Article Abstract:
Many UK unit trusts and personal equity plans have advertised funds with no initial charge. There may be a reduction in charges in order to attract higher sales volumes, but investors should seek more information on charges before making a commitment. Some companies are increasing their management charges to offset a reduction in initial charges. There is also a different between the cost of units sold to the public and the price which investors obtain when they sell units. Investors should inform themselves about exit charges, annual charges and bid and offer prices.
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Article Abstract:
Friends Provident Stewardship unit trust is an ethical trust managed by Richard Lowman, who has been manager since 1984. He seeks growth stocks in companies conforming to ethical criteria. Because of the trust's ethical stance it has avoided many larger companies which have seen stock price rises. The trust performs well for an ethical trust and has a lower volatility than average. There are concerns arising from the rapid growth of the trust which means that it is more difficult to select suitable investments.
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Article Abstract:
UK unit trust managers are moving into investment trusts following changes in rules affecting personal equity plans (Peps). The changes meant that all the allowance could be invested in investment trusts, while investors started to become reluctant to pay unit trust charges. Managers have been able to run parallel investment trusts and unit trusts, while investors have greater choice in investment trusts. Some unit trust charges are less than some investment trusts.
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