Abstracts » Business

Still fighting over fund charges

Article Abstract:

The UK Office of Fair Trading (OFT) has rejected plans by the Personal Investment Authority (PIA) for rules governing the disclosure of charges by unit trusts. The OFT argues that investors would not easily be able to compare charges of life insurance products and unit trust products. Disclosure of unit trust charges was to have been implemented at the beginning of 1995, and looks unlikely to be implemented before the start of 1997. Investors may have difficulties in comparing unit trust charges due to different methods of charging.

Laws, regulations and rules, United Kingdom. Personal Investment Authority

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Fighting for new funds

Article Abstract:

New investment trusts are likely to be issued in large numbers in the UK in 1996. Launches are planned by a number of companies including Perpetual and M and G, both geared to providing a higher income. Existing trusts may be more attractive than new issues, argues Peter Walls from Credit Lyonnais Laing. M and G is not charging initial fees, but does charge annual fees, and the performance should also be assessed. M and G is seeking recovery investments, while Perpetual is seeking capital growth as well as a good yield.

Management, M and G Group

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Let closed-end funds take the strain

Article Abstract:

There is a wide range of investment trusts on offer for UK investors, and slecting an investment trust is not easy. Investors have to assess a number of factors such as asset allocation, manager skills, gearing, and the impact of warrants. Managers can add value, as is shown by the case of Capital Gearing a small trust which has performed well. Broad exposure can be gained from the Investment Trust of Investment Trusts, set up in Feb 1995.

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