Cash ISAs
Under the new ISA rules you can split your £7,200 ISA allowance (2008/09) between Stock & Share ISAs and up to a maximum of £3,600 in Cash.
You can open a Cash ISA if you are a UK resident and aged over 16.
Allenbridge does not offer this type of interest bearing account. The best rates can be obtained from building societies and banks - particularly worth checking out are internet based accounts for the highest rates.
However, with interest rates now at a relatively low point, many clients have asked us what they can do to generate better performance.
On 6th April 2008, the ISA rules changed to allow you to transfer any subscriptions from your existing Cash ISA accounts into your Stock & Share ISA accounts, giving you greater flexibility and control over your investing options.
Mini Cash ISAs, TESSAs and TOISAs are now all part of the new Cash ISA regime. Many investors may still have Tax Exempt Special Savings Accounts (TESSAs). While the earlier versions matured and were allowed to roll over into similar high interest cash accounts, and, in some cases, specialist equity-linked accounts, that system has since been modified.
Investors will also be attracted by the opportunity to consolidate their different ISA holdings into one central ISA account. However, many may wish to adopt a cautious approach to money coming from these cash accounts and would want to invest carefully in risk-controlled investments, rather than be subject to the higher volatility of pure equity funds.
Within the growing range of funds available in the fund supermarkets there are now a selection of funds which invest in cash and money markets to produce a return just as banks and building societies generate interest for their deposit accounts and savers. In addition, there are other funds that use new hedging techniques and aim to produce positive returns under all types of market conditions.
Our analysts have identified two specialist funds for this type of investment situation. They are shown opposite:
Please refer to ISA DIRECT for more information.
Go To Downloads tab for the relevant Transfer Authority Forms of the product you want.
BlackRock UK Absolute Alpha
This fund aims to achieve a positive absolute return from a portfolio of equities, options and specialist trading strategies. We have provided a full review of this fund in the UK Specialist sector in Directory in the latest ISA Direct.
FIND OUT MORENewton Phoenix Multi Asset Fund
Newton Phoenix Multi-Asset Fund aims to produce long term growth with low volatility, targeting a return of 2% above that of cash deposits. The fund provides access to a wide range of asset classes and is actively managed, with investment risk carefully controlled. A full review of the fund is in the Managed and Overseas Income sector in Directory in the latest ISA Direct.
FIND OUT MOREIdeal for First Time and Cautious Investors
Given the investment style and risk profile of these funds they would be appropriate ISA choices for first time and cautious investors who may otherwise have chosen Cash accounts instead.
Any questions?
These funds are all available within both the fund supermarket accounts from Cofunds and Fundsnetwork. If you are interested in bringing your Cash ISAs within your fund supermarket account then please call 0800 339999 for further details or email us with your query.
