Snake on side of road On Nut

[naammanow]

Got a spare 45,000 GBP in offshore bank account accumulating dust. Or invest in GBP offshore fixed interest getting about 2.5%, or taking the money here, covert to THB and investing in something like Aberdeen Growth Fund? Any suggestions? Tks!

[meatboy]

put it in bangkok bank fixed term 11months i think its still 3.3% tax deducted 15% recoverable end of tax yr.offshore is hitting rock bottom.see bank interest rates in this forum for more info.

[54321]

Share prices and property are still relatively low in the UK.

£45k could easily get you an apartment that would rent at an absolute minimum of £300 pm or £3,600 a year take of the service charge of about 40 pm and your left with £3120 pa, minus approx 15% (£520) for a letting agent and you are still getting a good 5% return

Or Shares

Taylor Wimpey currently at 60p was £6

Barclays Bank 229p was over £6

I would also consider a condo in Thailand, buy from a reputable company off plan, pay total of approx 10% in installments during the construction phase, and hope/expect the prices have risen by the time its been completed. Assuming (for ease) the condo costs 1 million (£20k), you set aside 100,000k for installments or £2000, and pay the balance on completion and rent it out, BUT if the prices appreciate by 10% during the construction phase (which they often do and more) you can sell your contract/right to buy and you have turned 100,000 baht into 200,000 baht.

Some will say buying a condo is stupid and a way to loose money, but that's certainly not my experience, good luck with your decision.

[yoshiwara]

put it in bangkok bank fixed term 11months i think its still 3.3% tax deducted 15% recoverable end of tax yr.offshore is hitting rock bottom.see bank interest rates in this forum for more info.

Sounds about right.

[meatboy]

put it in bangkok bank fixed term 11months i think its still 3.3% tax deducted 15% recoverable end of tax yr.offshore is hitting rock bottom.see bank interest rates in this forum for more info.

Sounds about right.

as the t/t exchange rates for uk.£ is hovering 48.95-49.12 the last 2weeks settle for 49.if you want to risk your 49k see my post [bank interest saving rates]

[PattayaPhom]

Share prices and property are still relatively low in the UK.

£45k could easily get you an apartment that would rent at an absolute minimum of £300 pm or £3,600 a year take of the service charge of about 40 pm and your left with £3120 pa, minus approx 15% (£520) for a letting agent and you are still getting a good 5% return

Or Shares

Taylor Wimpey currently at 60p was £6

Barclays Bank 229p was over £6

I would also consider a condo in Thailand, buy from a reputable company off plan, pay total of approx 10% in installments during the construction phase, and hope/expect the prices have risen by the time its been completed. Assuming (for ease) the condo costs 1 million (£20k), you set aside 100,000k for installments or £2000, and pay the balance on completion and rent it out, BUT if the prices appreciate by 10% during the construction phase (which they often do and more) you can sell your contract/right to buy and you have turned 100,000 baht into 200,000 baht.

Some will say buying a condo is stupid and a way to loose money, but that's certainly not my experience, good luck with your decision.

Tax???...20% or even 40% depending on OPs other income.

[fletchsmile]

Really not enough info to give you anything more than suggestions for consideration:

If you spend a lot of time in Thailand + if you want some THB assets + if you are prepared to look longer term (5 years up) + if you are prepared to accept risk on your investment and prices going up and down + if you have enough emergency fund set aside + this is simply spare cash looking for a home, then Aberdeen Growth is worth considering. I've held it since late 1990's and it's my single largest investment holding. Since 31 Dec 2000 it has returned about 1100% (12 fold). It's a proven longer term well managed fund from a good fund management house. As an indication of risk though, in 2008 its worse year since I have held, it fell 40% in that single year - so the returns are volatile. From a tax perspective there is no tax on it for you in Thailand, no capital gains etc.

I wouldn't put all your eggs in one basket, even though it itself is effectively a basket of shares.

You might also want to consider:

- Aberdeen Asia Pacific Equity Fund

- Aberdeen Global Emerging Markets Fund

both from the same stable. This would add some Asia and EM diversification, although you're still all in Asia and Emerging Markets. These are likely to perform better than the west over next decade.

