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Corporate comfort

Article Abstract:

United Kingdom corporate bond personal equity plans (Peps) can provide a tax-free income, and they have also offered capital gains in the year to April 1998. This level of capital gains is unusual and is linked to preparation for European monetary union (Emu) which has led to a drop in long-term interest rates, though short term rates have been raised to control inflation. Charges tend to be deducted from income, and they can affect capital growth if they are taken from capital.

Personal Financial Mgmt, United Kingdom, Interest rates, Bonds, Bonds (Securities)

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The all-or-nothing rule starts to hurt

Article Abstract:

Investors in personal equity plans (PEPs) wishing to transfer some of their holding from one manager to another, may find that the investment cannot be split. Some PEP managers bundle each year's investment into one holding for ease of administration and the UK inland Revenue requires whole PEPs to be transferred. Managers offering unbundled PEPS include Fidelity, Virgin Direct and Barclay Unicorn.

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Options for dissatisfied investors

Article Abstract:

Holders of personal equity plans (PEPs) who are unhappy with their performance should find it relatively easy and inexpensive to switch to another plan manager. Currently, transfers are the result of performance considerations or because of unsatisfactory service. Investors planning to switch managers should closely scrutinize the costs involved.

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