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IFAs reassure split-cap investors in AITC guide

The Association of Investment Trust Companies has produced a consumer guide highlighting the views of key IFAs on how investors should be responding to the splitcap controversy and volatile stockmarkets.

The main aim of the guide is to encourage investors in split-caps not to over-react as not all split-cap trusts are in difficulties.

Professional Partnerships financial planner Gillian Cardy suggests investors should visit to review the performance of their trust. She says around 40 splits out of 113 are in serious trouble so there is no reason to panic as many are financially sound.

Cardy says there may be little point for investors in troubled split-caps to sell now but they should review their financial plans to see if they should be changed in light of the fall in values.

Best Investment deputy managing director Jason Hollands says it is “important to remember that the problems related to cross-holdings and gearing only affect a sub-group of splits and others have been oversold”.

IFA firm Kohn Cougar suggests that investors would be wise to switch into investment trusts from unit trusts or Oeics where the investment trust is similar but is offering a discount.

IFAs are also warning clients not to abandon regular-savings schemes due to volatile stockmarkets.

Hargreaves Lansdown head of research Mark Dampier says: “Most worryingly, some investors are cancelling regular savings plans, particularly those who started over the last five years when it would have been better to have it in a building society.”


Threadneedle fuses bonds with equities

THREADNEEDLE DEFENSIVE BOND AND EQUITY FUND Type: Unit trust Aim: Growth and income by investing in Threadneedle funds Minimum investment: Lump sum £2,000 Investment split: Bonds 75%, equities 25% Yield: 4.27% Isa link: Yes Pep transfers: Yes Charges: Initial 3.75%, annual 0.25% Commission: Initial 3%, renewal 0.5% Tel: 0800 06840005 The panel: Bruce Bulgin, partner, […]

Abbey man joins Equitable as financial consultant

Equitable Life&#39s chief finance and investments officer Charles Bellringer has quit the troubled firm. After the publication of the latest financial accounts and the completion of the compromise scheme, which was approved by policyholders in January, Bellringer says he is looking for further opportunities in corporations undergoing major change. A team will take over Bellringer&#39s […]

Company chiefs complain of high costs and needless red tape

The FSA&#39s first year has been marked by growing regulatory costs, lack of guidance and unnecessarily complex rules, says an authoritative survey of the heads of the UK&#39s financial services companies.The 2002 Financial Services Practitioner Panel survey of 3,890 senior executives in regulated financial services firms, highlights industry anxiety over the cost of red tape […]

Nasdaq Stock Market – Nasdaq 100 European Tracker (EQQQ)

Tuesday, 3 December 2002 Type: Exchange traded fund Aim: Growth by tracking the Nasdaq 100 index Minimum investment: Subject to negotiation with stockbroker Maximum investment: No maximum Investment split: 100% tracking the Nasdaq 100 index Place of registration: Dublin Isa link: Yes Pep transfers: Yes Charges: Annual 0.2% Commission: Subject to negotiation Contact:


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