Worth also considering:

- Aberdeen Emerging Opportunities Bond Fund (for emerging markets fixed income - more stable than equities but still a reasonable yield, although it doesn't pay divs)

A gold fund like:

- MFC Gold Fund

- TMB Gold Fund

Maybe also consider buying some funds like:

Invesco Perpetual Corporate Bond Fund

Invesco Pertual Income (UK equities)

Invesco Perptual Monthly Income Fund (yield around 6.5% last time I looked)

Newton Global Higher Income

Thru a UK discount broker like Hargreaves Lansdown. These will all generate nice income yields of 4%-6% with some prospect of capital growth (except probably the corporate bond)

By all means consider Thailand equities, but spread it around as well across other geographies and asset classes. Make sure you have your emergency fund set aside first, as these are all not investments you want to have to sell at short notice.

I hold all the funds mentioned so have my money where my mouth is, and these are some of my favourite picks you may / may not want to consider

Edited October 30, 2012 by fletchsmile

[AdmiralNelson]

£45k could easily get you an apartment that would rent at an absolute minimum of £300 pm or £3,600 a year take of the service charge of about 40 pm and your left with £3120 pa, minus approx 15% (£520) for a letting agent and you are still getting a good 5% return

I think you missed a digit off in front of the 45.................

Beach huts go for 60-70k on South Coast. £45k might get you a Garage somewhere maybe.

[54321]

£45k could easily get you an apartment that would rent at an absolute minimum of £300 pm or £3,600 a year take of the service charge of about 40 pm and your left with £3120 pa, minus approx 15% (£520) for a letting agent and you are still getting a good 5% return

I think you missed a digit off in front of the 45.................

Beach huts go for 60-70k on South Coast. £45k might get you a Garage somewhere maybe.

That's the South coast, things are a lot different in Newcastle, Manchester, Birmingham, Derby.....

[davejones]

Share prices and property are still relatively low in the UK.

£45k could easily get you an apartment that would rent at an absolute minimum of £300 pm or £3,600 a year take of the service charge of about 40 pm and your left with £3120 pa, minus approx 15% (£520) for a letting agent and you are still getting a good 5% return

Or Shares

Taylor Wimpey currently at 60p was £6

Barclays Bank 229p was over £6

I would also consider a condo in Thailand, buy from a reputable company off plan, pay total of approx 10% in installments during the construction phase, and hope/expect the prices have risen by the time its been completed. Assuming (for ease) the condo costs 1 million (£20k), you set aside 100,000k for installments or £2000, and pay the balance on completion and rent it out, BUT if the prices appreciate by 10% during the construction phase (which they often do and more) you can sell your contract/right to buy and you have turned 100,000 baht into 200,000 baht.

Some will say buying a condo is stupid and a way to loose money, but that's certainly not my experience, good luck with your decision.

Where in the UK can you get an apartment for £45K that will rent for £300/month. Sounds like it could be in a pretty dodgy area. All the good apartments I've seen are £100K, often a lot more.

[phutoie2]

put it in bangkok bank fixed term 11months i think its still 3.3% tax deducted 15% recoverable end of tax yr.offshore is hitting rock bottom.see bank interest rates in this forum for more info.

Sounds about right.

That offer's expired!, now 2.75% for 4 months fixed deposit.

[meatboy]

put it in bangkok bank fixed term 11months i think its still 3.3% tax deducted 15% recoverable end of tax yr.offshore is hitting rock bottom.see bank interest rates in this forum for more info.

Sounds about right.

That offer's expired!, now 2.75% for 4 months fixed deposit.

oh well they got 10days to come up with a better rate than 2.50% for 12months.

[fletchsmile]

Share prices and property are still relatively low in the UK.

£45k could easily get you an apartment that would rent at an absolute minimum of £300 pm or £3,600 a year take of the service charge of about 40 pm and your left with £3120 pa, minus approx 15% (£520) for a letting agent and you are still getting a good 5% return

Or Shares

Taylor Wimpey currently at 60p was £6

Barclays Bank 229p was over £6

I would also consider a condo in Thailand, buy from a reputable company off plan, pay total of approx 10% in installments during the construction phase, and hope/expect the prices have risen by the time its been completed. Assuming (for ease) the condo costs 1 million (£20k), you set aside 100,000k for installments or £2000, and pay the balance on completion and rent it out, BUT if the prices appreciate by 10% during the construction phase (which they often do and more) you can sell your contract/right to buy and you have turned 100,000 baht into 200,000 baht.

Some will say buying a condo is stupid and a way to loose money, but that's certainly not my experience, good luck with your decision.

Where in the UK can you get an apartment for £45K that will rent for £300/month. Sounds like it could be in a pretty dodgy area. All the good apartments I've seen are £100K, often a lot more.

