Abstracts » Business

Fewer launches but new focus is on Peps

Article Abstract:

The UK investment trust industry has seen a quiet 1995 in relation to 1994, and launches have been fewer. There have been 11 launches in the first three quarters of 1995 compared with 45 launches for full-year 1994. Launches have tended to focus on personal equity plans, income growth and specialist trusts involving small firms or particular sectors. Venture capital trusts offer tax savings to UK investors and the first such trusts were launched in Sep 1995.

Investment Companies, Mutual funds

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Corporate bond Peps

Article Abstract:

UK corporate bond personal equity plans (Peps) offer tax-free returns and risk levels are relatively low. Investment levels have not been as high was was expected when they were launched in Jul 1995. Managers are hoping for an increase in investment as tax exempt special savings accounts (Tessas) mature in 1996. They are seen as suitable for investors who have accumulated savings and seek to gain an income. Risk levels are lower than for most types of Pep.

Tax planning, Bonds, Bonds (Securities)

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Corporate bond Peps are coming your way: corporate bond Peps should prove to be an attractive additional option for income-seeking investors but beware, these plans are not risk free

Article Abstract:

Corporate bond personal equity plans (Peps) have finally been given the go ahead, offering yields of about 8% tax free, compared to 4-6% offered by the best instant access accounts at building societies. Most investors are expected to choose managed unit trust bond funds rather than purchasing bonds in small lots.

Investment Funds & Trusts, Planning, Purchasing, Personal finance, Corporate bonds

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