing – and we are dominating the market as evidenced by our rapid expansion, says eToro CEO Yoni Assia."Our users come to eToro to invest, but also to communicate with each other; to see, follow, and automatically copy successful investors from all around the world."
eToro was one of the first regulated platforms to offer access to cryptoassets but according to new research by the Parliament Street
think tank, nearly one-third (30 per cent) of UK retail investors fear they have already missed the boat when it comes to investing in the likes of bitcoin and ether.
UK VCT investors meanwhile are happy with their investment choices, according to a new report by the Association of Investment Companies (AIC), which reveals a 94 per cent satisfaction rating among financial adviser clients. Portfolio diversification, tax-free dividends, the ability to trade on a stock exchange, and proven track record are all cited as benefits of VCTs over other forms of tax-efficient investment.
Staying with the tax theme, the UK Chancellor should scrap inheritance tax (IHT) and replace it with a radical new alternative to raise more revenue and help pay for the cost of Covid-19 support measures, according to a survey of over 500 professionals who advise families on inheritance planning. A recent STEP survey of solicitors, tax advisers, financial planners and
accountants found that 57 per cent support proposals by MPs for the current IHT regime to be replaced with a simpler flat rate, with far fewer reliefs and exemptions.
Change is needed too, in how retail investment websites are addressing investors' sustainability requirements, according to Planet Tracker. A recent review of 22 sites by the financial think tank found that not one provided investors with the means of excluding deforestation risk from their search. "Despite the rapid increase in ESG retail products, asset managers and retail investment websites are not keeping pace with the trend – missing out on the opportunity to provide investors with ESG investment choices that fully match their requirements and reflect their values," says Planet Tracker.
FE Investments is one firm that is taking clients' ESG requirements seriously with the managed portfolio service provider this week launching a new proposition to offer sustainable investment
reporting for retail investors.
The new reports which are available for FE Investments’ Responsibly Managed portfolio range include information that helps investors understand the impact their investments are having, including an environmental overview of the portfolio, exposure to controversial industries, and key social and governance metrics.
"No retail client wants an ‘ESG’ portfolio; they want to make investments which adequately reflect their beliefs," says Rob Gleeson, Chief Investments Officer at FE Investments. "‘ESG’ and the grouping together of these disparate and sometimes conflicting themes is an institutional solution which is not meeting client demand."
Wealth Adviser
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