Not really a field I'm into personally, but it's around. Particularly if student accommodation.

http://www.mouseprice.com/property-for-sale/ref-10847025/the+annexe+montgomery+house+demesne+road+manchester

I like mouse.com 's website generally for keeping tabs on the UK property market. Above was a 30 second search out of interest.

Buying low-end condos for rent targeted at students is an option here too and lower starting prices than GBP 45k.

[54321]

Share prices and property are still relatively low in the UK.

£45k could easily get you an apartment that would rent at an absolute minimum of £300 pm or £3,600 a year take of the service charge of about 40 pm and your left with £3120 pa, minus approx 15% (£520) for a letting agent and you are still getting a good 5% return

Or Shares

Taylor Wimpey currently at 60p was £6

Barclays Bank 229p was over £6

I would also consider a condo in Thailand, buy from a reputable company off plan, pay total of approx 10% in installments during the construction phase, and hope/expect the prices have risen by the time its been completed. Assuming (for ease) the condo costs 1 million (£20k), you set aside 100,000k for installments or £2000, and pay the balance on completion and rent it out, BUT if the prices appreciate by 10% during the construction phase (which they often do and more) you can sell your contract/right to buy and you have turned 100,000 baht into 200,000 baht.

Some will say buying a condo is stupid and a way to loose money, but that's certainly not my experience, good luck with your decision.

Where in the UK can you get an apartment for £45K that will rent for £300/month. Sounds like it could be in a pretty dodgy area. All the good apartments I've seen are £100K, often a lot more.

Harborne in Birmingham for one, and they rent for £350-400 pm (I offered a very conservative figure of £300 pm rent)and if you want one you can buy one of mine. Its not dodgy, its in Harborne (which has a waitrose and M&S foods, so not the sort of shops you find in dodgy areas)but about a mile form the high Street next to the golf course.

there are many other good options to choose from if you look and you do not have to spend 100k

[davejones]

Share prices and property are still relatively low in the UK.

£45k could easily get you an apartment that would rent at an absolute minimum of £300 pm or £3,600 a year take of the service charge of about 40 pm and your left with £3120 pa, minus approx 15% (£520) for a letting agent and you are still getting a good 5% return

Or Shares

Taylor Wimpey currently at 60p was £6

Barclays Bank 229p was over £6

I would also consider a condo in Thailand, buy from a reputable company off plan, pay total of approx 10% in installments during the construction phase, and hope/expect the prices have risen by the time its been completed. Assuming (for ease) the condo costs 1 million (£20k), you set aside 100,000k for installments or £2000, and pay the balance on completion and rent it out, BUT if the prices appreciate by 10% during the construction phase (which they often do and more) you can sell your contract/right to buy and you have turned 100,000 baht into 200,000 baht.

Some will say buying a condo is stupid and a way to loose money, but that's certainly not my experience, good luck with your decision.

Where in the UK can you get an apartment for £45K that will rent for £300/month. Sounds like it could be in a pretty dodgy area. All the good apartments I've seen are £100K, often a lot more.

Not really a field I'm into personally, but it's around. Particularly if student accommodation.

http://www.mousepric...road manchester

I like mouse.com 's website generally for keeping tabs on the UK property market. Above was a 30 second search out of interest.

Buying low-end condos for rent targeted at students is an option here too and lower starting prices than GBP 45k.

LOL. Claim to be selling at 45% below market value. I would never believe a claim like that. More like they can't sell at a higher price. Probably means original investors in the scheme lost 50% of their money already. Don't really trust those rental guarantees either. Often a way to make a deal look better than it actually is. If it's worth the £45k they claim, then why are they trying to sell for £27K. I don't like the cheap end of the market and have had much better experiences at the higher end. £27K for just a bedroom seems a bit ludicrous to me. But each to his own.

[yoshiwara]

The problem is that the lower the end of the property market one invests in, the more the time one needs to put in in order to develop and manage it. And that is on top of appointing an agent to manage.

Things are never 100% smooth. Now that may be fine for some, but this is a Thailand forum where the objective is usually to diminish the amount and proportion of time one spends in the UK in order to free up time to spend in Thailand. That means that the headline profit objective is not necessarily the way to go. Houses, conversions, all need attention. If one wants to keep property in UK then focus on purpose built or change of use blocks (eg loft apartments). Maybe more expensive and less income return, but much better for securing one's objectives.

[davejones]

The problem is that the lower the end of the property market one invests in, the more the time one needs to put in in order to develop and manage it. And that is on top of appointing an agent to manage.

