Climate crisis to reshape finance: BlackRock CEO

Laurence D. Fink, the founder and chief executive of BlackRock, announced Tuesday that his firm would make investment decisions with environmental sustainability as a core goal.

BlackRock is the world’s largest asset manager with nearly $7 trillion in investments, and this move will fundamentally shift its investing policy — and could reshape how corporate America does business and put pressure on other large money managers to follow suit.

Fink’s annual letter to the chief executives of the world’s largest companies is closely watched, and in the 2020 edition he said BlackRock would begin to exit certain investments that “present a high sustainability-related risk,” such as those in coal producers. His intent is to encourage every company, not just energy firms, to rethink their carbon footprints.

“Awareness is rapidly changing, and I believe we are on the edge of a fundamental reshaping of finance,” Fink wrote in the letter, which was obtained by The New York Times. “The evidence on climate risk is compelling investors to reassess core assumptions about modern finance.”

The firm, he wrote, would also introduce new funds that shun fossil fuel-oriented stocks, move more aggressively to vote against management teams that are not making progress on sustainability, and press companies to disclose plans “for operating under a scenario where the Paris Agreement’s goal of limiting global warming to less than two degrees is fully realized.”

Fink has not always been the first to address social issues, but his annual letter — such as his dictum 2 years ago that companies needed to have a purpose beyond profits — has the influence to change the conversations inside boardrooms around the globe.

And now Fink is sounding an alarm on a crisis that he believes is the most profound in his 40 years in finance. “Even if only a fraction of the science is right today, this is a much more structural, long-term crisis,” he wrote.

A longtime Democrat, Fink insisted in an interview that the decision was strictly business. “We are fiduciaries,” he said. “Politics isn’t part of this.”

BlackRock itself has come under criticism from both industry and environmental groups for being behind on pushing these issues. Just last month, a British hedge fund manager, Christopher Hohn, said that it was “appalling” of BlackRock not to require companies to disclose their sustainability efforts, and that the firm’s previous efforts had been “full of greenwash.”

Climate activists staged several protests outside BlackRock’s offices last year, and Fink himself has received letters from members of Congress urging more action on climate-related investing. According to Ceres and FundVotes, a unit of Morningstar, BlackRock had among the worst voting records on climate issues.

In recent years, many companies and investors have committed to focusing on the environmental impact of business, but none of the largest investors in the country have been willing to make it a central component of their investment strategy.

In that context, Fink’s move is a watershed — one that could spur a national conversation among financiers and policymakers. However, it’s also possible that some of the most ardent climate activists will see it as falling short.

Even so, the new approach may put pressure on the other large money managers and financial firms in the United States — Vanguard, T. Rowe Price and JPMorgan Chase, among them — to articulate more ambitious strategies around sustainability.

When 631 investors from around the world, representing some $37 trillion in assets, signed a letter last month calling on governments to step up their efforts against climate change, the biggest US firms were conspicuously absent.

BlackRock’s decision may give CEOs license to change their own companies’ strategy and focus more on sustainability, even if doing so cuts into short-term profits. Such a shift could also provide cover for banks and other financial institutions that finance carbon-emitting businesses to change their own policies.

Had Fink moved a decade ago to pull BlackRock’s funds out of companies that contribute to climate change, his clients would have been well served. In the past 10 years, companies in the S&P 500 energy sector had gained just 2 percent in total. In the same period, the broader S&P 500 nearly tripled.

In an interview, Fink said the decision developed from conversations with “business leaders and how they’re thinking about it, talking to different scientists, reading different research.” Fink asked BlackRock to research the economic impacts of climate change; it found that they are already appearing in a meaningful way in the form of higher insurance premiums, for fires and floods, and expects cities to have to pay more for their bonds.

Wherever he goes, he said, he is bombarded with climate questions from investors, often to the exclusion of issues that until recently were once considered more important. “Climate change is almost invariably the top issue that clients around the world raise with BlackRock,” he wrote in his letter.

He wrote that he anticipated a major shift, much sooner than many might imagine, in the way money will be allocated.

“This dynamic will accelerate as the next generation takes the helm of government and business,” he wrote. “As trillions of dollars shift to millennials over the next few decades, as they become CEOs and CIOs, as they become the policymakers and heads of state, they will further reshape the world’s approach to sustainability.”

While BlackRock makes its green push, the Trump administration is going in the opposite direction, repealing and weakening laws aimed at protecting the environment and promoting sustainability. Indeed, Fink’s effort appeared to be another example of the private sector pressing on issues that the White House has abandoned.

Still, Fink made plain that while he intends for the firm to consider climate risks, he would not pursue an across-the-board sale of energy companies that produce fossil fuels. Because of its sheer size, BlackRock will remain one of the world’s largest investors in fossil-fuel companies.

“Despite recent rapid advances in technology, the science does not yet exist to replace many of today’s essential uses of hydrocarbons,” he wrote. “We need to be mindful of the economic, scientific, social and political realities of the energy transition.”

BlackRock manages money for countries across the globe as well as US states and municipalities. It could face opposition for its new stance in areas that benefit from fossil fuels, like Middle East countries or states where oil has become a significant part of their economies.

Fink said that because much of the money BlackRock manages is invested in passive index funds like those that track the S&P 500, the firm was unable to simply sell shares in companies that it felt were not focused on sustainability. But he did say that the firm could do so in what are known as “actively managed funds,” in which BlackRock can choose which stocks are included.

BlackRock also plans to offer new passive funds — including target-date funds that are based on a person’s age and are meant to be used to prepare for retirement — that will not include fossil fuel companies. Investors will be able to choose these instead of more traditional funds. To the extent that fossil fuel companies are in an index, BlackRock plans to push them to consider their eventual transition to renewable energy. Fink said the company would vote against them if they are not moving fast enough.

“We will be increasingly disposed to vote against management and board directors when companies are not making sufficient progress on sustainability-related disclosures and the business practices and plans underlying them,” he wrote.


2020 The New York Times Company

source: news.abs-cbn.com

China scraps foreign investment cap in stocks, bonds

BEIJING - China on Tuesday removed limits on foreign institutions wanting to invest in its stocks and bond markets, as it seeks to attract overseas investment amid a slowing economy and a trade spat with the United States.

Foreign individuals are barred from investing directly in China's markets, but the country allows certain institutions to buy shares under the so-called Qualified Foreign Institutional Investor (QFII) scheme.

The State Administration of Foreign Exchange (SAFE) said Tuesday it has removed the overall ceiling of $300bn on total asset purchases under this scheme, offering unfettered access to the world's second-largest capital market.

A cap on a yuan-denominated sister scheme -- the Renminbi Qualified Foreign Institutional Investor (RQFII) program, which allowed overseas institutions to invest in Chinese securities using the offshore yuan -- was also removed on Tuesday.

"Foreign institutional investors with the relevant qualifications can remit funds to carry out investment in securities in compliance with regulations, greatly enhancing the convenience for foreign investors participating in the onshore financial market," the regulator said in a statement.

