Money Management articles from January 2003

Money Management archives from January 2003

How warrants work; The general principles behind covered warrants are simple but applying them in practice is far from straightforward. Gian Luigi Pedemonte, sales and marketing manager for Europe at TradingLab, reveals some basic techniques for using covered warrants.
January 1, 2003... Covered warrants are securities that confer on the holder the right, not the obligation, to purchase (a call covered warrant) or sell (a put covered warrant) a quantity of a financial asset. The asset is known as the underlying, which may be...

Is it time to get covered? Covered warrants, one of the recent success stories of European investment, have finally arrived in Britain. Jon Cudby examines the product and asks what they have to offer UK investors?
January 1, 2003... As global equity markets continue to tumble, investors have been forced to look away from more traditional investment vehicles to find elusive returns and make money from the meagre pickings available. Those investors who have not been content...

More than a flutter; Covered warrants are not just bets on movements in stocks and indices. David Lake, head of UK warrants at SG, reveals how they can be used to manage an individuals entire portfolio of liquid assets.
January 1, 2003... A key characteristic to know in order to calculate the number of warrants needed to hedge a portfolio is the parity of a warrant. This is the theoretical number of warrants needed to give the holder the right to buy, (for a call), or sell, (for...

Make the numbers add up; Simple mathematics and low cost are two of the key virtues of covered warrants that make a do-it-yourself approach viable. With packaged investment funds looking expensive, Mark Battersby explores how to minimise the capital risk and maximise returns.
January 1, 2003... Covered warrants are surprisingly risk transparent and it is possible to package them on a do-it-yourself basis to meet particular needs. There is unfamiliar jargon to learn, but it can be a fun process that also serves the purpose of doing a...

Self pay means paying more; Self paying for medical care is not healthcare planning and may have a negative impact on financial planning if not dealt with properly. Claire Ginnelly, national sales manager, Standard Life Healthcare says that paying for operations directly often costs.
January 1, 2003... More people are deciding to self pay for their medical treatment. They know that they would usually have to wait some time for any NHS treatment that they might need, and many feel that they are comfortable enough to foot medical bills without...

Doing it the right way; Buying a PMI policy should not be a decision based on price. Will Hadfield shows how medical needs should drive the process of picking a policy in the individual PMI market.
January 1, 2003... For the thousands who have a claims history with a PMI plan, the experience has been an emotional one. PMI is not like any other type of general insurance. Those who have a claims history will know that it is about dignity during illness,...

All in one; All but a lucky few live off their income yet only a minority of people have taken out insurance, whether by themselves or through their company, to protect that income in the event of ill health. Will Hadfield looks at why these products sell in such sma.
January 1, 2003... Most of those dependent on an income for their livelihood would struggle to survive for more than a few months if they were unable to work through ill health. Many people have some savings but these would quickly disappear in the event of a...

Changing definitions; Earlier identification of serious medical conditions, such as prostate cancer, is going to make critical illness cover increasingly expensive. Nick Kirwan, head of marketing and product development, Scottish Provident, shows how better medical screening w.
January 1, 2003... In the last three years, the critical illness insurance market has shown explosive growth. As more and more people have woken up to the need that they have to protect themselves, insurers have seen a record 2.3m policies being taken out in the...

Managing expectations; Most claims get paid without question. So why does the Financial Ombudsman still receive so many complaints each year from disgruntled clients who have not got the cover that they thought they had paid for? Keily Poole, marketing communications executive.
January 1, 2003... Transparency is a common word bandied around the industry at the moment. Providers and IFAs alike are both trying to achieve clarity by writing in plain English. However, perception is a powerful thing and in the mind of most clients...

DEPOLARISATION DISASTER; Are depolarisation proposals a disaster or an opportunity in disguise for the IFA market? Anna Bawden analyses the practical implications.(independent financial advisor)
January 1, 2003... The FSA has finally clarified its position on polarisation it is to go. The original concept of polarisation was first introduced in the Finance Act 1988 and required that all advisers be either independent, recommending products from...

MORE RELEVANT THAN YOU MIGHT THINK; What is the rate of capital gains tax paid by a higher rate taxpayer? The answer depends on what you're selling and how long you've owned it, explains Chris Brum of Clerical Medical.
January 1, 2003... Taxable gains realised on pure investments held for a short period will be taxed at 40%. This rate reduces after the assets have been held for three full years but no matter how long these investments are held the best effective rate to be paid...

Taking STOCK.
January 1, 2003... Since January 2000, the London market has fallen by some 50%. Overseas markets have done slightly worse or better than London, but many investors have fared very much worse than these averages. Indeed, unless something akin to the miraculous...

HOW much will you get at 65? John Chapman looks at the illustrations provided by the ABI/FSA pensions calculator and asks whether the low resulting income will encourage people to save more for their retirement.
January 1, 2003... If you contribute GBP100 a month into a pension plan, will you have a comfortable retirement? What can you do to improve your later years? The ABI/FSA pension calculator will give you some answers, though they may not be easy to swallow. ...