Infectious investments

Article Abstract:

Open-ended investment companies (Oeics) are becoming increasingly important in the United Kingdom and are replacing unit trusts which are being grouped together to form part of Oeics. There is a risk of cross-contamination whereby the problems of one sub-fund can affect the remainder of the sub-funds in the Oeic, which did not occur when they were separate unit trusts. There is also a more permissive regime for charges for Oeics. It is unclear whether Oeics will actually be more risky or more expensive compare with unit trusts.

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Who's afraid of the big bad fund?

Article Abstract:

Large personal equity plan (Pep) funds may not perform well and some major UK banks have funds that rank among the 10 worst of a leagure table of 92 funds. These funds attract investors and investors are not keen to move from poorly performing funds. Moving can involve charges, and investors need to evaluate funds before deciding whether to move. Funds geared to the mass market tend not to perform well. Funds may also cease to perform well after attracting new investment due to past good performance.

Investment analysis, Securities analysis

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Fund merger frenzy takes off

Article Abstract:

UK unit trusts and investment trusts are beginning to undergo a period of mergers and acquisitions. There is duplication of funds and mergers allow for some rationalization. This may take place with or without a takeover with companies merging trusts. Investors may find that their fund changes and they can no longer rely as much on past performance as a guide. Expertise may be diluted after a merger, and funds may grow too rapidly.

Acquisitions and mergers

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