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Expat Investor : May June 2008
INVESTMENT NEWS Fast Facts 55008 Times are changing and there is a convergence of technologies occurring, which will not only bene? t the online consumer who wishes to watch television via his/her PC…. ...But change the way programmes are viewed! The current dot.com boom has also led to Billions of Dollars of New Fibre Optic Cable being laid... which means Internet Content can now be developed remotely and transmit- ted much more cost bene? cially. Consumers spending more on the Internet means that they want to watch the content they purchase properly. This has led to technological innovations: The old method of linking your Computer to a television with a VGA cable and a mono sound cable was very dif? cult!... ...while one of the latest tech- nical developments links the computer to the television by way of an HDMI cable, which is now very easy! Co Co Cons ns ns n um um umer er ers ss sp sp sp s en en enndi di diing ng nggg m m m mor or ore ee on on on onn th th t eee In In I te te t rn rnet et et m m meaa e ns ns ttha hattt th th they e ...w w w w whi hi hile le le lee ooo o onne ne ne nee o o o o off fth th th th the eee la la la late te te te test st st ss ttttec ec ec ech- h- h-- h ni ni nica ca calll dddevellopm pments ts llin inkks ks tthe hhe pu pu pu purc rc rc rc Th Th This iis in in in in in innno no nooo of of of of of l l lin iinn i te te te te te tele le le le le ll vvvvv 2002 2003 2004 2005 2006 2007 $ 0 $ 5 $ 10 $ 15 $ 20 $ 25 $ 30 2001-04 2001-10 2002-04 2002-10 2003-04 2003-10 2004-04 2004-10 2005-04 2005-10 0.00 18.75 37.50 56.25 75.00 Th Th Th Thee e e bo bo boo b ooom o Bi Bi Bi Biiillllllllio io io io Ne Ne Ne Ne Ne Ne Neeeew w w w w w w w w be be be be be bee beiin in iin inn in me me me me meaaaaa ca ca ca ca ca ca c n nnnn n re re ree re re re re reeeeem m m m m m m m m m m m m m m m m m m m m m m m m m m m m m tttteee ttt ddddd m m m m 0 75 50 25 0 5 0 Teaser 2.indd 1 16-05-2008 15:24:06 Fast Facts 55190 Fast Facts 55191 Fast Facts 55192 FRIENDS Provident International (FPI) has launched a protected fund that is exclusively available through its range of Friends Provident International Limited (FPIL) regular savings and investment bond products. The Global Growth Protector Fund seeks to generate unlimited returns from a “dynamically managed basket of equity assets whilst simultaneously offering an explicit protection level against down side risk, using fixed interest and deposit investments.” The fund is backed by the “powerful” combination of BlackRock and HSBC and provides a combination of growth and protection with a high emphasis on the developing equity markets. FPI says that the fund has an initial bias (30%) towards the Asian-Pacific region or asset classes/sectors benefiting from the Asian growth story, making this an ideal investment for clients who want to share in the dynamic growth potential of the region. The remainder is diversified globally in more developed markets. In a strong equity market climate, the fund can be up to 100% invested in equity assets to deliver attractive performance, without sacrificing the high level of protection. In poor equity market climates, the cash exposure is automatically increased via the CPPI mechanism – the Constant Proportion Portfolio Insurance (CPPI) technique. This systematic approach, explains FPI, ensures that the fund unit price does not fall below 80% of its highest ever value. The protection is open-ended which means investors are not tied to a fixed investment term. For added peace of mind, HSBC Bank also ensures that the Fund value never falls bellow the 80% floor. The 80% Global Growth Protector Fund is available as a direct collective fund via the FPIL Reserve Bond and has an annual management charge of 1.2%. SLI ethical investors bring airline stocks down to earth STANDARD Life Investments (SLI) has announced that its ethical funds will no longer invest in airline stocks. This new policy has been adopted as a direct result of feedback received in the Standard Life 2007 annual ethical investor survey in which 30% of respondents stated that they would prefer a complete exclusion of airline stocks from the funds. SLI’s Julie McDowell tells Expat Investor, “The views of investors in our ethical fund range are of planning you will ever do, is often overlooked. “It is equally important that savers in to personal pensions, including SIPPs, make the most of their savings and ensure that high charges are not eating away at their long term returns.” How much are you paying for your pension? Protected fund from Friends Provident International paramount importance to us. We are unique in carrying out an annual survey to understand investor wishes and concerns and we seek, wherever possible, to reflect those concerns in the criteria applicable to our ethical funds. “The Standard Life Ethical Committee, which is comprised of senior Standard Life managers and three individual investors in the ethical funds, has considered the results of our 2007 ethical investor survey. “In light of the sizeable percentage of our investors wishing to avoid investment in airlines, the Ethical Committee has decided that our ethical policy should be adapted to reflect these views. “I am sure that investors welcome the fact that they play an important part in helping to shape our ethical fund criteria.” Standard Life Investments currently manages £588.5m over its ethical fund range which includes the UK Ethical, Ethical Corporate Bond, European Equity Ethical, Life Ethical and Pension Ethical funds. The fund manger this year also launched an ethical investing micro-site – www.focusonethical.co.uk which features fund manager interviews, ethical stock stories, ethical guidelines and literature of interest to the ethically minded investor. FIDELITY International is urging pension savers to review their existing pension plans, as new research shows six out of 10 savers have no idea how much they are paying every year in charges. Nearly a third of people (31%) with a stakeholder pension and one in three (33%) with a Self-Invested Personal Pensions (SIPP) are unaware of the charges they pay. Of those who are aware of charges, more than a quarter (27%) feels that they are set too high. This figure rises to 46% among those with a SIPP. The research also found that one in three pension savers (33%) admitted to not even considering the charges when they took their policy out, despite the fact they could be squandering hundreds every year in unnecessarily high charges. David Dalton-Brown, Head of Fidelity FundsNetwork says, “Most people would not dream of paying over the odds for their gas bill or their car insurance, yet a pension, as one of the most important pieces of financial May/June 2008 ? EXPAT INVESTOR 13
July August 2008