There is widespread ignorance about Pep transfers among private investors, according to research by ...
There is widespread ignorance about Pep transfers among private investors, according to research by Invesco and it is IFAs who are making the largest proportion of total Pep transfers.
Of £450m moved in and out of Pep investments during July 2000, only £35m was moved by direct clients to another plan manager, compared with £104m transferred via the intermediary market.
The trend is further emphasised by the repurchase numbers which show that £153m was taken out of Peps by direct clients compared with only £23m repurchased via intermediaries. The balance of £135m was moved via tied agents and managed portfolios.
Mike Webb, chief executive, Invesco Fund Managers Limited, said this would indicate that direct clients may not be aware of their option to switch their Pep money to a better performing fund and retain their existing tax benefits.
Webb said: "There are more than nine million Pep accounts in existence and there appears to be a lack of knowledge in terms of the options for moving Pep investments from one plan manager to another. The most obvious reason for moving a Pep is to improve on performance but investors also need to look at whether their holdings are still appropriate to their needs. Portfolios need to be monitored on a regular basis as the difference between funds even within a single sector can be enormous."
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