The regulator said it was also seeking permission from China's cabinet to scrap administrative licenses needed by foreign investors to purchase stocks and bonds.

The moves aim to "facilitate foreign investors to invest in the domestic securities market and enhance the depth and breadth of China's financial market opening," said Wang Chunying, a spokeswoman for SAFE.

Just over one-third of the $300 billion QFII investments quota had been used by end-August, according to SAFE data.

Wang said that a yuan-denominated investment scheme, or RQFII program, will now be open to all overseas institutional investors that meet certain requirements. Earlier it was only available to investors from certain countries or regions on a pilot basis. 

China has recently eased restrictions on foreign investment in the financial sector, as the world's second-largest economy fights slowing growth at home and a damaging trade war with the United States.

China will remove shareholding limits on foreign ownership of securities, insurance and fund management firms in 2020, one year earlier than originally planned, the Financial Stability and Development Committee said in July.

Foreign investors will also be encouraged to set up wealth management firms, currency brokerages and pension management companies, the committee said.

Beijing has long promised to further open up its economy to foreign business participation and investment but has generally dragged its feet in implementing the moves.

In November, Beijing made an exception for two European insurers, allowing Germany's Allianz to launch a 100 percent foreign-owned subsidiary, and France's Axa to take control of its joint venture.

And in December, China's securities regulator authorized Swiss bank UBS to take a controlling stake in its local business.

source: news.abs-cbn.com

Jollibee invests in US Mexican food business Tortas Frontera

MANILA - Jollibee Foods Corp on Friday said it has entered into a venture with award-winning Chef Rick Bayless and his Tortas Frontera brand to build a Mexican fast-casual business in the United States.

In a letter to the stock exchange, JFC said it would invest $12.4 million for 47 percent membership interests in Tortas Frontera business founded by Bayless.

JFC said its subsidiary Jollibee Foods Corporation (USA) closed the transaction on Dec. 21, as it sought to expand its presence in North America, the country's largest restaurant operator said. 

Jollibee with Tortas Frontera will build "a significant business" in the fast-growing Mexican food category in the United States. The Mexican food industry in the US had an estimated sales of $40 to $45 billion in 2017, the company said.

"This venture is very much in line with JFC’s mission: to serve great tasting food and spread the joy of eating to everyone," the statement said. 

Jollibee confirmed in July that it was looking to acquire a Mexican brand in the US to challenge the world's top fast food operators. 

Tortas Frontera has 4 restaurants in the US while Jollibee, which recently took full ownership of US burger chain Smashburger, operates a total of 3,079 restaurant outlets in the Philippines.

source: news.abs-cbn.com

Facebook to build $1 billion Singapore data center, first in Asia

SINGAPORE - Facebook said Thursday it would invest over $1 billion to build a data center in Singapore, its first in Asia, powered by renewable energy and adapted to the city-state's tropical climate. 

The center is expected to be operational around 2022, and will host Facebook servers and centralize its IT operations, Thomas Furlong, Facebook vice president of infrastructure data centers, told reporters.

The 170,000 square meters (1.83 million square foot) site in the land-scarce city-state will be stacked over 11-storys, and will come with custom features to cope with the steamy temperatures, which rarely drop below 25 degrees Celsius (77 Fahrenheit).

These include a new state-of-the-art cooling system which uses water rather than air and will work better in the humidity, as well as a building facade made of perforated, lightweight material to allow for better air flow.

The company expects it to be run on 100 percent renewable energy, like its other data centers. 

The SGD 1.4 billion ($1.02 billion) facility will be the first data center designed and constructed by Facebook in Asia as the company increasingly relies on custom-built facilities to meet its needs, Furlong said.

It will be Facebook's 15th data center worldwide.

Furlong said Facebook, which has 2.23 billion monthly active users as of the end of June, chose Singapore because of its robust infrastructure, availability of skilled labor and ease of doing business with the government.

Google has also built two data centers in the city-state, and announced this month it was starting work on a third, bringing their investment in the sites to $850 million.

Despite its popularity in Asia, Facebook has also faced criticism, particularly in Myanmar where it was used as a platform for the army and Buddhist hardliners to spread hate speech against the Muslim Rohingya minority. 

source: news.abs-cbn.com

Initial Coin Offerings, the lawless land of cryptocurrency fundraising

BERLIN - From raising $30 million in 30 seconds to being endorsed by Paris Hilton or vanishing into thin air: anything is possible in the risky new world of cryptocurrency fundraising, but regulators are lurking.

Bypassing oversight of any kind, Initial Coin Offerings (ICOs) have sprung from nowhere to become a hugely popular way for start-ups to raise funds online, offering self-created digital "tokens" or coins to any willing buyer.

ICOs herald "the democratization of investment", said Nil Besombes, a French blogger who specializes in digital currencies.

But in the lawless Wild West of ICOs, the risks are legion and Besombes himself admits to losing "the equivalent of 1,800 euros" when he fell for a slick online sales pitch -- only for the company to disappear without a trace.

"It's like gambling," he told AFP.

While the term ICO may suggest a link with conventional Initial Public Offerings (IPOs), there is no flotation on the stock market and the ICO investor typically holds no ownership stake in the company which would entitle them to a slice of profits distributed as dividends.

ICOs are thus essentially a form of crowdfunding where participants are betting that the value of their "tokens" will go up and that they will eventually be able to trade them for established cryptocurrencies like bitcoin and Ethereum, which can in turn be exchanged for traditional currencies.

ICOs have exploded this year with investors pouring $3.6 billion into 228 projects, according to data from Coinschedule. In 2016, that figure stood at just $96 million for 46 ICOs.

By June of this year, the money raised through ICOs surpassed that of early stage venture capital investments, the traditional way for young companies to raise funds from wealthy investors.

The ICO craze has drawn the attention of regulators around the world, who have warned of the risks of fraud, the volatility of virtual currencies and the lack of clarity on what a "token" represents.

"A lot of ICOs see values plummet by 80 or 90 percent but they can rebound strongly once the project begins to deliver results," said Tristan Colombet, head of the French auction platform Domraider, itself funded by an ICO.

The "tokens" offered by his company are currently worth just a third of what they were at the launch, to the dismay of investors.

Colombet says things will pick up "in early 2018" when his system to track auctions online and in the auctioneering room in real time is fully implemented, using the same "blockchain" technology that underpins bitcoin and many of the tech start-ups in the ICO universe.

CELEBS AND 'DIGITAL GOLD'

The gold rush fever surrounding ICOs is partly down to the soaring success of bitcoin, which first hit parity with the US dollar in 2011, two years after it was created.

Since then, the world's best-known virtual currency has enjoyed a meteoric rise, defying predictions of a crash. It has now surpassed $9,500.

Many ICO investors are lured by the possibility of stumbling upon the next "digital gold".

Firms issuing ICOs have raised their visibility by enlisting celebrities like LA socialite Paris Hilton, hip-hop producer DJ Khaled and US boxer Floyd Mayweather to tout their digital tokens on social media.

The endorsements prompted the US Securities and Exchange Commission to warn this month that celebrities "often do not have sufficient expertise" to judge such investments, and that they must disclose if they are receiving compensation for promoting ICOs.

