Abstracts » Business

Picking your Pep manager

Article Abstract:

UK investors in personal equity plans (Peps) tend to be invested in managed plans with managers selecting stocks for the investors. There are several hundred managed plans available, and investors should consider a number of factors. These include the amount of income desired, and the trade-off between capital growth and income. Investors should also examine the performance of the fund, and how consistent this has been. Charges can affect returns on investment, and regular savings schemes can be effective.

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Launches

Article Abstract:

The number of personal equity plans (Peps) available for UK investors is increasing, and there are 1,190 schemes listed in the Chase de Vere guide to UK Peps. There are 117 corporate bond Peps in the guide and most have come from existing managers of Peps. These Peps were launched from Jul 1995, and are suitable for investors seeking an income. There is also an increasing number of corporate sponsored Peps which are geared toward shareholders and employees of the companies involved.

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What to do next

Article Abstract:

UK savers with mature tax-exempt special savings accounts (Tessas) cannot put all the interest they have accrued into a new Tessa so should consider other forms of saving that offer tax advantages. Personal equity plans (Peps) are both flexible and are not taxed. They can offer higher levels of growth and the funds do not have to be committed for a set period. They do involve more risk than a Tessa. Corporate bond Peps may be especially suited to investors moving from Tessas.

Savings accounts

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