View more on these topics

Abbey for Intermediaries/Knight Frank harness residential growth

Abbey for Intermediaries/Knight Frank

Residential Property Plan

Type: Capital-protected bond

Aim: Growth linked to the performance of the Halifax House Price Index

Minimum-maximum investment: 3,000-500,000

Term: 10 years

Return: 200% of the rise in the Halifax House Price Index at the end of the term

Guarantee: Original capital returned in full at the end of the term regardless of the performance of the index

Closing date: November 4, 2005, October 21, 2005 for Pep/Isa transfers

Commission: Initial 3.5%

Tel:0800 328 1903

Abbey for Intermediaries and Knight Frank have established the residential property plan, a capital-protected bond linked to the performance of the Halifax House Price Index over a 10-year term. It is marketed as a way that 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.

Highclere Financial Services partner Alan Lakey says: “This is a 10-year investment plan with capital security and the potential for doubling the increase to the Halifax House Price Index.”

He points out the product is open to new Isa, Sipp or SSAS investments as well as transfers into these and Peps. “It represents an opportunity to enjoy access to residential property growth prior to April 6, 2006. The final year averages the Halifax index,” says Lakey.

There is nothing Lakey dislikes about this product. “It appears to have no negative aspects,” he says. He feels the initial commission of 3.5 per cent reflects the lack of renewal commission available.

Scanning the market for possible competitors Lakey believes this is a unique product which may suffer competition from Britannic, Norwich Union and New Star on the investment side.

He concludes: “Since the Halifax index started in 1983 there has not been a 10-year period where it has fallen. The worst period in 1989-1999 showed a 12 per cent gain and the best period in 1994-2004 showed a 149 per cent increase.”


Suitability to market: Good
Investment strategy: Good
Adviser remuneration: Good

Overall 9/10


Woolwich Plan Managers releases next tranche on two products

Woolwich Plan Managers is releasing the next tranche of its accelerated growth and capital plus plan tranches. Accelerated growth 8 comes with a three-year option repayiing twice the market rise, capped at 24 per cent. The five-year option has a three times multiplier, meaning a 16 per cent rise in the market delivered maximum 48 […]

LTC system is incoherent and needs reform, says Rowntree

The system for paying for long-term care is unfair and incoherent, according to a discussion paper by the Joseph Rowntree Foundation. It calls for a debate on how to share the costs of long-term care to meet the needs of an ageing population. The paper, Facing the Cost of Long-term Care, suggests that the present […]

Forum starts dialogue between FSA and marketers

A financial promotions action group is being formed by the FSA and senior marketing professionals to promote best practice in the marketing of financial products. The regulator’s financial promotion team and industry marketers will meet at the Royal Society of Medicine in London on October 6 to launch the group. FPAG aims to open up […]

Rignall joins Sesame to boost mortgages

Sesame has appointed Paul Rignall as mortgage product manager, joining from St James’s Place where he was mortgage marketing manager. He replaces Andy Young who left for TBMC in April. Rignall was responsible for mortgage and general insurance at SJP and he previously worked for Zurich. Rignall will be responsible for management and development of […]

UK housebuilders remain a value trap – despite post-Brexit falls

By Mark Martin & Holly Cassell, Neptune UK Equities As investors continue to digest the UK electorate’s vote to leave the EU, Neptune’s Mark Martin and Holly Cassell explain why they believe housebuilders remain dangerously overvalued Click here to view full article Important information  Investment risks  Neptune funds may have a high historic volatility rating and […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment