Locking into high interest rates: how much and for how long
Article Abstract:
Investment portfolios should contain fixed interest investments in order to lock in high interest rates to hedge against unfavorable interest rate fluctuations. The UK likely will experience falling interest rates over the next two years, necessitating diversification into fixed interest investments by asset managers in order to lock in high rates. Options for fixed rate, fixed term investments available in the UK are guaranteed income or growth bonds, lump sum investments offering a fixed rate of income over a predetermined period; and National Savings Certificates, a tax-free, 9.5% security that must be held for a full five years. Tax exempt special savings accounts offer a variable rate, fixed term investment, while fixed-rate, variable term investments such as gilts, index-linked gilts, and bank and building society deposit accounts offer even greater flexibility.
Publication Name: The Accountant's Magazine
Subject: Business
ISSN: 0001-4761
Year: 1990
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Starting to clean up
Article Abstract:
Interest in ethical and environmental investment is growing. The Ethical Investment Research Information Service reports that investment in ethical and environmental trust funds rose to 321.3 pounds sterling in 1992, which is 17% more than the amount invested in these funds in 1991. Investors in ethical or environmental funds, however, encounter one significant problem, that of determining which policy is being pursued on their behalf. This difficulty stems from the lack of a general agreement of what constitutes ethical or environmental soundness. There are two approaches to stock selection that fund managers generally use. The 'negative' approach wherein companies engaged in ethically or environmentally unsound practices are not selected. The 'positive' approach involves selecting firms that meet a given set of ethical or environmental criteria.
Publication Name: The Accountant's Magazine
Subject: Business
ISSN: 0001-4761
Year: 1992
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Direct conflicts
Article Abstract:
The recession, weather-related claims and increasing competition continue to put strains on the reserve funds of UK insurance companies. As a result of these losses, customers are getting more exposed to insurance-related risks. These uncertainties include the risk of their insurers going insolvent, premium rates being raised and claims being contested. Consumers seeking value for their money have some options to consider. Motor insurance policy and home-and-contents policy buyers may choosefrom either hiring a broker or directly purchasing from the insurers. The RoyalBank of Scotland, General Accident, Churchill Insurance and Royal Insurance alloffer insurance through the telephone. A third option for buyers of home and contents insurance is to purchase from mortgage lenders. The benefits and downsides of these options are discussed.
Publication Name: The Accountant's Magazine
Subject: Business
ISSN: 0001-4761
Year: 1993
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- Abstracts: Pricing options with extendible maturities: analysis and applications
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