Unit Linking Flashcards
How often are most funds valued?
Daily
In what is a fixed interest fund invested?
Government fixed interest investments, gilts and corporate bonds
Why might a guaranteed fund still produce a loss?
Because of inflation making the retun of the original investment into a loss in real terms
What is the most usual bid offer spread?
5%
What usually happens to the income generated by a unit linked fund?
It will be accumulated within the fund, increasing its value
What does an equity fund invest in?
Ordinary shares quoted on the London stock exchange
What are the most usual countries for a far Eastern fund to invest in?
Japan, Hong Kong, South Korea and Singapore
What has to be taken into account for any fund invested aboard?
The currency risk
What type of property will a property fund normally invest in?
Warehouses, shopping units and office blocks
What type of asset will form a major part of a distribution fund?
Gilts and corporate fixed interest stocks
What index is often used on a protected fund?
The FSTE 100
What is a typical management charge on a unit linked fund?
1/12 of 1% per month
How are setting up costs paid for a single priced funds?
By early surrender penalties
What is pound cost averaging?
The effect of regular premiums buying lots of units when unit prices are low
A feature of using ‘capital’ units in a given fund is that they have
A higher monthly charge