SCRAMBLING TO RESPOND

The proliferation of ICOs has forced regulators around the world to take notice, their responses ranging from a crackdown to a wait-and-see approach.

China and South Korea have banned ICOs outright, while European supervisory bodies have voiced strong concerns.

The UK's financial regulator cautioned against the "very high-risk, speculative investments", while Germany's powerful Bundesbank central bank warned that the ICO trend was "attracting fraudsters".

The European Securities and Markets Authority (ESMA) said investors risked having no legal recourse in case of a dispute, as ICOs tend to fall "outside of the scope of EU laws and regulations".

Canadian and Russian regulators however have chosen another path by creating so-called "regulatory sandboxes", a framework that allows ICO firms to experiment for a certain time without falling foul of securities laws.

"We welcome this type of innovation," said Louis Morisset, president of the Canadian Securities Administrators, while stressing that ICO issuers should "understand what obligations may apply".

source: news.abs-cbn.com

Colossal SoftBank fund could shake up tech world

SAN FRANCISCO - Japan-based SoftBank is sending tremors through the tech world with a massive new venture capital fund for investing in startups that's expected to dominate the industry so thoroughly it's playfully referred to as a "gorilla."

The Vision Fund's $100 billion coffers nearly equals the total amount pumped into venture capital-backed companies last year, according to market intelligence firm CB Insights, and some say it may be a game-changer for Silicon Valley.

"SoftBank shows a remarkable amount of bravery, confidence and optimism to look to apply this much money in technology," said Bill Maris, who started Google Ventures nearly a decade ago and runs his own California-based investment firm Section 32.

"I can't say it's a wrong bet, if you think the trends in tech will continue in the future. I would be much more worried if SoftBank was saying tech is dead."

Last year, VC-backed firms received $100.8 billion across 8,372 deals around the world, according to CB Insights data.

The huge amount of cash could accelerate the trend where fast-growing startups remain private -- without the scrutiny and transparency of a stock market debut.

Some investors worry that the Vision Fund will buy into startups at high prices, overinflating the market, while crowding out other investors and prolonging the time it takes for young companies to go public.

SoftBank has outlined plans to focus on late-stage investments when startups are more established, and on investments of at least $100 million.

MATCHMAKING

The SoftBank fund is widely expected to pump some $10 billion into ride-sharing giant Uber, which has a whopping valuation near $70 billion. Such a deal would boost the profile of the Japanese group in Silicon Valley.

Maris predicted the venture capital market would adapt to the Vision Fund, and in the end there would be more money available for entrepreneurs.

"I always think more dollars available to innovators and inventors is a good thing," Maris said.

"If it does shake up the market, maybe things do need to be shaken up a little bit."

SoftBank chief executive Masayoshi Son has demonstrated a strategic appreciation for bringing together startups with the potential to benefit one another, according to analyst Patrick Moorhead of Moor Insights & Strategy.

Moorhead added that he was expecting either spectacular wins or failures from the Vision Fund, nothing in between.

"It is looking for mega-investments," he said.

CONSOLIDATION GOALS

SoftBank's early, lucrative, investment in Alibaba was part of a strategy focused on booming e-commerce in China, according to GGV Capital managing partner Hans Tung.

SoftBank's recent investments in ride-sharing firms in various countries fits a pattern of seeking money-making synergies by bringing competitors together to share technology, learnings and more.

"Masayoshi Son understands the value of consolidation," said Tung.

"It is affecting the way society moves from less efficient to more efficient, and the amount of innovation that could happen."

"If consolidation is somewhat expedited with SoftBank money, that is not necessarily a bad thing," Tung said.

He added the caveat that the kind of power that comes with such a large fund could be abused.

"If that money is used correctly, he should do well and do better for society," Tung said of Son.

"We don't need five ride-share companies battling each other."

For example, making industries, financial institutions, and health care more efficient with big investments might be welcomed.

Analyst Moorhead likened Son's style of investing to "matchmaking," targeting diverse companies that could help one another in the future.

Targets for the Vision Fund were expected to include e-commerce, ride-sharing, robotics and machine learning.

SoftBank has shown preference for technology trends with the potential to spread across borders and have significant impact on society, according to those who have tracked the company.

And with all the data collected by ride-sharing, e-commerce and other platforms, investing in artificial intelligence to mine insights from mountains of information makes sense.

"I don't see it impacting the entrepreneurs in the garage; those are typically smaller seed rounds," Moorhead said of the Vision Fund.

Since SoftBank has indicated it will make late-stage investments, its moves could become signals startups are planning to go public.

That strategy also leaves early funding of entrepreneurs to others, but could squeeze the profits of those investors when SoftBank negotiates from a position of strength to buy them out down the road.

"I admire the fact he is doing something visionary, I imagine that is why they call it the Vision Fund," Maris said.

"It is about investing in other people's dreams instead of squirreling the money away for yourself. Someone is making a really optimistic bet on the future."

source: news.abs-cbn.com

Ivanka Trump, husband benefitting from business empire: documents

WASHINGTON - Donald Trump's daughter Ivanka and her husband Jared Kushner have held onto real estate and business investments valued in the hundreds of millions while working government jobs, according to ethics filings released late Friday by the White House.

The disclosures came in a mass document release showing the wealth and financial assets of scores of senior White House staff members at the time they began government work.

Ivanka Trump's stake in the Trump International Hotel, located blocks from the White House, is one source of income that could represent a conflict of interest.

Critics have noted that interest groups or foreign governments could stay at the luxury hotel to get in the administration's good graces.

The White House documents show that Ivanka Trump and Jared Kushner, who are both officially close advisers to the president, are still getting income from holdings valued at between $240 million and $740 million.

Ivanka Trump -- who just days ago announced she would officially enter a federal role as an unpaid adviser to the US president -- will hang on to her stake in the Trump International Hotel.

According to her husband's disclosure the hotel stake is worth between $5 million and $25 million. Between January 2016 and March 2017 she made between $1 million and $5 million in rent or royalties from the hotel, the documents showed.

Kushner was recently tapped by his Republican father-in-law to lead a new White House office that aims to use business ideas to help streamline the government, according to the Washington Post.

The 36-year-old is a senior adviser to Trump with far-reaching influence over domestic and foreign policy.

Kushner left high-level positions at more than 200 entities related to his family's real estate business, according to the documents, but will continue to reap benefits from many holdings related to the business empire he ran with his father.

BANNON, COHN ASSETS

The White House disclosures included information on the assets of Gary Cohn -- the former president of Goldman Sachs who heads the White House National Economic Council -- and Steve Bannon, Donald Trump's chief strategist.

Cohn reported assets of between $253 and $611 million, and income in 2016 of up to $77 million.

Bannon's most important asset is his private consulting firm, valued at between $5 million and $25 million. He also had rental real estate valued at up to $10.5 million, and up to $2.25 million in the bank.

Bannon reported $191,000 in consulting fees earned from the conservative outlet Breitbart News Network, which he formerly headed, as well as more than $125,000 for work at the data firm Cambridge Analytica, which worked for the Trump campaign, and more than $61,000 in salary for a conservative nonprofit group.

