date: Wed, 28 May 2008 11:22:03 +0100
from: "Carey, Gerald" <Gerald.CareyatXYZxyzwin.co.uk>
subject: Re Your ISA
to: "Keith Briffa" <k.briffaatXYZxyz.ac.uk>
There is a substantial deposit cash balance in your ISA which currently stands at
�18,350.49.I would like to invest the majority of this to try and take advantage of
the setback seen in equity markets in the last 2 or 3 weeks.Also,under the HMRC rules which
govern ISAs, we should not hold significant cash balances for long periods.
The cash balance has been increased recently by the receipt of the �6,840 take over
proceeds of the former holding in Scottish & Newcastle.
Taking up the RBS rights issue,as agreed, will account for �4,612 of the deposit balance
and I will be writing to you shortly to recommend taking up the HBOS rights issue which,if
you agree,will account for a further �203.50 ( your holding in HBOS is a small one ).On
this basis,the total rights calls would be �4,815.50 which would leave a cash balance of
�13,534.99.I would like to keep a modest balance on deposit to meet our management
fees;possible further rights issues calls etc.If �1,534.99 were retained,this would leave
�12,000 available for investment.
I suggest investing �6,000 into a new holding in JP Morgan Fleming New Europe.The fund
invests in companies in Central and Eastern Europe and Russia with particular emphasis on
the latter.This Eastern Europe and Russia emerging markets fund has produced good capital
growth from a major region of economic development with the unit price rising by
42.5%:185.5% and 351.7% over the last1,3 and 5 year periods.The unit price is 247.3p.The
income return is very low with a gross yield of 0.6%.
I suggest the balance of �6,000 be split to add �4,000 and �2,000 respectively to the
existing holdings in BG Group and Pacific Horizon to increase their values to �9,550 and
�5,375.BG Group is the former British Gas and the company is currently achieving record
earnings driven by the huge rise in natural gas prices.The company has transformed over the
years into an international oil and gas business from its former businesses of
production,transmission and distribution of gas in the UK.Pacific Horizon invests in the
Asia Pacific economies ( ex the poorly performing economy in Japan ) which continues to be
an area of considerable growth potential.The managers have consistently performed well in
capital growth terms.The respective shares prices and gross yields are �12.82 and 0.8% and
159p and 0.8%
I hope these ideas will be helpful.
Divisional Director-Private Clients
Tel:0845 213 3288
Fax:0845 213 3627
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