Dresdner RCM is offering its Triplets Isa product again this season, which gives investors exposure ...
Dresdner RCM is offering its Triplets Isa product again this season, which gives investors exposure to three investment trusts under one Isa wrapper.
The group has reintroduced the product as a way to counter-act volatility in the market by giving exposure to three different investment styles via the Charter, Brunner and Merchants trusts.
Charges for the Isa are 0.5% initial, 0.5% stamp duty and an annual Isa management fee of £30 plus VAT. Minimum investment is £3,000 or £100 per month regular savings.
According to Juliet Cohn, fund manager of the Charter investment trust at Dresdner RCM, the package is aimed at spreading investor risk. She said by buying into Triplets, an investor who wanted exposure to the upside Europe presents, can balance the risk by exposure to other areas through the other two portfolios: Brunner in global growth and Merchants in the UK.
Cohn believes Europe is changing: "For a long time in the US there has been an investor culture, everybody invests as part of their normal, day-to-day lives. In Europe this is only just starting to be the case, but already we are seeing share ownership in places like Germany rise by a tremendous amount."
With the growth of cheaper dealing via online sites and the increasing public awareness of of their investment potential, Cohn believes the European market as a whole is growing and the growth ratio between Europe and the US is likely to be reversed this year. She said: "Typically we see much stronger growth in the United States than here in Europe. However, I expect at least two quarters of negative growth from the US while Europe should remain fairly constant, if not rising.
"Europe performed better than anywhere else last year, the market is slightly less tradable than that of the US so is a little more sturdy as a result."
Against this backdrop, she predicts volatility in Europe will continue to pose a problem: "Uncertainty has dogged the market for a long time, it has been seen recently in the bouts of incredible optimism which have occurred around falling interest rates, swiftly followed by pessimistic outpourings when the mood shifts."
Cohn believes the threat introduced by hedge funds will continue to affect the market. "I don't think we'll ever see a return to the kind of stability we were used to before hedge funds," she said.
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