Avoid hidden angers in the second-hand market: A new fund that will buy second-hand endowment policies is likely to prove popular with investors. But despite the low-risk tag, there could be pitfalls in this market
Article Abstract:
Barclays Global Investors has made its third TEP fund launch, which is forecast to produce annual growth of 11.1%. However it may not be a good time to invest in endowments, which are primarily investment vehicles. Many policies were taken out together with mortgages, but their popularity as home-loan repayment vehicles had declined because of warnings about maturity values. An endowment can be cashed in early by surrendering it to the life insurer. TEP dealers will sell the policy on the second-hand market, probably earning more cash than offered by the insurer.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1999
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Investments in a different class: Despite their complexity, split-capital investment trusts continue to be much more popular than their conventional stablemates
Article Abstract:
Split-capital investment trusts are currently worth 10% of the 60 billion pounds sterling investment trust sector, and they raised 800 million pounds sterling in 1998. Splits are similar to conventional investment trusts, pooling investors' money to purchase asset portfolios. However they offer more than one class of share, with each class providing a different type of investment return. This is determined by interest rate expectations, market perception of risk, performance of the assets and the time the trust has left to run before share redemption.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1999
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Trusts leave learner investors in the lurch: warants are a risky proposition for first-timer investors, and it's easy to lose money on them if you're not in the know
Article Abstract:
The Stock Exchange believes that many investors have converted investment trust warrants that are 'out of the money' into shares. It feels that companies issuing warrants should notify holders for dates on which they can be exercised. However trust companies feel restricted in offering guidance to warrant holders under Stock Exchange rules that prevent them giving advice on their own securities.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
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