Press Release
Date: 9 July 2008
Close Investments (UK) Limited believes that their Escalator Funds provide an ideal investment for advisers looking to shelter their clients portfolios during the continued market turbulence.
Recent market volatility has led advisers to seek ‘safe havens’ for their client’s investments which traditional funds in the IMA sectors haven’t been delivering. The Close Escalator Funds are lower risk investments which may suit savers tempted by the returns from stockmarket investments, but who are unwilling to risk an unspecified amount in the event of a fall.
Roland Kitson, Sales & Marketing Director, Close Investments comments; “The graph below demonstrates that there is a place for protected investments within investors portfolios particularly when you are looking at the levels of market volatility that we have seen in the last six months. Furthermore, over 10 years to end June, the Close UK Escalator 100 Fund has returned 42.43%, this compares with 37.89% for the average money market fund (source: Lipper Hindsight, total return basis)”.
Source: Lipper Hindsight, 31/12/2007-30/06/2008. Bid to bid, net income reinvested.
The performance information set out above refers to the past. Past performance is not a reliable indicator of future results.
For further information please contact:
Hannah Parkinson, Assistant Director, Close Investments 020 7426 4170
Karen Wagg, Polhill Communications 020 7655 0540
Website: www.closeinvestments.com
Notes to editors:
Issued by Close Investments (UK ) Limited which is authorised and regulated by the Financial Services Authority and is a subsidiary of Close Investments Limited.
The Close Escalator Funds are UK authorised unit trusts, which give investors an exposure to stockmarket growth, with 95% - 100% protection, every quarter, from the falls. In other words, the Fund goes up when the market goes up, but, on a quarterly basis, only goes down a maximum of 5% if the market falls.
By locking in profits on a quarterly basis, investors can benefit from smoothed, enhanced returns when stockmarkets go up with 95% - 100% protection from any falls.*
There are three Escalator 95 Funds available covering different geographic areas and the UK Escalator 100 fund:
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The Close UK Escalator 95 Fund – has exposure to the UK stockmarket to gain a diversified exposure to some of the UK’s largest companies.
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The Close European Escalator Fund – has exposure to the European stockmarket indices, thereby removing the stock selection, timing and dealing problems associated with traditional funds.
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The Close World Escalator Fund – has exposure to the indices of the major world stockmarkets, it thereby reduces the timing, dealing and stock selection problems most fund managers face. This fund provides a sensible way to diversify a portfolio and benefit from the growth prospects of different world economies.
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The Close UK Escalator 100 Fund – as with the Escalator 95 Fund, this also invests in the UK stockmarket but offers 100% protection from falls.
The Escalator Funds are available through a number of platforms.
*Actual returns will depend on the stockmarket. No return is guaranteed, and the return in any one quarter can be zero.
CLOSE INVESTMENTS LIMITED
Close Investments provides a broad spectrum of innovative products for institutional, mutual funds and private investors including property, tax mitigation products, manager of managers, specialist fund management (such as fixed income and the Alternative Investment Market) and structured products. Close Investments Limited manages assets of £3.9bn^. Close Investments Limited, Close Investments (UK) Limited and Close Multi Manager Limited are members of the Close Investments Group and each uses the trading name Close Investments. The other member of the Close Investments Group is Fortune Asset Management Limited. Close Investments Limited is authorised and regulated by the Financial Services Authority.
Close Investments Group products include:
· open & closed ended property funds
· open ended investment companies
· protected unit trusts
· technology tracker funds
· inheritance tax mitigation products
· capital gains tax and income tax mitigation products
· generalist and AIM Venture Capital Trusts
· UK smaller company and AIM investments
· fixed income funds
· structured products
· hedge funds
Close Investments Limited is a subsidiary of Close Brothers Group plc.
Close Brothers Group plc is an independent investment banking group which was founded in the City of London in 1878 and is listed on the London Stock Exchange. The Group employs over 2,500 staff and manages assets of £8.9bn*. Its main activities comprise asset management, corporate finance, market making and banking, including asset financing. The Group has established a strong reputation for independence and integrity. Its growth is largely attributable to an entrepreneurial but conservative approach and it has achieved market leadership in several specialist areas
^As at end January 08 (Source Close Investments)
*As at end January 08 (Source Close Brothers Group plc)