Caxton FX 7.25% Fixed Rate Bond

atush

Last time I took on this amt of risk, not covered by the FSA, I bought 500 quids worth of dollars from Crown Currency???? And lost the lot?

But did buy from them previously and made out. So, ask yourself will your funds be there x years later? Maybe? Maybe not. If they were covered by the FSA I might be in there.

hallmark

Reaper wrote: »

Nah, you can easily beat it. Remember their payments are subject to 20% income tax and can't go in an ISA, unlike most shares.

So after 20% tax this offering only pays 5.8% net.

For comparison The Merchants Trust (an Investment Trust) has a current yield of 6.2% and it can go in an ISA so there is nothing more to pay. Also they have managed to increase their dividend payments every year for the last 28 years, making them a pretty reliable payer.

Is there anything like a DRIP for MRCH.L ?

cheers

Alias_Omega

Crown Currency Repeat.?

Less risk purchasing € or $ yourself, awaiting the exchange rate to fall.

Reaper

hallmark wrote: »

Is there anything like a DRIP for MRCH.L ?

cheers

Not that I am aware of, though I didn't look far.

By the way it was just an illustration of an alternative, so check it is really what you are after.

In my case I had been looking for a high income, defensive investment and thought this was a safe and lower charge alternative to the usual Neil Woodford fund choices (and I bought when the market was lower so my yield is even better).

Note that the by holding back dividends in the good years as reserves to pay out in the bad years you can expect it to do well in troubled times but lag a bit during a bull run. Fine by me as I can't see a bull market returning anytime soon.

gadgetmind

Reaper wrote: »

Note that the by holding back dividends in the good years as reserves to pay out in the bad years you can expect it to do well in troubled times but lag a bit during a bull run.

I'm planning on entering retirement with a three year cash buffer, however, I've been rolling cash into equities lately, so it's currently looking like a "cash for essentials" buffer rather than a "cash for business as usual" one!

Assuming the markets pick up in 2013/2014, I'll use capital gains allowances to trim a few holdings and top-up the cash.