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'Our low-cost investment is creating a catalyst for the industry' – Wealth Professional



But, they’re also part of a global trend to reduce mutual fund fees and expense ratios around the world, and he’s hoping to see more of that – given that Vanguard’s fees are “roughly a third of what you’d see in the industry in categories where we compete today.”

Huver attributed that to Vanguard’s structure and history. Its parent company, Vanguard Group, is a mutually-owned company in Canada. Its investors own it, so build economies of scale and reinvest in the business to return lower expense rations to the fund shareholders. It’s also the world’s third largest active manager, so has brought its best managers and flagship funds to Canada. 

“Because of our structure and our global scale, we are able to provide these known institutional mangers and mandates at institutional pricing for advisors and retail investors,” said Huver. “That’s really a differentiator for us in the marketplace.”

Vanguard entered the market with its ETFs and passive mutual funds, offering them at lower expenses ratios, and Huver said it has seen competitors move toward lower costs. It’s now taking the same approach with its active funds.  

“We think this is really disruptive to the market here in Canada and would expect to see more and more competitors move in this direction as well,” he said. “It’s great for the investors because they keep more of their returns, and that compounds over time and creates a better investment outcome.”

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Aberdeen Asia-Pacific Income Investment Company Limited Announces Timing of Re-Domiciliation, Return of Par Value and Change in Investment Policies – Yahoo Finance



TORONTO, ON / ACCESSWIRE / October 26, 2021 /Aberdeen Asia-Pacific Income Investment Company Limited (TSX:FAP) (the “Company“), a closed-end investment company trading on the Toronto Stock Exchange, announced today an update on the Company’s transition of domicile from Cook Islands to Singapore, and changes to the Investment Policies in support of the Company’s investment objective.

Timing of Re-domiciliation
The Company’s re-domiciliation to Singapore will become effective upon the transfer from Cook Islands on or about December 16, 2021, subject to regulatory approvals. Upon effectiveness of the Singapore re-domicile, the Company will be re-named abrdn Asia-Pacific Income Fund VCC. Henny Muliany and Hugh Young, will also join the Board of Directors (the “Board”) of the Company as Singapore resident, qualified representatives of the Company’s investment manager, Aberdeen Standard Investments (Asia) Limited (the “Investment Manager”).

This announcement has no effect of the annual redemption feature for the Company announced in August. Further details of the annual redemption will be provided in February 2022, if the parameters set forth in the Company by-laws are met.

Shareholders holding physical share certificates will receive a letter of transmittal to exchange their share certificate(s) for direct registration advice(s) (“DRS Advices”). Under the direct registration system, or DRS, shares will be registered in a shareholder’s name and held electronically in the Company’s records maintained by its transfer agent, Computershare Trust Company of Canada. DRS may also streamline participation in an annual redemption. Existing DRS holders will be mailed a new DRS Statement reflecting the Company’s new name and ISIN/CUSIP number.

Return of Par Value
The Board has determined that 100% of distributions paid in the 2021 calendar year will be a return of paid-in capital out of par value under Cook Islands law. This reduction of par value represents an opportunity for the Company to make a tax-efficient distribution to Canadian taxable shareholders.

Distributions made on the shares held by a person resident in Canada for the purpose of the Income Tax Act (Canada) who holds such Shares as capital property (a “Canadian Holder”) which constitute a return of capital out of par value of the shares do not constitute dividends. Amounts so received generally would not be included in the Canadian Holder’s income but would generally be deducted in computing the Canadian Holder’s adjusted cost base of the shares. All other distributions will be dividends treated as income for Canadian income tax purposes.

The Board also declared a monthly distribution of CAD 2.25 cents per ordinary share payable on November 30, 2021 to all ordinary shareholders of record as of November 19, 2021 (ex-dividend date November 18, 2021), which will also be classified as a return of capital out of par value. Since Singapore legislation does not provide for paid-in capital or par value, the distribution paid in November 2021 will be the final return of par value capital of the shares.

Information for tax reporting purposes will be provided to the Company’s shareholders on a Form T5 in February of 2022.

