Costs set to soar for investment trusts
Article Abstract:
United Kingdom investment trusts face widening discounts and are having to carry out expensive restructurings. Investment trusts offer low charges, partly becasue they do not usually pay commission to intermediaries, and because they do not have to invest in marketing since they are closed-end funds. Discount volatility has become a problem, and the AITC, or trade association, aims to attract more private investors in order to reduce levels of volatility. This plan involves a campaign costing 16 million pounds sterling paid for by AITC members and ultimately by investors.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1999
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Repay the Pep way(using personal equity plans (Peps) to repay mortgages; includes related performance tables for Peps)
Article Abstract:
United Kingdom personal equity plans (Peps) have become an acceptable way of repaying an interest-only mortgage, which was previously paid off mainly using endowment policies. Both low-cost endowment mortgages, and Peps may not provide a large enough fund to repay the mortgage after the term has ended, and investors have to assess the growth rates of their funds. Peps are more flexible and tax efficient than endowment mortgages, and they may allow life cover to be purchased more cheaply. Pep plans may involved higher annual charges, which could affect returns.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
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Trusts put their faith in buy-backs
Article Abstract:
United Kingdom investment trusts could be helped by stock buy-backs. Buybacks can reduce a surplus of stock and enhance a fund's net asset value. Buy-backs do not always achieve this, and buy-backs are costly and treated like dividends by the tax authorities. Some buy-backs may be interpreted as a panic measure, so will have little impact. Other buy-backs are more successful, as is likely to be the case with Edinburgh Dragon's buy-back plans. Buy-backs will begin to address problems faced by UK trusts, but will not provide a complete solution.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
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