Archive for January, 2009

ISA returns of the year

Wednesday, January 28th, 2009

Sheltering your returns from tax

As we enter a New Year, the tax clock is ticking and the countdown to the end of the financial year on 5 April approaches with increased vigour. If appropriate to your situation, one way in which you could hold a wide range of investments and shelter your returns from tax is to take advantage of an Individual Savings Account (ISA).


Splitting the sector

Wednesday, January 28th, 2009

All change for the UK equity income and growth sector

Following a review of its UK Equity Income sector, the Investment Management Association (IMA) is splitting the sector and providing a new definition for the new IMA UK Equity Income and Growth sector.

As a result of the review, IMA has:

removed from the UK Equity Income sector all funds within the sector that fail the yield test based on 12 months’ look-back as at 31 December 2008, but taking into account final distributions if these are out of step with a fund’s calendar year end, and amend the definition accordingly;

created a new sector known as the UK Equity Income and Growth sector effective from 1 January 2009;

offer funds that fail to meet the definition of the UK Equity Income sector (based on the yield criterion) a home in the new sector, permitting the retention of track records, if they meet the definition;

funds in other sectors may apply to move to the new sector if the fund is able to demonstrate that it has complied with the definition on an on-going basis; track record retention will not be automatic.

Sector changes formally became effective on 1 January 2009.