Abstracts » Business

Launches and charges

Article Abstract:

Newcomers in the field of UK personal equity plans include Virgin Direct, which has been successful in attracting funds. The Vigin Direct Pep is a tracker fund and thus has generated new interest in this type of investment vehicle. Charges are sometimes taken off capital rather than coming from income and this has led to a debate which is important for equity income and corporate bond Peps where income is the main concern. Charges are usually levied on income.

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Financial planning

Article Abstract:

UK Personal equity plans (Peps) can play a major role in financial planning, for example with interest-only mortgages. Peps can replace endowment policies since they offer greater flexibility and tax efficiency. Peps can be cashed to pay part of mortgage loans. They can help homeowners with more mortgage debt than the value of their property. Sellers of endowment policies gain high commissions, and this is one reason for their being more popular than Peps.

Finance, Mortgages

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Self-select plans

Article Abstract:

UK self-select personal equity plans (Peps) are suitable for active investors who seek to choose their own investments. Single-company Peps may have low costs but involve risking savings in the fortunes of a single company. Investors should assess annual management fees and initial charges and other charges such as transferring plans and commission for share dealing. Peps can be cashed in but cash cannot be used over the long term as a tax shelter.

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