Changes to Investment Policies
The investment objective of the Company is to obtain current income and achieve incidental capital appreciation. Upon the recommendation of the Investment Manager the Board has adopted changes to certain of the Company’s investment policies.

The Investment Manager believes that the approved changes, as set out below, will enable the Company to deliver higher earnings in line with the Company’s distribution policy and stronger risk adjusted returns through the re-orientation of the Company’s portfolio to higher yielding markets, while also providing greater portfolio diversification by country and company exposures.

The changes adopted by the Board are summarized in the table below.

Current Policy

Amended Policy

The maximum country exposure to any one Asia Pacific Country (other than South Korea) is limited to 20% of the Company’s total assets and the maximum currency exposure to any one Asia Pacific Country currency (other than the South Korean Won) is limited to 20% of the Company’s total assets. The maximum country exposure for South Korea is limited to 40% of the Company’s total assets, and the maximum currency exposure for the South Korean Won is limited to 25% of the Company’s total assets.

The maximum country exposure to any one Asia Pacific Country is limited to 30% of the Company’s total assets and the maximum currency exposure to any one Asia Pacific Country currency is limited to 30% of the Company’s total assets.

The Company may invest up to 50% of its total assets in Asia Pacific debt securities rated by Standard & Poor’s Rating Group, Moody’s Investors Service, Inc. or another nationally recognized statistical rating organization, or judged by the Manager to be, below investment grade at the time of investment, and the Company may invest up to 10% of its total assets in Asia Pacific debt securities rated by Standard & Poor’s Rating Group, Moody’s Investors Service, Inc. or another nationally recognized statistical rating organization, or judged by the Manager to be, below B- at the time of investment.

The Company may invest up to 60% of its total assets in Asia Pacific debt securities rated by Standard & Poor’s Rating Group, Moody’s Investors Service, Inc. or another nationally recognized statistical rating organization, or judged by the Manager to be, below investment grade at the time of investment, and the Company may invest up to 15% of its total assets in Asia Pacific debt securities rated by Standard & Poor’s Rating Group, Moody’s Investors Service, Inc. or another nationally recognized statistical rating organization, or judged by the Manager to be, below B- at the time of investment.

Important Information
Past performance is no guarantee of future results. Investment returns and principal will fluctuate and shares, when sold, may be worth more or less than the original cost. Current performance may be lower or higher than the performance data quoted. NAV returned data includes investment management fees, custodial charges, bank loan expenses and administrative fees (such as Director and legal fees) and assumes the reinvestment of all distributions. The Company is subject to investment risk, including the possible loss of principal. Total return based on net asset value reflects changes in the Company’s net asset value during each period. Total return based on market price reflects changes in market value.

Aberdeen Standard Investments (“ASI”) is the registered marketing name in Canada for the following entities, which now operate around the world under the abrdn brand: Aberdeen Standard Investments (Canada) Limited, Aberdeen Standard Investments Luxembourg Standard Life Investments Private Capital Ltd, SL Capital Partners LLP, Standard Life Investments Limited, Aberdeen Standard Alternative Funds Limited, and Aberdeen Capital Management LLC. Aberdeen Standard Investments (Canada) Limited, is registered as a Portfolio Manager and Exempt Market Dealer in all provinces and territories of Canada as well as an Investment Fund Manager in the provinces of Ontario, Quebec, and Newfoundland and Labrador.

Closed-end funds are traded on the secondary market through one of the stock exchanges. The Company’s investment return and principal value will fluctuate so that an investor’s shares may be worth more or less than the original cost. Shares of closed-end funds may trade above (a premium) or below (a discount) the net asset value (NAV) of the company’s portfolio. There is no assurance that the Company will achieve its investment objective. Past performance does not guarantee future results.

Information in this news release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. Implicit in this information, particularly in respect of future financial performance and condition of the Company, are factors and assumptions which, although considered reasonable by the Company, Aberdeen Standard Investments (Canada) Limited, Aberdeen Standard Investments Inc., and/or Aberdeen Standard Investments (Asia) Limited, as applicable, at the time of preparation, may prove to be incorrect. Shareholders are cautioned that actual results are subject to a number of risks and uncertainties, including the completion of the proposed Re-domiciliation and the anticipated benefits of the Re-domiciliation, general economic and market factors, including credit, currency, political and interest-rate risks and could differ materially from what is currently expected. The Company has no specific intention of updating any forward-looking information whether as a result of new information, future events or otherwise.

