Managed funds: Savings accounts that last from cradle to the grave
Saturday 18 October 1997
Nothing is known about the likely shape of ISAs, apart from the fact that ministers are on record as saying they will include the best features of PEPs and Tessas.
The Inland Revenue is drawing up proposals on what to include in the new savings scheme. These are expected to be announced before the end of the year.
Ann McMeehan of the Association of Unit Trust and Investment Fund Companies (Autif), the industry trade body, says: "The ideal package will be a flexible vehicle for medium and long- term savings with low charges. It should provide for investment, including equities, and should be a part of sensible pension provision."
The investment industry would like PEPs and Tessas to be transferred into the new ISAs. "We are waiting with bated breath for the details," says Michael Ashbridge, investment director of Save & Prosper. Tony Wood of Virgin Direct adds: "From savings to PEPs and pensions to ISAs should be a smooth transition."
Then there are Oeics, or Open Ended Investment Companies. These were introduced just before the general election to bring the fund investment industry into line with the rest of Europe.
So far just a handful have been launched, the latest being the New Europe Fund from Save & Prosper. This will invest in the new markets in Eastern Europe.
Oeics offer a simplified means of investing in a portfolio of shares, taking some of the best features of unit and investment trusts. The big difference is that they have just one price, which is the same whether buying or selling. The Oeic will be run as a company with a board of directors and can be quoted on the Stock Exchange.
Having invested in the Oeic, there will be a number of sub-funds on offer. These can range from tracker funds to cash funds, from growth or income funds to the more specialist sectors including emerging markets. "The umbrella fund will be able to offer cradle to the grave type funds," says Ms McMeehan. "They will be all-embracing from the lowest to the highest risks. The investor can choose his or her own portfolio of sub-funds which can be rearranged to meet their lifestyle requirements."
- Tony Lyons
Life & Style blogs
GTA 5 Online DLC: San Andreas Flight School update brings 16-seater jet plane and more
What is ALS and the Ice Bucket Challenge?
London restaurant 34 creates champagne glass modelled on Kate Moss’ left breast
Anal sex study reveals climate of 'coercion'
Karl Lagerfeld shoots Eurovision winner Conchita Wurst in suspenders for fashion shoot
Richard Dawkins on babies with Down Syndrome: 'Abort it and try again – it would be immoral to bring it into the world'
Scottish independence: English people overwhelmingly want Scotland to stay in the UK
Isis threat: Cameron wants an alliance with Iran
Crisis? What crisis? A visiting US doctor gives the NHS a rave review
Michael Brown shooting: Chaos erupts on the streets of Ferguson after autopsy shows teenager was shot six times – twice in the head
Scottish Independence Referendum: Salmond described as 'arrogant, ambitious and dishonest' by Scottish women
- 1 Richard Dawkins on babies with Down Syndrome: 'Abort it and try again – it would be immoral to bring it into the world'
- 2 ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
- 3 A third of employers never check job applicants' qualifications, survey finds
- 4 James Foley beheading: Fox news presenter Megyn Kelly annoyed by Ferguson update during broadcast about murdered journalist
- 5 Paul Scholes: Manchester United need five experienced players who can turn round a desperate situation
£25000 - £35000 per annum: Harrington Starr: Junior Quant Analyst - C++, Boost...
£25000 - £35000 per annum: Harrington Starr: Service Desk Analyst- (Desktop Su...
£30000 - £50000 per annum: Harrington Starr: Junior Quant Analyst (Machine Lea...
£45000 - £55000 per annum: Harrington Starr: UNIX Application Support Analyst-...