A capital way for funds to charge

Article Abstract:

UK income fund managers have been allowed to charge to capital since 1994. Some 40% of UK fund managers are using this method, according to Fund Research's managing director, Peter Jeffreys. Those who favor this method argue that the fees will be outstripped by the growth of capital, and higher yielding funds are able to use equities and seek capital growth if they have more freedom in how they achieve higher yields. Investors cannot easily make comparisons between income funds if some funds charge fees to capital.

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Looking for backbone

Article Abstract:

United Kingdom investment trusts are undergoing a change, and could become more attractive to investors, or could undergo a decline. The Association of Investmnent Trust Companies is carrying out an advertising campaign which aims to promote investment trusts as a cheap way of gaining exposure to the stock market. Investment trusts have tended to see discounts widen, and investors could benefit from a narrowing of discounts. Investment trusts can also enter investment areas that are closed to unit trusts.

Author: Courtenay, Adam
Portfolio Management, United Kingdom

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Get the measure of tech funds

Article Abstract:

There is concern that some technology funds may employ unrealistic benchmarks as a way of pushing up their fees. This is assessed using Henderson Technology and Finsbury Technology as examples.

Author: Courtenay, Adam
Usage, Benchmarks, Benchmarking

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Subjects list: Prices and rates, Investment companies, Mutual funds
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