The Trump administration is considered one of the wealthiest in US history -- Bloomberg estimates his cabinet and senior staff are worth some $12 billion.

NO TRUMP DIVESTMENT

Since being elected president, Donald Trump's vast business empire has been scrutinized by ethics experts who say it poses major conflicts of interest.

Before taking office in January Trump said he would formally hand "complete and total" control of his business empire to his adult sons, Don Jr and Eric, in a bid to avoid conflicts of interest - but he would not divest from his business holdings.

The Trump Organization, whose network of hotels, golf clubs and luxury residential towers stretches across 20 countries, is not listed on the stock market, and thus releases no public statistics.

Trump has thus far refused to release his tax returns, meaning little is known about the extent of its interests.

Don Jr, 38, and Eric, 32, are Trump's eldest sons from his first marriage. They are currently executive vice presidents in the Trump Organization.

Trump's personal lawyer Sheri Dillon promised that the new president would "build in protections" to show that his actions "are for their benefit and not to support his financial interests."

source: news.abs-cbn.com

Tips for Investing in Your 20s

It’s a great idea to begin investing as early as possible. However, many people are a bit too timid to begin investing in their 20s, fearing they aren’t skilled or knowledgeable enough. For others, the idea of putting money into investments seems silly when there are more important things to do with that money, like pay bills. However, if you really want to secure a strong financial future for yourself, then it is well worth getting into investing early. Here are some tips you can use as you get started.

Don’t Buy Into the Limited Resources Myth

As mentioned, many 20-somethings don’t even think about investing because they believe they don’t have the extra money to do it. This isn’t really true, though. For most people, this is the time when they have some extra cash because they don’t have kids, mortgages or other obligations that can drain finances. It is probably going to be easier for you to find extra money now than in the future.

Start Small

Another cause for hesitation is often a fear of not knowing what to do. You don’t have to jump in with both feet right from the start and probably shouldn’t. A good starting place is with your 401k if your employer offers one. You can try out different options and see how things go. You may even be able to learn a bit about corporate finance, like the information from UAB Online, which will be super helpful down the road. As you begin to work more with investing, you’ll begin to learn more, which will lead to more confidence and the ability to branch out with your investing.

Take a Few Risks

Since you are young, you have time on your side. A few losses won’t really hurt you in the long run because you have a lot of years ahead of you to make things up. Going with bigger risks allows you to have the chance to get big returns. If things pay off, you can get a great start to saving for your future. You should avoid sticking with just investments that have little risk because the returns are way too small. While you have time for them to add up, you still won’t be able to earn anywhere as much as you would if you took a risk every now and then.

Don’t Be Afraid to Ask for Help

You shouldn’t be afraid to get help with your investing. In fact, it is a smart idea. Despite starting out small and with easy investment, getting a professional to weigh in can be tremendously helpful. Even if you are currently enrolled in a business course, like on from Northeastern, you still can benefit from help. Not only will they be able to direct you properly, they will teach you a lot about investing that will come in handy in the years ahead.

Following these tips can help you to get started with investing now. Doing it while you are young can be incredibly beneficial to your future. The bottom line is to not let fears hold you back and to take some risks now while you have the time .

source: 20smoney.com

Pizza chain Shakey's files for IPO

MANILA - Restaurant chain Shakey's Pizza Ventures Incorporated (SPAVI) hopes to raise P5.5 billion via an initial public offering (IPO) this year.

SPAVI has filed a prospectus with the Securities and Exchange Commission (SEC) to sell around 352 million primary and secondary shares, including 46 million shares to cater for extra demand, at a maximum price of P15.58 each.

The offer price is expected to be finalized in November before its projected listing in December 2016.

“We intend to use the offer proceeds for the expansion of our in-house commissary, working capital requirements, potential acquisitions, and repayment of debt,” the company said Monday.

SPAVI's in-house commissary supplies the bulk of its pizza dough and crust, which is used to create its trademark Thin Crust pizza.

Shakey's was first established in the United States in 1954. It then opened its first restaurant in 1975. Since then, it has been famous for its Thin Crust pizzas, its chicken and mojos.

SPAVI owns the rights to the Shakey's trademark in the Philippines, where it has 177 stores all over the country. Seven more stores are expected to open before the end of the year, with 20 more stores in the works for 2017.

The company also owns the rights to the Shakey's brand for the Middle East, Asia, China, Australia and Oceania markets.

Majority of SPAVI is owned by Century Pacific Group Incorporated (CPGI), parent company of Century Pacific Food Incorporated (CNPF).

Earlier this year, CPGI and GIC, Singapore's sovereign wealth fund, partnered to acquire majority of the pizza business from the Prieto family, which still holds a minority stake in SPAVI.

source: www.abs-cbnnews.com

Standard Chartered probed in U.S. for Indonesia 'bribes'

Standard Chartered acknowledged Tuesday it was being investigated by the U.S. Department of Justice over claims that an Indonesian subsidiary had paid bribes to secure contracts.

The London-based, Asia-focused bank said in a statement that it had referred the matter to the "appropriate authorities" and launched its own review.

The Wall Street Journal newspaper said that an internal audit at Indonesian energy company Maxpower Group found evidence of possible bribery and US prosecutors were examining whether Standard Chartered was culpable for not stopping it.

"Standard Chartered takes very seriously allegations of impropriety in any of our private equity investments," the bank told AFP in a statement when asked about the report.

"We proactively referred this matter to the appropriate authorities and have conducted our own review.

"When we receive allegations of improper behaviour in an investee company, we pursue those allegations vigorously and act appropriately, including sharing information and cooperating fully with government authorities and addressing any issues of internal conduct and accountability."

The Department of Justice did not comment when contacted by AFP.

The Wall Street Journal said the Maxpower internal audit found that more than $750,000 in cash advances needed to be examined as possible bribes, while lawyers who reviewed the audit found indications that employees made inappropriate payments to Indonesian government officials between 2012 and 2015.

Standard Chartered began investing in Maxpower in 2012 and is the majority shareholder.

There was no immediate comment from Maxpower.

But a source close to the case told AFP the US authorities were indeed examining whether Standard Chartered, via its representatives on the Maxpower board, was aware of alleged bribes to win government contracts.

The investigation would also look at why the bank's alert procedures for spotting such matters had not been triggered.

But the probe will focus on whether Standard Chartered has violated the terms of its 2012 deferred prosecution agreements with the Department of Justice.

Standard Chartered paid $667 million in 2012 to settle charges it violated US sanctions by handling thousands of money transactions involving Iran, Myanmar, Libya and Sudan.

In August 2014, the bank was hit by US regulators with a $300 million fine and restrictions on its dollar-clearing business for failing to detect possible money-laundering.

source: www.abs-cbnnews.com

Samsung says sold shares in 4 companies

SEOUL - Tech giant Samsung Electronics Co Ltd said on Sunday it sold shares in four companies including ASML Holding NV and Seagate Technology Plc to free up money for additional investments for its core businesses.