Things are never 100% smooth. Now that may be fine for some, but this is a Thailand forum where the objective is usually to diminish the amount and proportion of time one spends in the UK in order to free up time to spend in Thailand. That means that the headline profit objective is not necessarily the way to go. Houses, conversions, all need attention. If one wants to keep property in UK then focus on purpose built or change of use blocks (eg loft apartments). Maybe more expensive and less income return, but much better for securing one's objectives.

Yes, that's very true. Having to deal with problems with UK property while you're in Thailand can be a nightmare. Fly back to sort them out and you could wipe out all your profit for the year. And a managing agent will never care as much as you do.

[fletchsmile]

Share prices and property are still relatively low in the UK.

£45k could easily get you an apartment that would rent at an absolute minimum of £300 pm or £3,600 a year take of the service charge of about 40 pm and your left with £3120 pa, minus approx 15% (£520) for a letting agent and you are still getting a good 5% return

Or Shares

Taylor Wimpey currently at 60p was £6

Barclays Bank 229p was over £6

I would also consider a condo in Thailand, buy from a reputable company off plan, pay total of approx 10% in installments during the construction phase, and hope/expect the prices have risen by the time its been completed. Assuming (for ease) the condo costs 1 million (£20k), you set aside 100,000k for installments or £2000, and pay the balance on completion and rent it out, BUT if the prices appreciate by 10% during the construction phase (which they often do and more) you can sell your contract/right to buy and you have turned 100,000 baht into 200,000 baht.

Some will say buying a condo is stupid and a way to loose money, but that's certainly not my experience, good luck with your decision.

Where in the UK can you get an apartment for £45K that will rent for £300/month. Sounds like it could be in a pretty dodgy area. All the good apartments I've seen are £100K, often a lot more.

Not really a field I'm into personally, but it's around. Particularly if student accommodation.

http://www.mousepric...road manchester

I like mouse.com 's website generally for keeping tabs on the UK property market. Above was a 30 second search out of interest.

Buying low-end condos for rent targeted at students is an option here too and lower starting prices than GBP 45k.

LOL. Claim to be selling at 45% below market value. I would never believe a claim like that. More like they can't sell at a higher price. Probably means original investors in the scheme lost 50% of their money already. Don't really trust those rental guarantees either. Often a way to make a deal look better than it actually is. If it's worth the £45k they claim, then why are they trying to sell for £27K. I don't like the cheap end of the market and have had much better experiences at the higher end. £27K for just a bedroom seems a bit ludicrous to me. But each to his own.

Yes you're always going to get estate agents and the like telling you what a property is really worth

What it does show was the poster who said you can get rent of 300 quid a month or 3,600 a year on 45k was close to the mark, as there are plenty of other properties in that range. This was the first to come up and there were plenty others. Not what I'd be looking for but each to their own.

Actually in this case that's 3,600 a year guaranteed on only 27k down not 45k down. If that was someone's interest then it might be worth looking further. I'm sure people make good money on things like this if it all checks out, they know what the're doing and it's worth it, and lose it of course on the other hand when they don't know what they're doing.

From a Thailand perspective I notice people having done very well from the low end of the market, with good yields like that one and on student accommodation. There was a guy called Khun Jean who was into the higher yields on cheaper properties here on Thai Visa if I recall. The higher quality may be safer, but then again all risk and reward. I'd rather have my money in liquid assets in mutual funds as above, but worth keeping an open mind

[meatboy]

The problem is that the lower the end of the property market one invests in, the more the time one needs to put in in order to develop and manage it. And that is on top of appointing an agent to manage.

Things are never 100% smooth. Now that may be fine for some, but this is a Thailand forum where the objective is usually to diminish the amount and proportion of time one spends in the UK in order to free up time to spend in Thailand. That means that the headline profit objective is not necessarily the way to go. Houses, conversions, all need attention. If one wants to keep property in UK then focus on purpose built or change of use blocks (eg loft apartments). Maybe more expensive and less income return, but much better for securing one's objectives.

Yes, that's very true. Having to deal with problems with UK property while you're in Thailand can be a nightmare. Fly back to sort them out and you could wipe out all your profit for the year. And a managing agent will never care as much as you do.

dont tell me,we got a nice 1930,bay fronted semi in a decent area,no trouble renting it out,agents fees 10%+vat.till the tennant went behind with the rent,took 2yrs to get them out[they have more rights than the owner] after being empty 1yr.sold it for 35% less than what it was before we rented it out.just found out it was left in a mess,cant wait till we are rid of it.agents only care about their fees.nightmare.

