Counting the cost
Article Abstract:
Charges for British personal equity plans (Peps) vary a great deal and high charges can affect investment returns. Actively managed plans that have performed well in the past tend to be more expensive with initial charges that may cost 6% with some 1.5% for the annual management fee. The bid-offer spread for unit trusts also represents a charge. Management fees tend to be lower for investment trusts. Index tracker Peps tend to charge less, as do corporate bond plans.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
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Index-trackers in new price war
Article Abstract:
Prices could drop further for UK personal equity plans (Peps) which track indexes, following the launch of a cheap fund from River and Mercantile. Virgin Direct triggered price competition with the launch of a tracker fund in 1994 and prices have already fallen. Investors should avoid making decisions on grounds of cost alone since performance is also important. They should also check to see whether there are additional charges that may not be immediately obvious.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
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What sort of plan?
Article Abstract:
British investors can choose from a range of types of personal equity plans such as general Peps using collective investment vehicles such as unit trusts. They can also use corporate bond Peps if they need an income, though there is a wide variation in the credit-worthiness of corporate bonds. Single company Peps involve risk since they focus on a particular company, but there is an extra tax allowance for such investments.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
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