Individual Savings Account uk,Individual Savings Account

The recently published Sandler Report, commissioned by the Government last year, could lead to the biggest shake-up the City has witnessed for many years if the recommendations are implemented. The following extracts give a flavour of the conclusions:

"Recent research showed that the average UK unit trust underperformed the market by 2.5 per cent per year due to a combination of charges and unsuccessful active management"

"Correlation between higher charges for unit trusts and superior investment performance is at best weak. Consumers who pay more usually receive no additional benefit".

"Recent research by the FSA found statistically significant evidence of advisers recommending one provider's offering over another because it paid a higher commission."

The Report was deemed essential because people are not saving enough for their retirement. So against a backdrop of mis-selling scandals, plummeting markets and accusations of over-priced products, the Sandler report is heralding a new generation of "simple and comprehensible" products. This gives much welcome encouragement to the tracker fund sector.

What happens next?

The Treasury and the Financial Services Authority were due to begin work on the recommendations in September, with initial proposals on a simplified regime expected next year.

For the full report click here.

For a synopsis click here.

Investors are losing millions by investing in expensive actively managed funds which consistently fail to match the performance of the index.
And because of this, the world of investment management is changing. Conventional managers are losing out to Index Tracking Funds.

Click <here> to find out how much Unit Trust Investors will waste in 2006.

Conventional or 'Active' investment managers claim that skilled professionals can beat the Index. And if you want high performance, you must pay high charges.

But as another survey reported on by the Sunday Times on 18 June 2000 revealed, the overwhelming majority of unit trusts are seriously under-performing.

That is why tracker funds are fast winning over more and more converts.

Here is some more hard evidence.

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