If you wish to receive this information electronically, please contact

SOURCE: Aberdeen Asia-Pacific Income Investment Company Limited

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Investment Calculator: Can You Meet Your Goals? – Forbes Advisor – Forbes



Are you on track to achieve your investing goals? Plenty of factors go into understanding whether you’ll be able to hit your targets, including your contribution rate, rate of return, taxes and inflation, among others. Forbes Advisor’s investment calculator is designed to help you see whether you’re making the right moves to reach your investing goals.

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Investment Calculator

Below our investment calculator, you can find helpful explanations of the data we need, instructions on how to get the most from the calculator and answers to common questions.

How to Use This Investment Calculator

You’ll want to update our defaults with information that matches your own investment goals and financial situation. Here are more tips to help you get the most out of this calculator.

Include Your Income Tax Rates

While you may not like to think about taxes, you’re almost certainly going to lose some of your investment earnings to Uncle Sam. That’s why it’s helpful to include your federal, state and local tax rates in any investment growth calculations, to get a more realistic picture of what you’ll need to reach your goals.

If you aren’t sure which tax bracket you’re in, check out the federal tax guidelines. Not all states or local governments tax investment earnings, but if yours does you’ll want to include their tax rates—and see whether you’re able to deduct state taxes on your federal return.

To keep things simple, this calculator assumes that you’re cashing out the gains you make each year. You’ll then owe taxes on these earnings based on your current income tax rate.

Investing is a long game, and you shouldn’t cash out every year. That lets you benefit from long-term capital gains tax rates, which are lower but are only available if you hold investment for at least a year.

It’s also important to consider tax rate if you decide to hold your investments in a tax-advantaged retirement account, like an individual retirement account (IRA) or 401(k), which allow you to avoid paying taxes on the earnings you make within the account.

This calculator shows the balances you might have in a taxable account as well as a tax-advantaged account to illustrate the great savings you can accrue with tax-advantaged accounts.

Consider the Role of Inflation

Inflation is when prices rise across the economy and eat away over time at the purchasing power of your dollars. Preserving and growing your purchasing power is one of the main reasons to invest in the first place.

Between 1925 to 2020, the Consumer Price Index (CPI), a common measure of U.S. inflation, rose on average 2.9% each year. But the inflation rate fluctuates constantly, and some years have seen astronomically high levels of inflation, like the 13.5% rate seen in 1980.

Read more: Why Is Inflation Rising Right Now?

By clicking “View Report,” you can see how much your investment’s future value would buy with today’s dollars. This may help you figure out if your current contributions will have you on track based on the current cost of your goals.

Make Your Deposits as Early as Possible

Time in the market is one of the most important factors in successful investing because it gives your money longer to compound and grow over time. By default, this calculator assumes that you’re making your contributions at the end of whatever cadence you decide to contribute.

For example, if you make monthly contributions, our calculator factors your investment growth based on deposits at the end of each month. But waiting even that small amount of time can cost you big over time.

Check the “Make Deposits At Beginning of the Period” box to compare how much more you might have if you simply invested your money as soon as you could each period. Over long periods of time, the differences can really add up, and that’s yet another argument for starting to invest as early as possible.

What Kind of Investment Account Do You Need?

There are two main types of investment accounts: taxable accounts and tax-advantaged accounts. The distinction is important because you may be able to deduct any contributions you make using a tax-advantaged account, like a 401(k) or IRA, and you’ll also generally be able to postpone or avoid paying taxes on any investment gains that occur while your money remains in the account.

This calculator presents both scenarios—investing in a taxable or a tax-advantaged account—so you can see the impact choosing either type might have on your returns.

