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AIB feels secure

Allied Irish Bank Offshore has established the secure combination bond, which combines a fixed-rate high-interest account with a guaranteed equity bond.

The bond is available in sterling and euros. Investors place 80 per cent of their capital in the guaranteed equity bond element and the rest goes into the high-interest account element. Investors have the choice of a one-year fixed rate account paying 8 per cent gross or a two-year fixed-rate account paying 5.35 per cent gross a year.

The guaranteed equity bond element is linked to the S&P 500, FTSE Eurotop 100 and Nikkei 300 indices. Investors get all of the average growth in these indices up to 50 per cent and capital is returned regardless of the movement in the indices.

To calculate the returns, the closing level of each index is measured on May 14, 2003 and an average is produced. This is compared with an average taken during the last six months of the term. Any growth will be capped at 50 per cent and no growth in the indices means investors will get back only their original capital.

This product is similar to Barclays Private Clients International&#39s HI-ILDA 5, but HI-ILDA 5 caps returns at either 50 per cent or 60 per cent, depending on the currency chosen. HI-ILDA 5 is linked to either the FTSE 100 or S&P 500 indices for five years, so the secure combination bond would be more suitable for people who want geographical diversification.

HI-ILDA 5&#39s high-interest account element offers 7 per cent gross for one year, which is lower than the secure combination bond, and it does not offer a two-year fixed-rate option. However, the secure combination account does not allow withdrawals, whereas HI-ILDA 5 does.


Maturity options on non qualifying policies

Under the current law, there is no tax charge when a policy matures if the policyholder exercises an option to re-invest all the proceeds of the maturing policy in a new policy with the same insurer. This relief, in section 540(2) ICTA 1988, in effect means that the time of chargeable event is deferred until […]

North takes lead on property price rises

House prices rose by 1.1 per cent in March, according to the Halifax house price index.The figure is a fall from February&#39s 1.7 per cent increase. Halifax says the slowdown has been caused by an increase in the number of properties coming on to the market. For the first three months of the year, prices […]

Imla says seller&#39s packs will cost time and money

The Intermediary Mortgage Lenders&#39 Association says home seller&#39s packs will raise costs and fail to improve consumer understanding.The Government sent out details of the proposed packs last week. Imla chairman John Heron says the plans have changed little since the original scheme was unveiled despite extensive feedback from the industry warn- ing the Government of […]

Marlborough Fund Managers – MFM Slater Recovery Fund

Friday, 11 April 2003 Type: Unit trust Aim: Growth by investing in UK companies Minimum investment: Lump sum £3,000 Investment split: 100% in UK companies Isa link: Yes Pep transfers: Yes Charges: Initial 5.25%, annual 1.5% Commission: Initial 3%, renewal 0.25% Tel: 0845 6023095

2016 Global Survey of Individual Investors: How is investor behaviour rewriting the job description for financial professionals?

Trapped between expectations for near double-digit returns and strong apprehensions about investing in persistently volatile markets, investors worldwide are of the opinion that professional financial advice is worth the fee. But even though they believe individuals who work with a financial professional are more likely to achieve their goals, investors have a clear vision of […]


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