[davejones]

Really not enough info to give you anything more than suggestions for consideration:

If you spend a lot of time in Thailand + if you want some THB assets + if you are prepared to look longer term (5 years up) + if you are prepared to accept risk on your investment and prices going up and down + if you have enough emergency fund set aside + this is simply spare cash looking for a home, then Aberdeen Growth is worth considering. I've held it since late 1990's and it's my single largest investment holding. Since 31 Dec 2000 it has returned about 1100% (12 fold). It's a proven longer term well managed fund from a good fund management house. As an indication of risk though, in 2008 its worse year since I have held, it fell 40% in that single year - so the returns are volatile. From a tax perspective there is no tax on it for you in Thailand, no capital gains etc.

I wouldn't put all your eggs in one basket, even though it itself is effectively a basket of shares.

You might also want to consider:

- Aberdeen Asia Pacific Equity Fund

- Aberdeen Global Emerging Markets Fund

both from the same stable. This would add some Asia and EM diversification, although you're still all in Asia and Emerging Markets. These are likely to perform better than the west over next decade.

Worth also considering:

- Aberdeen Emerging Opportunities Bond Fund (for emerging markets fixed income - more stable than equities but still a reasonable yield, although it doesn't pay divs)

A gold fund like:

- MFC Gold Fund

- TMB Gold Fund

Maybe also consider buying some funds like:

Invesco Perpetual Corporate Bond Fund

Invesco Pertual Income (UK equities)

Invesco Perptual Monthly Income Fund (yield around 6.5% last time I looked)

Newton Global Higher Income

Thru a UK discount broker like Hargreaves Lansdown. These will all generate nice income yields of 4%-6% with some prospect of capital growth (except probably the corporate bond)

By all means consider Thailand equities, but spread it around as well across other geographies and asset classes. Make sure you have your emergency fund set aside first, as these are all not investments you want to have to sell at short notice.

I hold all the funds mentioned so have my money where my mouth is, and these are some of my favourite picks you may / may not want to consider

I've finally got around to opening on online account in the UK so am ready to invest. When I look up the above funds (and others) there always seem to be 2-4 almost identical funds. They usually end in Acc on Inc. e.g. Corporate Bond Acc and Corporate Bond InvThe Inc seems to always show a dividend payment, so I'm assuming the Acc means that dividends are re-invested. Is this correct? Then some also have No Trail e.g. Corporate Bond No Trail Acc and Corporate Bond No Trail Inc. What does No Trail mean?

So many funds to choose from. Should keep me busy for a while.

[yoshiwara]

Really not enough info to give you anything more than suggestions for consideration:

If you spend a lot of time in Thailand + if you want some THB assets + if you are prepared to look longer term (5 years up) + if you are prepared to accept risk on your investment and prices going up and down + if you have enough emergency fund set aside + this is simply spare cash looking for a home, then Aberdeen Growth is worth considering. I've held it since late 1990's and it's my single largest investment holding. Since 31 Dec 2000 it has returned about 1100% (12 fold). It's a proven longer term well managed fund from a good fund management house. As an indication of risk though, in 2008 its worse year since I have held, it fell 40% in that single year - so the returns are volatile. From a tax perspective there is no tax on it for you in Thailand, no capital gains etc.

I wouldn't put all your eggs in one basket, even though it itself is effectively a basket of shares.

You might also want to consider:

- Aberdeen Asia Pacific Equity Fund

- Aberdeen Global Emerging Markets Fund

both from the same stable. This would add some Asia and EM diversification, although you're still all in Asia and Emerging Markets. These are likely to perform better than the west over next decade.

Worth also considering:

- Aberdeen Emerging Opportunities Bond Fund (for emerging markets fixed income - more stable than equities but still a reasonable yield, although it doesn't pay divs)

A gold fund like:

- MFC Gold Fund

- TMB Gold Fund

Maybe also consider buying some funds like:

Invesco Perpetual Corporate Bond Fund

Invesco Pertual Income (UK equities)

Invesco Perptual Monthly Income Fund (yield around 6.5% last time I looked)

Newton Global Higher Income

Thru a UK discount broker like Hargreaves Lansdown. These will all generate nice income yields of 4%-6% with some prospect of capital growth (except probably the corporate bond)

By all means consider Thailand equities, but spread it around as well across other geographies and asset classes. Make sure you have your emergency fund set aside first, as these are all not investments you want to have to sell at short notice.