Samsung said in a statement it sold about half of its shares in ASML while selling its entire 4.2 percent stake in Seagate. The company also sold its 0.7 percent stake in Sharp Corp and its 4.5 percent stake in Rambus Inc.

A Samsung spokeswoman told Reuters the total proceeds from the sales exceeded 1 trillion won ($888.85 million) but declined to give further details including when the shares were sold.

A term sheet seen by Reuters on Sept. 8 showed Samsung was selling about half of its stake in ASML for 606 million euros ($675.99 million). The company's stakes in Rambus, Seagate and Sharp were worth a combined $456.4 million based on closing prices on Friday.

Samsung Electronics and other affiliates of Samsung Group have been divesting from non-core operations as South Korea's top conglomerate seeks to narrow its focus and secure more resources for its main businesses.

"There is no impact on the business cooperation with the relevant companies," the South Korean firm said without elaborating.

source: www.abs-cbnnews.com

A Different Way to Look at Debt

There’s often conversations about debt being good or bad. But really, debt is just debt. It has no emotions and you’re the person who’s in control of it.

I read a comment recently that rephrased this good vs. evil debt mentality in the most perfect way: debt is not good or bad – it is profitable or unprofitable.

Student Loan Debt
I’ve personally never had any student loan debt so I don’t know what it feels like it to have it hovering over my head. But going through the theory of profitable vs. unprofitable debt student loans could fall into either.

Your student loan debt is profitable if:

    Your degree helps you land a job that pays higher than you could get without a degree. (Because we know that not all degrees are going to score you a high paying job.)
    You use your student loans to pay for tuition and related expenses.

If you’ve used your student loan debt to finance a lifestyle that you shouldn’t be living right now then your student debts are not profitable.

Use your student loans to advance your career, earn decent money, and only use them to pay for necessary college expenses and you’re looking at profitable debt.

Consumer Debt

Consumer debt is the absolute most unprofitable debt that you can have. If you’re using credit cards and other personal loans to finance your life you’re living beyond your means and are setting yourself up for financial disaster.

Stay away from this type of debt.

Mortgage Debt

Mortgage debt is a big toss-up. If you plan on living in one place all of your life, purchasing a house may save you money in the long run over renting.

However, if you’re not staying in one place forever and at some point need to sell your home you could lose a lot of money if housing prices drop. OR you could make a small profit when it came time to sell.

Mortgage debt is one that comes down to individual circumstances although I would argue that it definitely leans more toward the unprofitable side of the equation.

Investments

Debt becomes the most useful when it comes to investing. Many investors have built their wealth by leveraging debt and purchasing real estate.

Other ways to use debt to its advantage is when you’re investing in yourself in a way that produces tangible results or using that money to grow your business.

Bottom line: debt isn’t good or evil. When you intentionally use it to its advantage it can be a tool for building wealth. If you use it in an irresponsible way it can be a path to financial disaster.

source: everybodylovesyourmoney.com

From saving to investing: 5 tips for OFWs

MANILA - Most overseas Filipino workers (OFW) leave their homeland and loved ones to work abroad in pursuit of financial prosperity. If you are now working abroad, it is not enough to simply save up your money. Instead, you should invest these savings so that your money can grow faster.

For OFWs, the need to invest smartly is particularly urgent since your opportunity to raise funds is linked to the length of your contract. Once your contract of work is over, it is possible that you would find yourself without having a source of income, until you find a contract again. For this reason, you need to come up with the right investment choices that match your circumstances and make your money work harder for you.

Essentially, OFWs should be guided by the same investment principles as Filipinos who are working and based at home, save for a few considerations to reflect your circumstances, in particular not being in the country.

Here’s a simple five-step guide to help you in making your investment decisions:

1. Consider liquid and professionally managed investments.

Shop for investment products that are easy to purchase and dispose off even if you are not in the Philippines. The nice thing with today’s technology is you can scan online, start by looking at the individual websites of financial institutions. Your choices include the following:

· Mutual funds – These are pooled funds invested in different types of assets to match your desired time frame and level of risk. Some may have the potential for high gains but will also come with higher risk. These are available to retail investors for a beginning account of as low as P5,000.

· Unitary investment trust funds – These are also pooled funds invested in various assets to match your risk profile and investment horizon. These are available to retail investors for a beginning account of as low as P5,000.

· Insurance-linked investments – This is an insurance product combined with an investment fund, fulfilling your need for protection and capital gains. Your monthly payment would depend on the amount of coverage you purchased, as well as the type of asset you chose to invest in.

· Equities – These shares represent shareholdings in a company. You profit from the trading of these shares in the stock market. Online brokerages can facilitate your trades, with some of them requiring an opening balance beginning at P10,000.

· Bonds – These represent debt taken by either the Philippine government or companies. They usually have a fixed return and are therefore safer. They may be purchased through most banks for as low as P5,000.

2. Keep your papers in order.

Ensure that you have proper documentation to open and maintain these accounts, either while you are visiting the Philippines, or from abroad. Download their online forms, then mail a clear copy of your required IDs. Before sending these documents over, it may be helpful to personally contact the financial institution through their emails so that they can review your signed forms and requirements before you send these. This will save you a lot of time and effort.

3. Use safe and direct channels for sending money.

Find a secure and cost-effective way to put money into your investment from where you are. Online banking services, which are now available to those with accounts in local banks, are among the safest channels you can use. You can also use bank-to-bank transfers. If you wish to go through remittance channels, consider companies with long track records and recommended for customer service if something should go wrong. Unsafe ways of sending money are physically through people, no matter how much you trust them; through other people’s bank accounts; or by sending the money in the mail.

4. Make your payments or remittances regularly.

If you send money to the Philippines, it would be good to do so following a schedule, so that you and your loved ones back home can plan your cash flows better. Have the discipline to send money on schedule so that your loved ones can make payments on time, letting you avoid penalties in the process. Luckily, major financial institutions all allow you to make payments or transfers online. You may want to check out https://remittanceprices.worldbank.org/en to know how much it costs to send money from one part of the world to another.

5. Ensure the legality and integrity of your planned investment.

OFWs are often the target of investment scams. Check out the site of the Commission of Filipinos http://www.cfo.gov.ph/ to read the latest news and updates on legitimate and illegitimate business deals. You may also have relatives luring you into get-rich-schemes that offer nothing but false promises. While you may trust your loved ones, it is but prudent to check out everything about the proposed investment deal before you turn over your hard-earned money.

source: www.abs-cbnnews.com

How to set your financial records straight

MANILA, Philippines - Did you ever have to replace a malfunctioning gadget but couldn't claim a warranty because you've thrown away the receipt?

Have you applied for a travel visa and found yourself unable to produce bank statements because you don’t even know if you have those?

Have you had to avail of medical insurance but couldn't tell the hospital your account number?

Keeping financial records can be quite a chore, given the volume of papers that we have to track. Yet it is something you cannot avoid and will have to do. It is also one of the most important, yet often overlooked, aspects of personal finance management.

