{"text":[[{"start":8.95,"text":"BlackRock’s Rachel Lord has warned that some €14tn of retail money in Europe is sitting in deposits for the benefit of banks, leaving individuals potentially missing out on greater returns in the markets."}],[{"start":23.85,"text":"Lord, the head of international at BlackRock, the world’s largest asset manager, said that Europe needs to address the issue of mounting cash piles and under-investment in capital markets, noting “how do you take those savings and channel them into productive investments?”"}],[{"start":39.400000000000006,"text":"“Across all of Europe, there’s around €14tn of household savings currently in cash deposits . . . just in cash deposits at the bank.”"}],[{"start":48.00000000000001,"text":"She added that “the last time I looked, the net interest margin . . . is actually pretty favourable for, not the depositor, the deposit taker,” adding that banks make “a lot of money out of that”."}],[{"start":59.25000000000001,"text":"Her comments come as policymakers across Europe attempt to encourage more individuals to shift their savings into investments, to help boost local economies and pave the way for better retirement outcomes. Governments are concerned that not enough people will have sufficient pension pots. "}],[{"start":76.05000000000001,"text":"A recent study by Barclays found that Britons had more than £600bn sitting in excess cash that could be generating higher returns in other assets. "}],[{"start":85.05000000000001,"text":"Research by investment site AJ Bell last year showed that a £1,000 investment made in April 1999 in a tax-free Isa would now be worth £6,285 if invested in a typical North America fund, compared with £2,079 held in the average cash Isa. UK equity funds would have grown to £3,787. "}],[{"start":110.80000000000001,"text":"The UK government has backed the rollout of a retail investing campaign in a bid to raise awareness of the benefits of investing. "}],[{"start":119.60000000000001,"text":"Policymakers are also attempting to tackle the issue. The Financial Conduct Authority recently launched its so-called targeted support regime, making it easier for companies to offer low-cost or even free financial guidance, so people do not have to pay for expensive, full-blown financial advice. "}],[{"start":137.8,"text":"Lord said that she was “starting to see momentum” in the number of UK investors shifting from savings to markets, in part because of the increasing emergence and growth of digital investment sites “that are taking off”. These platforms make it cheaper and easier for people to invest directly rather than relying on a financial adviser. "}],[{"start":157.45000000000002,"text":"Younger generations in particular are keen to dabble in investments, she said. “It’s normal now for people in their early twenties . . . this is incredibly empowering and I think this is incredibly good for Britain.”"}],[{"start":169.45000000000002,"text":"Compared with other countries in Europe, the UK has a lower level of investing in exchange-traded funds — a core part of BlackRock’s business."}],[{"start":177.85000000000002,"text":"ETFs are more popular among retail investors in Germany, for example, where nearly a third of all Germans invest in these products, she said. In the UK, this stands at about 7 per cent."}],[{"start":190.15000000000003,"text":"In another attempt to encourage savers to invest, the UK government announced in last November’s Budget that it would cut the annual cash Isa allowance for under 65s from £20,000 to £12,000. "}],[{"start":203.85000000000002,"text":"The total cap across all Isa products — including cash and stocks-and-shares Isas — remains at £20,000, meaning individuals could put the maximum £12,000 into a cash Isa and the remaining £8,000 into the stocks-and-shares product."}],[{"start":219.90000000000003,"text":"However, critics have argued that reducing the cash allowance will not necessarily lead to more people investing, arguing that cash Isa products are often the first step to moving into stocks-and-shares Isas. "}],[{"start":241.50000000000003,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1778308147_7085.mp3"}