Offshore investors drown in charges

Article Abstract:

Offshore funds offer opportunities for UK investors such as access to esoteric investment vehicles, and tax advantages, but they also involve risks. One such risk is a lack of transparency over charges. Hidden extras can include administration and custodianship fees, and total expenses may be nine times the charge actually quoted. Regulation is also less rigorous than regulation of funds in the UK, and compensation schemes vary according to the center used.

Economic aspects, Prices and rates, Personal finance

---

Worth a close look

Article Abstract:

Interest rates for UK savers have dropped and could drop further in Jul 1996. A unit trust has been launched by Close Brothers, a merchant bank, which is designed to function in a similar way to a savings account with 90 days notice. Many investors can gain a tax-free income from this product since annual income is classified as a capital gain for tax purposes. The product is less suitable for non-tax payers and investor seeking capital growth.

Close Brothers Group PLC

---

Charges cloud tax-free waters: the lure of tax-free returns is hard to resist but Peps are not always cost free. Basic rate taxpayers would be wise to take account of the effect of management charges

Article Abstract:

The majority of Pep funds are in unit trusts and there has been a move towards making pepped unit trusts better value than those outside a Pep.In some cases the initial charge has been lowered, with the introduction of an exit charge which reduces to nothing after a fixed term. There is no exit charge for medium to long term investors.

Similar abstracts:

• Abstracts: Brains and Trains. Worth the wait. Digging in China: Western architects trade anecdotes about working in the wild east
• Abstracts: Cash cure for nervy investors. Risk-free at a price. Prolific hype
• Abstracts: TAC turns retailers into tech whizzies. Non-high tech publishers stake place on web. Doctors call for advice; firm markets legal hotline
• Abstracts: How to decide format for posting catalogs. Bank on it; American Banker Online eyes profits with pay model
• Abstracts: Never mind the reality, feel the illusion. The bookworm's alternative. Price too high for BAe

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.