Note, however, that just because you might gain more from a tax-advantaged account doesn’t mean it’s always the right choice for your dollars. If you’ll need the money before retirement, for instance, you won’t want to lock it up in a 401(k) or IRA, which may charge penalties for early withdrawals. Instead, you’ll want a taxable brokerage account that you can tap at any time.

Investment Goal Calculator FAQs

How Can I Start Investing?

You can start investing the old fashioned way, with a brokerage account, or with an investment app. You’ll typically need to provide some personal information, like your name, age, address, Social Security number and income, and hook up a bank account. Be sure to check out our lists of the best brokerages and best investment apps for tips on where to get started.

How Much Money Do I Need to Start Investing?

You can start investing with $5 or less through some major brokerages, like Charles Schwab and Fidelity, as well as micro-investing apps, like Stash and Robinhood. You may also consider a robo-advisor, which will design and manage a portfolio of low-cost, diversified investments for you.

What Should I Invest In?

You’ll likely want to invest in a diversified portfolio of many investments, like index funds and exchange-traded funds (ETFs) that aim to copy the performance of major market indexes, like the S&P 500.

This helps you invest safely by not putting all of your investing eggs in any one basket. These index funds also tend to be the lowest cost investments you can find and historically have offered the same, if not better, returns than funds run by professional investors or stocks picked by individual investors.

How Can I Make Money With Stocks?

The key for most people making money with stocks is investing in a diversified portfolio of index funds and ETFs for the long term. That means years, if not decades. This gives you time to recover from any short-term market dips you may experience.

If you don’t have at least a few years on your investing timeline, you may be better served by a high-yield savings account or certificate of deposit (CD).

What Kind of Investment Account Should I Use?

Not all investment accounts are created equal. Different kinds are better suited for different goals. For retirement savings, you’ll probably want an IRA or 401(k) to take advantage of their tax benefits. Similarly, if you’re aiming to prepare for your child’s college tuition, a tax-advantaged 529 may be helpful. But if you have another goal in mind, particularly one that you plan to accomplish before you reach retirement age, you may turn to a taxable investment account.

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Saudi Arabia to set up investment fund for carbon capture –



The kingdom will also back a plan to feed hundreds of millions of people by providing clean cooking fuels, Crown Prince Mohammed bin Salman said in Riyadh on Monday at a forum attended by heads of state.

By Bloomberg

Saudi Arabia said Middle Eastern economies will be boosted by efforts to cut planet-warming gases and announced a fund to invest in carbon-capture technology.

“Climate change is an economic opportunity for individuals and the private sector,” Crown Prince Mohammed bin Salman said in Riyadh on Monday at a forum attended by several heads of state. Reducing emissions will “create jobs and strengthen innovation in the region.”

The kingdom will establish a fund to improve carbon sequestration and back a plan to feed hundreds of millions of people by providing them clean cooking fuels, Prince Mohammed said. The two initiatives will cost 39 billion riyals ($10.4 billion) and Saudi Arabia will contribute 15%.

The government will also open regional centers for early warning of storms, for sustainable fishing and for cloud seeding.

On Saturday, the prince pledged that Saudi Arabia would neutralize greenhouse gas emissions within its borders by 2060. It marked a seismic shift for the world’s biggest oil exporter, though officials included plenty of caveats and emphasized that Saudi Arabia and others would need to pump crude for decades to come.

The kingdom will try to develop facilities that capture and store carbon emissions as part of that commitment. The technology will be used for the production of blue hydrogen, a fuel made from converting natural gas and seen as crucial to the green-energy transition.

The net-zero goal “is a major step forward,” U.S. President Joe Biden’s climate envoy, John Kerry, said earlier on Monday. “It’s critical to have one of the world’s largest producers of fossil fuels step up at a moment when all countries, no matter their circumstances, need to come together.”

Other leaders at the Riyadh conference emphasized the need for governments to accelerate efforts to slow climate change.

“Just in the last two years we have seen fires in Siberia, in California, in the Mediterranean — unprecedented,” Pakistan’s Prime Minister Imran Khan said. “I hope that collectively we take this challenge much more seriously than we have done.”

Pakistan is stopping all coal projects and wants to make renewables 60% of its energy mix by 2030, he said.

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