There are definite advantages to keeping and organizing your records. You save time, money and avoid inconveniences that may arise when you suddenly need documents to prove your identity or your financial capability for various reasons -- to get travel documents, use pre-need plans, apply for credit cards and loans. For financial planning purposes, having records are the first step to help you monitor your expenses, your spending behavior, and better understand or predict your cash flow.

Understandably, you wouldn't want to keep all records forever, so you need to think about what records you should keep, how you should keep them, and for how long.

There are some records that you instinctively know you should keep: proof of ownership of property, certificates of deposit, government-issued documents such as certifications, service warranties, tax payments, and the like. There are others that you may want to hold on to for a given period of time before disposing of these.

For instance, you can keep receipts of items you’ve bought using your credit card for reconciliation purposes until the statement arrives, then dispose of it. You can wait till you get the annual summary of your investments before throwing away your quarterly statement of accounts, and hold on to home, car, and medical insurance policies until they are renewed.

On the other hand, receipts for significant purchases like jewelry, appliances, and cars — along with corresponding service contracts and warranties— must be kept while these are in your possession. Tax records and their supporting documents should be retained for generally three years, coinciding with the 3-year statute of limitations, although some tax consultants have advised businesses to hold on to their tax records for as long as 10 years.

Here are some ways to help you with record-keeping:

Spend a few minutes every week to go through your records, paying special attention to those that are time-sensitive such as bills and payments. If you run a home office, make sure you do not mix your personal records and your home business records.

Have a temporary record storage area.
If you do not have time to check records daily, you can try to have an expanding envelope where you can temporarily stuff all receipts, statements or documents that you are unable to check or sort right away. It may be a good idea to have another smaller envelope specifically for important records in your bag. Put documents that you receive in the course of the day – at the office, for instance -- in this envelope, then transfer the contents of this to the expanding envelope you have at home. At the end of the week, go through the contents of this temporary file storage and sort out its contents.

Think of a filing system to categorize your records.

Make sure that this would fit your lifestyle and that you are comfortable with it. One way is to arrange your files according to date and category. Another example is to arrange them in four groups: Active File, Inactive File, Important Papers, and Throw Away.

The Active File consists of documents vital to the everyday operation of your household. These papers should include: appliance manuals, warranties, and service contracts (including their receipts); bank statements; bill payment receipts; billing statements (from utility and credit card companies, among others); credit card information; employment records; health benefit information; insurance policies (car, home, and life, among others); loan statements; safe deposit box inventory (and key); tax receipts

Inactive File. Documents from the Active File that are three years and older can be transferred to the Inactive File.

Important Papers are those that are irreplaceable or difficult to replace. These documents include: Certificates of deposit; contracts; deeds and property titles; life insurance policies; passbooks; Power of attorney; stock and bond certificates

Throw aways are those that have you have no need for . This would include expired insurance policies, receipts that are of no consequence, billing statements that have long been paid for, etc.

Label your records for easy reference.

For example, documents pertaining to your property could fall under “Real estate assets” while utility bills could be marked as simply “Utilities.”

Have back-up files of your most important documents.

Have photocopies or scanned copies of your passport, property titles, and investment certificates that you can store electronically. Alternatively, you may take photos of these using your smart phone. There are many apps that now allow you to store images of your records using the cloud.

Keep a list of the documents that you have.

Over the years, you may no longer remember what you have. This list will make retrieval easier and faster.

Originals of important records must be kept safe and secure in a secondary location like a safe deposit box at the bank, which you can avail of for a minimal fee. If you prefer to store them at home, then you must do so in a fireproof and waterproof safe. Place the documents in Ziploc bags or other airtight waterproof containers before putting them in the safe.

Let your spouse or closest next of kin know where to look for the most important records in the event that you are not physically present to retrieve these. If your original documents are in a bank safety deposit box, you might want to have a Power of Attorney left in an easily accessible place for them to access your safety deposit box in your absence.

When disposing of financial records, take the necessary precautions to protect your personal and financial information against identity thieves. Tear these documents into little pieces or get a portable paper shredder to help you dispose of stale documents.

source: www.abs-cbnnews.com

How to recover from bad investments

MANILA, Philippines – Unless you are extremely lucky, losing money is common either through bad investments, mismanagement or foolish purchases.

But according to Vittorio Gomez, a board of trustee at the Fund Managers Association of the Philippines, the first step in recovering from a bad investment is not to panic.

He said most investors lose more money due to rash decisions after making a bad investment.

“Do not throw good money after bad. It will have to come from someplace else,” Gomez told ANC’s “On The Money.”

If time is an issue, investors should consider checking their lifestyle and determine where they can cut back, and find a way to reinvest.

“Adjust your risk parameters, you don’t have to be in highly volatile investments. You can invest in the money market if you need the money soon,” he said.

“The number one thing you don’t want to do is hold cash, because if you want to lose money, hold cash,” he added.

Gomez reminds investors that “time is your best friend in the stock market,” but you should also know why you’re investing in the first place.

“You should always assess the risk that you are willing to take. If you are jittery about the market the maybe you should consider narrowing your focus to safer bets,” he said.

Safer bets are those companies with big names and have good historical earnings, growth and can sustain dividends.

If you are just starting out, Gomez said it is advisable to invest in dividend earning stocks.

He added that quick and calculated decisions will help you recover from a bad investment, for instance if a bond is on the verge of bankruptcy or if an equity or stocks is about to get delisted, you should sell it right away.

“But if it’s just a stock price dropping due to emotional reasons but if you look at the underlying value, it’s still there, then don’t sell it,” he said.

Gomez also urged investors to stay updated with regulatory bodies and business news so you can differentiate between rumor and fact.

"If what you are hearing is hearsay or some speculation, try as much as possible to reconfirm that rumor and move from there," he said.

source: www.abs-cbnnews.com

What to do with your money when interest rates rise

MANILA, Philippines - If there is one thing that investors and market analysts around the world watch closely, it is the movement of interest rates.

Last year, following an improvement in the US economy, the US Federal Reserve announced that it would cut its bond buying program. This signaled that interest rates would begin to rise. That announcement set off a series of events including foreign investors pulling out their funds from the Philippines and other emerging markets, the local stock market dropping, and the exchange rate rising to the P45 level against the US dollar. For the Philippines, where interest rates have been at record lows, this created fears that rising interest rates would affect investment and consumer spending.

Most investment houses forecast that in 2014, interest rates would be kept low by authorities in order to aid reconstruction efforts, especially after the damage caused by Typhoon Yolanda, and in order to keep consumer spending going. Just the same, market analysts also say that a spike in interest rates is imminent within the year.

With the prospect of an interest rate hike, one of the questions most frequently asked by people is what to do with their money.

The answer to this is it depends on your current portfolio.

Rising interest rates have their upsides and downsides. On the down side, they could mean higher interest rates on your loans. If you have debt, you may find yourself having to pay more interest rates. On the upside, higher interest rates can mean better yields on some investment instruments you may be holding. What you would do would therefore depend on what your current portfolio looks like, as well as your investment goal.

If you are holding debt with floating interest rates, and you happen to have cash, you may consider paying it off, for instance.

