LMJ is a firm of independent financial advisers specialising in the management of investment portfolios and pensions. We have been helping clients navigate complex financial markets since 2001 and from those very early days, our business has evolved primarily through client recommendations. Read More
Collective or pooled investments are a popular alternative where an investor can reduce their risk but maintain sector exposure. Individual contributions are combined and an Investment Manager purchases direct from an array of providers for the investor. The investor is able to gain exposure to a number of assets and sectors, more than could be achieved otherwise. The returns are subject to tax. Unit Trusts and OEICs only invest the sum contributed whereas Investment Trusts have the facility to borrow money subject to limits for investment. Advice in this area is strongly advisable as these are specialized investments.
Unit trusts are collective funds that allow private investors to pool their money in a single fund, thus spreading their risk across a range of investments, getting the benefit of professional fund management, and reducing their dealing costs. Unit trusts are open-ended in contrast to investment trusts, which are closed funds. Different trusts have different investment objectives: investing for income or growth, in small companies or large, and in different geographical regions.
This is an open ended Collective Investment where investor contributions are pooled together and split into units before investing into pre-determined asset classes. A Fund Manager assumes responsibility for investments and strategy working within the terms of the Trust Deed. Suitable for investors who are looking for returns greater than cash or gilts, our experts are available to provide advice in this area.
An investment Trust is a closed ended collective investment, often set up as a Public Limited Company, capitalised by the issue of shares. As a non trading company, any growth in the share price will be a combination of increased share demand and increases in the underlying investment portfolio. The ability of an Investment Trust to borrow money for investment and trade at a discount or premium to net asset value sets it aside from a Unit Trust/OEIC, and as a result it can make it more speculative. Our experts are on hand to provide advice.
Much the same in structure as the Unit Trust/OEIC, the difference is the tax treatment. Set up under Life Assurance rules each purchase contains a small element of Life Cover, often as little as 1% of the premium. Withdrawals are allowed each year up to 5% of the initial premium without immediate liability to tax which our investors find very attractive. We use providers who are household names to facilitate investments and these include Aviva, Prudential and Legal and General although the list is not exhaustive
The value of your investment may go down as well as up and you may get back less than you invested.
LMJ Financial Management Ltd
Upper South Hall
Bullen Farm Business Centre
Kent, TN12 5LX
Tel: 01732 874111
Fax: 01732 874222
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