We are pleased to send you your Spring 2008 valuation - we hope you will like the new format.

What's happening to ISAs?

Higher Maximums - The maximum contribution level will be raised to £7,200, with up to £3,600 available to invest in Cash ISAs, so you can save even more tax-free. Get the most from your ISA - put in as much as you can afford, as soon as you can.

Greater Flexibility - The confusion for over 16 million savers between Maxi and Mini ISAs will be removed from April. You now have ONE overall allowance, which can be split between Stocks and Shares and Cash in any proportion with a maximum of £3,600 in Cash.

Cash ISAs and TESSAs can be moved - You will now be able to move some or all of your previous years' Mini Cash ISAs and TESSAs into your Stocks and Shares ISA account. The transfers can be of any size and do not affect this year's allowance. Remember, you can NOT transfer back into Cash ISAs afterwards.

Goodbye PEP. Hello ISA. The 3.7million existing PEPs will also be harmonised and incorporated into the ISA system. Any previous General or Single Company PEP will become known as an ISA and may be transferred in the usual manner.

New Launch: Allenbridge Strategic Alpha Fund

Please see overleaf for details of our attractive new Fund of Funds vehicle. For all those of you who have so often told us how much you value the quality of our research, but don't have time to act on our recommended changes, the Strategic Alpha Fund is, we believe, the solution. Our skilled and experienced investment team, with an outstanding track record over the past six years, will constantly monitor performance and make any necessary changes, to optimise your returns.

Cash within Fund Supermarket accounts

Importantly, if you do not wish to lose your ISA allowance, but have not yet decided which fund(s) to select, or similarly, if you are effecting a PEP or ISA transfer and don't know which new fund(s) to move into, then this option could be for you. We refer you to the article in ISA Direct 31 on how you can incorporate use of cash or funds such as BlackRock UK Absolute Alpha or Newton Phoenix Multi Asset, within your Stocks and Shares ISA accounts to help you manage risk within your portfolios. This facility may even help you protect your account from being subject to further downturns in the stockmarket.

Fundsnetwork's ISA Cash Park. This is Fundsnetwork's version of the Cofunds Cash Reserve. It is a holding account within the ISA and pays a gross rate of 0.4% below the Bank of England Base Rate. You can invest your allowance in it until you decide when to pick funds later in the year.

Budget 2008 Update

It may well be worth re-assessing your investment and with-profits bonds, particularly if you are using them only for investment savings purposes. There is now a single capital gains tax rate of 18% on unit trusts and OEIC funds. This compares favourably with investment and with-profits bonds where the gains remain chargeable depending on your income tax band. This means that higher rate payers will end up paying 40% on gains when they encash their bonds. Using funds may therefore offer a more tax efficient long-term solution for you.

Fund supermarket Switching Costs

A flat 0.25% fee for all fund switches between any of the funds listed in the Cofunds and Fundsnetwork catalogues will apply, except in cases when switching into funds with no initial charge. We strongly suggest that clients place their deals online to reduce dealing times. Contact our Valuation Team on 0800 339 999 to obtain your passwords. Cofunds and Fundsnetwork clients can switch funds with a clearly worded letter or fax setting out their fund choices. Switches may take up to three working days to effect.

SIPPs

Many investors are consolidating their pension plans into a SIPP (Self Invested Personal Pension) to allow them greater investment flexibility. Cofunds and Fundsnetwork now offer their own SIPP accounts. We would be glad to provide more information on this increasingly popular pension investment opportunity - please contact Andrew Graham on 0800 339 999.

Private Client Service

Allenbridge also provide a portfolio management service from £500,000 underpinned with our expertise in fund selection and ongoing monitoring for private investors, trusts and SIPPs. For further information, contact Jason Day, Director of Private Clients on 020 7318 6337.

Child Trust Funds - and the Growing Up Bond

In addition to the £250 benefit from the government, a further £1,200 per year can be contributed by parents and relatives. We offer a range of options, and a similar account called the Growing Up Bond is now available for older children who did not qualify for the voucher. Please call us for more details. Child Trust Fund accounts, of which there are over 2.5 million, will now have the option to roll over automatically into ISAs when the child reaches 18 instead of having to withdraw the proceeds in full at that time.

Online Access - a better way to manage your account

Please call our Valuation Team if you would like to view the valuations of funds you have purchased through us. They will confirm your access password. Funds are priced daily and all our fund research and Red Alerts are included too. If you wish to receive Red Alerts by email, register with us now.

Tell Your Friends and Family - Special Introductory Offer

Allenbridge has grown to a respected force in the industry by word of mouth recommendation - we have never advertised. Do you like what we are doing? If you do, can you think of a friend or member of your family who would like to receive our unique research, portfolio monitoring and AllenbridgeCare services?

Just let us know - and, as a mark of our appreciation, we will send you a £25 Marks and Spencer voucher for every new client introduction.

For specialist investment fund guidance please call us on 0800 339 999. For any issues relating to your valuation statement, please ask to speak to the Valuation Team.

Yours sincerely,

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Anthony H Yadgaroff
Group Managing Director