If you are holding equities, you may consider shifting to higher-interest yielding instruments. If you are holding a savings account or cash deposits, then you can just stay put.

An uptick in interest rates is often seen as a signal to move to safer investment havens, such as fixed income instruments.

Fixed income instruments, as the name suggests, provide preset periodic returns. The rates are known by the investor from the beginning and the principal is returned at maturity. Examples of fixed income instruments are government securities, bonds, and certificates of deposit. All are debt instruments, wherein the issuer pays back the investor with the fixed interest rate on a set date. The date that the loan is to be repaid is called the maturity date. Take a 10-year treasury bill with a fixed rate of 3% per annum. An investment of P1,000 would mean a P30 payment until maturity, which is when the P1,000 will be returned to the investor.

When interest rates rise, a simple rule to follow is to head for safety.

The safest haven, of course, is cash, followed by fixed income instruments that have short maturities. This is because the relationship between interest rates and the value of investment instruments is inversely proportional. In other words, when interest rates rise, the value of the instrument falls.

It is important to note that all instruments carry a measure of risk. One measure of risk is the amount of time that you will be holding on to the instrument. The longer an instrument reaches maturity, the higher the risk it carries, for obvious reasons: it is very hard to imagine the risks that may suddenly arise in the future. For instance, there might be a catastrophe that may affect the ability of the issuer to pay off his debt. In contrast, risks in the immediate horizon are easier to predict. Because of this measure of unpredictability, prices of instruments with longer tenors are higher. The 25-year treasury bill, for example, has a higher price than the 10-year T-bill.

As interest rates rise, most prefer to go for instruments with the shortest possible duration. Instruments with durations below one year are generally considered short-term. This allows an investor to simply roll over his or her money at the end of the term, or pull out your money without paying penalties if there is a sudden change in the rates that may warrant a shift to another instrument.

Short-term instruments are traded in the money market. Money markets offer investors two important elements: safety of capital and liquidity. Although they do not offer much in terms of yield, you are assured of getting back your capital within a short period.

Since most fixed term instruments (certificates of deposit, commercial papers, and treasury bills) are purchased and traded by financial institutions in the secondary markets, the best way for retail investors to access these is through unitary investment trust funds (UITFs) or mutual funds. These provide an alternative way to invest in these instruments and may be availed of at an affordable initial investment, usually ranging from P5,000 to P10,000. UITFs are available from financial institutions such as banks and insurance firms. UITFs also allow you to diversify your portfolio and lessen your risks.

Before you make any shift in your holdings, remember that diversification is the key to balancing your risks and wealth objectives. In determining which UITF to avail of, keep your investment goal in mind. Do you want capital safety or growth? Your choice of UITF should be based on your goal, as well as your risk appetite and financial standing. If you are not sure what to do, it is always a good habit to seek the advice of a trusted professional to guide you in managing your investment portfolio.

source: www.abs-cbnnews.com

Growth, investment at risk from emerging markets rate hikes

LONDON - A growth-crushing downward spiral looks imminent for emerging markets, threatening to turn back the tide of foreign investment that flooded into developing countries on the premise of fast economic expansion.

Countries in Asia, Latin America and emerging Europe are being forced to raise interest rates sharply to stave off currency collapses and a wholesale exodus of foreign investors. Turkey, India and South Africa jacked up rates this week, heaping pressure on others to follow suit.

Whether these steps will steady the currencies is unclear, but one thing is sure - economic growth, developing countries' main trump card over their richer peers, will take a hit.

Analysts reckon Turkey's dramatic 425 basis point rate hike could almost halve this year's growth rate, to 1.7-1.9 percent, for example, while the South African Reserve Bank, which raised by half a point, cut its estimates for 2014 and 2015 growth.

Indonesia's economy last year probably grew at its slowest pace in four years, below its long-term average of above 6 percent, after 175 bps in policy tightening since June.

Even before the latest increases in borrowing costs, developing country growth rates were under the cosh.

Not only was the developing world's 4.7 percent growth last year almost a full percentage point under International Monetary Fund forecasts, its premium over growth rates in advanced countries has shrunk to its lowest in a decade.

In Brazil and Russia, growth is running below the levels forecast for Britain and the United States in 2014.

That is very bad news for the investment outlook, going by the findings of a recent IMF study that examined capital flows for 150 countries between 1980 and 2011.

Net capital flows to emerging economies, estimated at as much as $7 trillion since 2005, have tended to be highest during periods when their growth differential over developed economies is high, the paper found.

And investment flow is also "mildly pro-cyclical" with domestic growth rates, the paper said, meaning that as developing economies expand, they draw more investment.

"Investors are getting what they asked central banks for - higher interest rates. But there is no denying that there is a massive headwind to capital flows into emerging markets," said David Hauner, head of EEMEA fixed income strategy and economics at Bank of America Merrill Lynch.

"Historically the two main drivers of capital flows to EM (are) the difference between EM-DM growth... (and) real U.S. interest rates which are starting to go up."

SUDDEN STOP?

Higher interest rates raise borrowing costs for the corporate sector and curb credit growth and consumer demand, thus hurting companies' profits. They also make fixed income assets less attractive.

Clearly then, bad news for bond and equity investors who, Thomson Reuters service Lipper says, have pumped almost half a trillion dollars into emerging assets in the past decade.

Add to that bank loans, merger and acquisition deals and direct investments by foreign companies into manufacturing and services, and the figure just since 2005 could be as large as $7 trillion, Institute of International Finance data show.

Like Hauner, Morgan Stanley analysts see the central bank moves as broadly positive, in that they raise inflation-adjusted, or real interest rates. That ultimately makes economies more competitive by slowing wage growth.

In the meantime though, emerging markets are exposed to the risk of a sudden stop in capital flows, highlighting potential ructions on credit markets, asset prices, economic growth and also politics as a result of the rate rises.

"Will we see an orderly slowdown, or a more disorderly unwind?" Morgan Stanley said in a note. "An orderly deceleration in growth will also be important in keeping political uncertainty at bay with elections ahead of us in many double-deficit countries."

India, Brazil, Turkey, Indonesia and South Africa are among key developing countries facing elections in 2014 and which are seen as vulnerable to the withdrawal of the Fed's cheap cash because of their budget or current account deficits.

NOT YET IN ASSET PRICES

Equity investors found out the hard way in China that fast economic growth doesn't equate with investment returns, enduring miserable stock market performance for two decades even as the economy grew at turbo-charged rates.

Slowing growth is at least partly driving heavy outflows from emerging markets, where funds tracked by EPFR Global shed over $50 billion in 2013 and over $8 billion so far this year.

But the growth allure is yet to completely fade, with many investors focusing on long-term positives such as demographics or low ownership of goods such as mobile phones or cars.

The question is when will asset prices reflect the inevitable growth-inflation hit these developing countries will take, says Steve O'Hanlon, a fund manager at ACPI Investments.

"Markets are pricing a pretty dire situation in emerging markets (but) is EM cheaper given potential future output? I wouldn't say so but it's getting there," O'Hanlon said.

