Beware the fall of a House of Cards

Article Abstract:

Split capital cross-holdings offer an additional layer of individual investment diversification, as the investment trust being purchased will have invested in many different companies. However, the investor will be deprived of diversification in terms of management house style. It is important for investors to be aware of the potential difficulties linked with cross-holdings in split capital investment trusts, particularly the possibility of the failure of one trust having a negative impact on the others in the circle.

Investments

---

Are building society prophets getting it wrong on profits?

Article Abstract:

Research indicates that keeping savings or a mortgage with a mutual building society does not always bring greater savings than the money obtained through the short-term gain of a windfall if the building society abandons mutual status. Mutuals often offer higher interest rates than banks, but it appears that the money gained from investing a windfall payment over a long period can be greater than the money saved from higher saving or borrowing interest rates offered by a building society that does not demutualize.

Marketing procedures, Personal Financial Mgmt, Savings & Loan Assns, Savings Institutions, Prices and rates, Personal finance, Savings and loan associations

---

A little cross-investment can cause a large conflict of interest

Article Abstract:

Cross-investment by investment trusts raises a number of significant issues. Some investment trusts may have large holdings in their parent companies, and some observers believe that this can increase risk because of reliance on a single company. Further problems can arise when split capital investment trusts invest in each other, forming a 'virtuous circle' of investment. In such cases, the failure of one fund, or the performance of the sector of funds as a whole, could create a downwards spiral.

Financial management, Investment Companies, Open-End Investment Funds

Similar abstracts:

• Abstracts: Please, no more fatal illusions. Freedom flickering in a tiny corner of Kosovo. Kosovo: journey to the heart of a ravaged people
• Abstracts: We must learn the secret of living together. Smoking is still so cool. Smoking out the hypocrites
• Abstracts: Pregnant and told to go at gunpoint. Trapped in Europe's Great Terror. They showed patriotic movies on TV as bombs rained on the fatherland
• Abstracts: Sorry, comrades, the Serbs aren't nice old Communists. Can we win from the air?
• Abstracts: Fatherland sees truth through a looking glass. City where everything has become degraded

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