I hold all the funds mentioned so have my money where my mouth is, and these are some of my favourite picks you may / may not want to consider

I've finally got around to opening on online account in the UK so am ready to invest. When I look up the above funds (and others) there always seem to be 2-4 almost identical funds. They usually end in Acc on Inc. e.g. Corporate Bond Acc and Corporate Bond InvThe Inc seems to always show a dividend payment, so I'm assuming the Acc means that dividends are re-invested. Is this correct? Then some also have No Trail e.g. Corporate Bond No Trail Acc and Corporate Bond No Trail Inc. What does No Trail mean?

So many funds to choose from. Should keep me busy for a while.

You may or may not know this website for trust info: http://www.trustnet.com/

[fletchsmile]

I've finally got around to opening on online account in the UK so am ready to invest. When I look up the above funds (and others) there always seem to be 2-4 almost identical funds. They usually end in Acc on Inc. e.g. Corporate Bond Acc and Corporate Bond InvThe Inc seems to always show a dividend payment, so I'm assuming the Acc means that dividends are re-invested. Is this correct? Then some also have No Trail e.g. Corporate Bond No Trail Acc and Corporate Bond No Trail Inc. What does No Trail mean?

So many funds to choose from. Should keep me busy for a while.

Yes Acc=Accumulation units; Inc=Income units. On the accumulation units the dividend is rolled into the value of the units, whereas the dividend units are paid out as income to the unit holder.

eg when a unit is launched it may be say 100p for both Inc and Acc Units. 1 year later if the fund has risen by say 10p then both units are worth 110p. If a dividend of 6p is paid out then:

- the Inc unit holder receives a 6p dividend (gross) and has one unit but the value falls to 104xd

- the Acc unit holder still has one unit but it remains worth 110p

Trailer fee is usually the term used for a fee paid to the fund distributor/ person who sold you the fund. Funds levy a management fee of say 1% p.a. Whether you went direct or thru a distributor the charge is the same. If you went thru a distributor, the fund manager may pay say 0.4% to the distributor as a trailer fee and retain 0.6% for themselves. If you went direct the fund manager keeps the full 1% annual charge.

Some of the better discount brokers or fund managers will pass on some of that trailer fee to you. In Hargreaves Lansdown's case they do this on the majority of funds so you receive what they call a "loyalty bonus". So:

0.6% kept by the fund manger

0.4% paid to the distributer, eg HL. They then pass on say 0.1% to you as a "loyalty bonus" and keep 0.3% for themselves.

Trailer fees can mean different things tho in different circumstances, so without knowing the exact context in which it is used, and who by, it could mean different things. Not sure the context in which your fund provider was using it

[davejones]

I've finally got around to opening on online account in the UK so am ready to invest. When I look up the above funds (and others) there always seem to be 2-4 almost identical funds. They usually end in Acc on Inc. e.g. Corporate Bond Acc and Corporate Bond InvThe Inc seems to always show a dividend payment, so I'm assuming the Acc means that dividends are re-invested. Is this correct? Then some also have No Trail e.g. Corporate Bond No Trail Acc and Corporate Bond No Trail Inc. What does No Trail mean?

So many funds to choose from. Should keep me busy for a while.

Yes Acc=Accumulation units; Inc=Income units. On the accumulation units the dividend is rolled into the value of the units, whereas the dividend units are paid out as income to the unit holder.

eg when a unit is launched it may be say 100p for both Inc and Acc Units. 1 year later if the fund has risen by say 10p then both units are worth 110p. If a dividend of 6p is paid out then:

- the Inc unit holder receives a 6p dividend (gross) and has one unit but the value falls to 104xd

- the Acc unit holder still has one unit but it remains worth 110p

Trailer fee is usually the term used for a fee paid to the fund distributor/ person who sold you the fund. Funds levy a management fee of say 1% p.a. Whether you went direct or thru a distributor the charge is the same. If you went thru a distributor, the fund manager may pay say 0.4% to the distributor as a trailer fee and retain 0.6% for themselves. If you went direct the fund manager keeps the full 1% annual charge.

Some of the better discount brokers or fund managers will pass on some of that trailer fee to you. In Hargreaves Lansdown's case they do this on the majority of funds so you receive what they call a "loyalty bonus". So:

0.6% kept by the fund manger

0.4% paid to the distributer, eg HL. They then pass on say 0.1% to you as a "loyalty bonus" and keep 0.3% for themselves.

Trailer fees can mean different things tho in different circumstances, so without knowing the exact context in which it is used, and who by, it could mean different things. Not sure the context in which your fund provider was using it

Thanks for that. Will have to sit down for a few hours and get around to choosing a couple of funds.