"When currencies stop selling off, if (governments) produce real reforms, I will be investing in those markets. If you don't see any reforms, the rate hikes will just destroy growth, discourage investors and make the situation far worse."

source: www.abs-cbnnews.com

Billionaire bashed for putting rich-haters on par with Nazis

SAN FRANCISCO - Billionaire Silicon Valley venture capitalist Tom Perkins was at the center of a social media firestorm on Monday for comparing protests against the rich to Nazi persecution of Jews.

Perkins' publicly stated position even prompted the powerhouse investment firm bearing his name, Kleiner Perkins Caufield and Byers, to say he was not speaking on its behalf.

"Tom Perkins has not been involved in KPCB in years," the venture capital firm that Perkins helped create said in a message fired off at Twitter, which was among its investments.

"We were shocked by his views expressed today in the WSJ and do not agree."

Meanwhile, Perkins on Monday was standing behind what he said in a letter published in the Wall Street Journal that ignited controversy over the weekend.

"Writing from the epicenter of progressive thought, San Francisco, I would call attention to the parallels of fascist Nazi Germany to its war on its 'one percent,' namely its Jews, to the progressive war on the American one percent, namely the 'rich," Perkins said in the opening of the letter.

"This is a very dangerous drift in our American thinking," he wrote. "Kristallnacht was unthinkable in 1930. Is its descendent 'progressive' radicalism unthinkable now?"

Perkins noted the Occupy movement and recent protests in San Francisco over buses provided by Google to shuttle tech workers to Silicon Valley.

Activists in San Francisco have taken to blaming Internet company employees for driving up rents, housing prices and other aspects of living here.

"We have outrage over the rising real-estate prices which these 'techno geeks' can pay," Perkins wrote.

Perkins on Monday openly apologized for the 'Kristallnacht' reference but said that he still sees the demonization of the rich as a dangerous trend.

A Twitter post by @OccupyWallStNYC dismissed Perkins assertion as "insane."

source: www.abs-cbnnews.com

Why you should make a 'money roadmap' for 2014

MANILA, Philippines - All motorists understand that a good map is worth its weight in gold, especially if you are navigating in difficult conditions. In this age of GPS or global positioning system, charting one’s course has never been easier. Are you doing the same with your money?

The best way to open the year on the right footing is to have an idea of where you’re going. This is why the beginning days of 2014 is a great time to work on a personal financial plan. This could serve as a roadmap that will guide you in the year ahead.

Why do you need a personal financial plan?

In a nutshell, it’s your map that would guide your spending and investment decisions to help you reach your goals. Simply put, how to get from A (your money situation right now) to B (your goals).

A personal financial plan may also be likened to a blueprint of a house that you are building. While it may be fun to think of how to decorate individual rooms and make your choice of toilet fixtures, you cannot create a sound house without having an architectural plan first.

Similarly, making spending and investment decisions that are not part of a personal financial plan could keep you from achieving your goals of having a secure financial future optimally.

What goes into a personal financial plan? It should have your goals on one hand, and your personal financial profile on the other. Here are some tips to get you started in working on the different components of your personal financial plan.

Your goals:

Look at every facet of your life and try to come up with comprehensive goals. These could cover the following aspects:

Intellectual goals.

This could include continued education, whether graduate studies or short courses. You may wish to add accreditation tests that will help further your professional career, or learn new skills to enhance your capabilities. Consider if you would like to venture into new or related disciplines as well. Also think of your educational goals for your children—possibly university education abroad or extra courses.

Professional goals.

If you are employed, think of where you would like to be in the medium and long term. Do not limit yourself to just positions within your organization, but consider what other companies you may want to work for. Also think of other disciplines that you may want to move on to. You may also be thinking of putting up your own business. Include this in this plan.

Lifestyle goals.

This would cover your aspirations on how you plan to live. It includes leisure, travel, and entertainment. Perhaps you plan to celebrate your 25th wedding anniversary or intend to have yearly vacations abroad with your family. There may also be sports that you plan to take up, or hobbies that you would like to pursue.

Relocation goals.

If you intend to move out of the country, this should be part of your personal financial plan.

Going through the list above, think of what you would like to be and what you want to have very soon, in the near future, and in the distant future. These will constitute your short, medium, and long-term plans. Define these by a timeframe – short term could mean the present up to the next three months; medium term could mean the next three years; and long term may mean anytime from five years and above.

Estimate how much you would need to achieve your different goals. For instance, if you plan to buy a car in the next six months, indicate how much you think this would cost.

Your financial profile:

List down your current income streams.

This would include your monthly pay (if you are employed), your earnings (if you have a business), interest or investment income, rental income, and all others as the case may be.

Do an inventory of your assets.

This will include your savings accounts, real estate, cars, insurance plans, shares of stock, your retirement fund, and all others as the case may be.

List down your debt.

This will include your credit card debt, amortizations on real estate or car purchases, and other personal debt that you may have taken.

Examine your expenses.

Based on your past months’ expenses, determine how much you spend on different things: utilities, rental, education, transportation, entertainment, etc. This will be helpful as you make a financial plan that will help you achieve your goals.

Your financial strategy:

Looking at your goals, now expressed in peso terms, against your current financial profile, project how much you need in savings or investments to be able to have these in the future. For this, you would need an investment plan to grow your wealth, and a spending plan, to manage your expenses.

Take note of your current life stage. Your financial strategy is determined by your current life stage—you may have just started working, you may have just had a baby, or you may be just a year away from retirement. This may also determine your risk appetite, which refers to your willingness to invest in high-yielding, but high-risk investment instruments.

Seeing your goals and financial net worth on paper will make it easier for you to design a financial strategy. If you need help in coming up with a financial plan, consult a professional financial planner. Banks and other financial firms would be glad to provide these services to you, and help you on your path to a more secure financial future.

Happy planning!

source: www.abs-cbnnews.com

Top 3 financial moves you should make in 2014

MANILA, Philippines – As rising interest rates and global financial issues loom in 2014, financial advisor Salve Duplito said there are top three financial moves that Filipinos should consider making in the new year.

Rebalance your investments

Duplito said shifting funds to other investments and cash saving instruments depending on your needs is a good idea to start the year.

“If you have short-term needs like tuition, shift your money into cash or near cash instruments like money market funds or time deposits,” she said on ANC’s “On The Money.”

“Make sure you have cash reserved for buying assets when the opportunity looks right,” she added.

Pay off consumer loans

Duplito said paying off consumer loans should be prioritized because now “is the worst time to be in debt.”

“For long-term loans, lock in at the lowest rate possible as interest rates may be on the uptrend,” she said.

Duplito also noted that one of 2013’s black smudge is credit card debt. As of June 2013, Filipinos spent P150 billion using their credit cards.

Make sure you are not under-insured

Lastly, Duplito said you should protect yourself with insurance before investing your money.

But she also stressed to think twice before subscribing to an investment-linked insurance at the danger of under-insuring yourself.

“Rethink your strategy, protection should come first before investing,” she said.

source: www.abs-cbnnews.com