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A decade of property for Abbey and Knight Frank

Abbey for Intermediaries has, in conjunction with Knight Frank, established the residential property plan , a capital-protected bond linked to the performance of the Halifax House Price Index over a 10-year term.

Investors in the plan will receive a full capital return at the end of the term regardless of index performance. They will also receive 200 per cent of any growth in the index. To calculate the returns the monthly level of the Halifax House Price Index on November 21, 2005 is compared with an average of the monthly levels of the index over the last 12 months of the term. The product will mature on November 20, 2015 and may be a way self-invested personal pensions and small self-administered schemes can access the residential property market six months ahead of proposed changes to pension arrangements on A-Day 6 April 2006.

Although linking structured products to the Halifax House Price Index is not new, this product is unique because it is linked solely to this index for a longer term than most structured products. It enables investors to gain long-term exposure to the UK housing market without the risks of direct investment such as void rental periods, difficult tenants, unexpected maintenance costs, time spent managing the property or the larger amount of capital needed for an investment such as buy-to-let. It also offers capital protection which investing in property shares would not provide.

A product like this may also appeal to investors who have seen the housing market perform well. Recent research from Prudential found that investors are still confident in the houses market despite warnings of a slowdown. Prices, while still rising, are doing so at a slower rate and although there is no risk to capital, there is a risk that growth in the housing market may have run out of steam by the time this product matures.


Gerrard weights exposure

Gerrard Investment Management has teamed up with structured product provider Woolwich Plan Managers to offer IFAs a structured product which has weighted exposure to four stockmarket indices depending on performance.

Fee fears

The equity markets have tumbled in recent weeks. No one would necessarily blame the way fund managers are remunerated. It is driven by oil prices, fears about inflation and global uncertainty.

Liverpool Victoria widens distribution net

Mansfield Building Society has signed a tied distribution deal with Liverpool Victoria that will see it distribute the friendly society’s products through its network of five branches.Mansfield Building Society advisers wil act as introducer on Liverpool Victoria’s investments, life insurance and pensions products.Mansfield Building Society chief executive David Fisher says: “When we decided to extend […]

Framlington’s second Aim VCT seeking 35m

Framlington is looking to raise 35m with the launch of its second Aim VCT. Brian Watson, who runs the firm’s first Aim VCT, which raised 24.6m in 2004/05 after being launched last December, will be lead manager. Watson will be supported by the UK team, which inclu- des Roger Whiteoak, Nigel Thomas, Richard Peirson and […]


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