It is all too easy to neglect investments you have made in the past. In particular, when was the last time you monitored the performance of your Personal Equity Plan portfolio?

Rule changes
When PEPs were introduced in 1987, the Treasury specified that at least 75% of every PEP investment had to be held, broadly, in either UK or EC shares. No more than 25% of the PEP could be invested elsewhere. This restriction does not apply to Individual Saving Accounts (ISAs), the PEP's successor.

A new manager
If you think your PEP investments may be outmoded or too reliant on the performance of a single company, we can help you consider your options. In April 2001 the rules changed, allowing the more flexible ISA rules to apply to PEPs. Since then, there has been nothing to stop you transferring your PEPs out of UK or EC sector funds into funds based in other European countries, the US, Japan or emerging markets.
Money held in a single company PEP can also now be bundled together with funds held in a general PEP. So you can move large sums from single to collective equities while still keeping them within a PEP, thereby reducing your exposure to risk.

Let us help you review your portfolio - please e-mail or contact us for complete independent advice.

Levels and bases of, and reliefs from, tax are subject to change. If you withdraw from these investments in the early years, you may not get back the full amount invested. Investment values may fall as well as rise. You may not get back the full amount invested. Levels of income may vary.

Article date January 2004