Conference nyoss1::market_investing

    Well, you can buy pound-denominated traveller's checks, but
    they earn no interest.
    
    Is the "in the US" part a rejection of just opening a bank
    or money-market account in England?
    
    Is the "pounds sterling" part a rejection of just buying
    shares in English stocks via one or another mutual fund
    or directly?
    
    An ADR is a locally-traded representation of a foreign share
    held elsewhere, not a currency vehicle.  It's as though I
    bought a share in London and put it in a vault, while in New York
    I issued an ADR for that share, and promised to turn over the
    share to the holder of the ADR whenever asked.
    
    		-John Bishop

                    -< What are you trying to accomplish? >-
Income, primarily, but growth vehicles might be considered for diversity.

    
    Is the "in the US" part a rejection of just opening a bank
    or money-market account in England?

Yes, since I'm located in the US and don't regularly travel to England.

    Is the "pounds sterling" part a rejection of just buying
    shares in English stocks via one or another mutual fund
    or directly?

No, but I'm not aware of any fund specializing in England.  
    
    An ADR is a locally-traded representation of a foreign share
    held elsewhere, not a currency vehicle.  It's as though I
    bought a share in London and put it in a vault, while in New York
    I issued an ADR for that share, and promised to turn over the
    share to the holder of the ADR whenever asked.
    
Doesn't this imply currency exchange risk?

Also, does this contribute to added tax work?

Moffatt

    The ADR, like the underlying stock share, represents a future
    (possible) stream of dividends and buy-outs.  As the long-term
    exchange rate shifts, so will its value.  Short-term swings
    which don't change the long-term expectations won't cause wide
    swings in the value of ADR.  In much the same way, the currency
    risk for a long bond is lower than for a short bond.
    
    But the ADR and the long-term bond will have currency risk, even
    though it's dampened by the length of the terms.
    
    ADRs don't add any tax complexities over regular stock holdings,
    with the possible exception of foreign taxes paid (but I'm not
    sure, as I don't own any ADRs now).  That's part of why they're
    popular.  You get regular US tax information and they don't
    count as "foreign accounts", so you don't have to check the 
    "audit me now please" box on the 1040.
    
    "Foreign taxes paid" isn't too bad--it's just one more form and
    usually results in money coming back to you.  I do it every year
    because I have some shares in T. Rowe Price International Stock
    Fund.
    
    I haven't ever read about an England-only (or Great-Britain-only)
    fund.  There are English mutual funds (they use a different name,
    I think it's "unit trusts"), but then you'd have the problem of
    doing everything by mail and not getting US 1099 forms, etc.
    
    If you want income in pounds, ask your broker if it's possible for
    you to buy ADRs for British government bonds.  I don't have my
    WSJ to check for any such entries now.
    
    		-John Bishop

    If you have a long-term horizon, try the "National Savings Capital
    Bonds, Series C" which yield 11.5% over 5 years BUT pay no current
    interest.  I believe these to be somewhat analagous to US Savings
    Bonds, including the safety factor.  They can be purchased directly
    from National Savings (CB) Frepost, GW 3276, Glasgow, Scotland G58 1BR.
    
    For a shorter-term alternative you might look into buying Sterling in
    a forward transaction through Barclays Bank.  Forward Sterling is
    priced about 7%/yr. under cash Sterling so -- with no fluctuations --
    buying a 1-year forward contract today would yield about 7% to which
    you would then add/subtract currency risk.  Since you seek currency
    risk I'll forego the standard lecture.
    
    Having just closed out a five-figure profit in Pound futures I feel
    qualified to say that I think we are near a peak, and look for a
    correction into mid-August.  I am selling call spreads so as to put my
    money where my mouth is.  From mid-August thru November I look for a
    resumption of the current uptrend, expecting >> 2.00 by Halloween.
    So if you want to buy Sterling, consider waiting until 8/20 or so.
    
      John

	National savings also do other schemes:

	Invest for 5 years, and guaranteed 4% pa above inflation (which is also
	currently 4%)  This is tax-free.

	There are TESSAS that you can get from building societies, you also have
	to keep the investment in 5 years, and there are limits. This is also
	tax-free, current rates around 10.5%.

	Bristol and West guaranteed equity bond plus. you have to invest a 
	minimum of �1000 a year for 5 years, and there is no withdrawal in that
	period.
	The investment is related to FTSE. Thge Guaranteed bit is that you are
	guaranteed your original investment back, even if the FTSE goes through
	the floor.
	phone is 0800 100 117 - I don't know if the 0800 works from the US.
	you can write to Guaranteed Equity Bond Plus,Bristol and West Building
	Society, FREEPOST 4335 (tho" not from the US I would suspect), Bristol
	BS1 BYZ.

	Brokers here will deal in US shares that are not quoted in the UK 
	(eg DIGITAL), I am sure brokers in the US would also deal with UK
	listed companies.

	Heather

	And I forgot PEPS (Personal Equity Plans) - max 6,000 a year.
	Both the growth and interest are tax-free.

	The peps can be one-company share related, or unit trust related.
	You can get managed PEPS from different brokers.
	I believe you can go direct to Equity and Law and bypass fees, but I'm
	not 100% sure on this.

	Heather

I know of 2 United Kingdom only equity mutual fund. The first, United
Kingdom Fund is a closed-end fund that trades on NYSE. It is selling at a
discount to its net asset value. The second, Equi-Wright:UK is a new
open-end index mutual fund.

    Where's the best exchange rates (UKL --> USD) available? Someone is
    remitting me British Pounds - should I ask for a Bank draft (Pounds)
    and get it exchanged at an US bank or is it better to exchange it to
    US$ in UK and have a dollar draft sent me?

Unless it's for a lot of money, I'd opt for the remitter going through the
hassle of exchanging.  I can't imagine that the difference in rates is
great enough to outweigh the trouble.  In case you can't tell, I speak
from bitter experience.