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Lump Sum Investment (Not ordinarily Uk Resident)

My Brother lives in New York, and has done for 3 years. He is a chef and if you know the industry they don't get a lot of time off, In fact he works 13 hour days at least 6 days a week. So all that money he is making out there is sitting in his account doing nothing. He is not too sure how long he will staying the US, but he would guess at least another year or so. But Understands that he will be locking it away for a period of time and is fine with that.

He has so far built up £20k which he would like to invest , He will also be keeping about £5000 in his current account. And also keeps at least a few thousand dollars in the US bank account.

His house is valued at about £70k, with no mortgage on it(He is renting the property out, while he is away)

I approached a guy I know who works for Legal and General who said he couldn't invest it because he was not ordinarily resident in the UK.

He is looking for something which protects his capital, but gives the potential to get some growth. He is not afraid of the stock market, but does not want to take major risks.

The L&G bond was keeping the capital secure and he got 70% of the growth of the FTSE over 5 years (He understands that could be no growth at all)

Is he going to get this reaction from most companies?

Anybody any suggestions for the money? I thought about some on-line account for him, but he thinks that it is a good time to invest with markets low

Reply to
Phil Deane
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There are problems (taxation and marketing) with some types of investments for non UK residents. He'll be OK with an OEIC.

Matt.

Reply to
Matt Robertson

He should also be OK with an investment trust or other shares.

Thom

Reply to
Thom Baguley

Northern Rock has just launched a Gaurenteed Equity Bond, which gaurentees the capital, but gets the growth of the FTSE. No admin charges at all.

3 year option gives you 85% of the growth 5 year gives you 105% of the growth.

Benchmark date is 18th August. end date is average of the 6 months before 18 August either 2006 or 2008.

I must admit the 3 year option is appealing. Min investment £5k

Reply to
Phil Deane

I hate guaranteed funds too, because of the small print, (which generally invalidates the guarantee)

but your suggestions gives no guarantee at all, and why include 'investment trusts'? They can increase the gain but can also increase the risk,

Reply to
john boyle

And what about dividends? Sure there are no charges?

Really three years? Often they do some "smoothing" which means you get about (n - 0.5) years growth.

Reply to
Stephen Burke

As far as I am aware dividends are not paid, you just get the growth at the end.

The start figure is 18th august. End date is average of the last 6 months up to 18th august 2006

Reply to
Phil Deane

That was my point, in effect the loss of dividends is a charge.3.5% yield for

3 years is over 10%.

That's a bit better, but it still means that you effectively lose 3 months growth on a 36 month investment, i.e. about 8% of the growth on average.

Reply to
Stephen Burke

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