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BoE Life International hedges WP bond

BoE Life International, part of the South African investment bank, has introduced its international with-profits bond aimed at UK investors who want to invest offshore.

The bond invests in BoE&#39s fourth series with-profits fund and currently offers an annual bonus of 5.5 per cent. In turn, the with-profits fund invests in a mixture of equities, bonds and hedge funds of funds.

There are two versions of the bond, a capital redemption version and a life assurance version. The difference between the two versions comes into play if the investor dies. Under the life assurance version, the death benefit is 101 per cent of the encashment value. The capital redemption version allows ownership of the bond to pass to someone else and has a fixed term of 99 years. Both versions of the bond allow withdrawals to be taken on a quarterly, half-yearly or yearly basis, but at least £5,000 must remain invested.

The underlying fund&#39s exposure to hedge fund of funds may make the product more appealing to high-net-worth clients and institutional investors who are looking for a smoothed investment. A bond that invests in hedge funds may seem attractive to investors who have seen some with-profits providers slash their bonuses in line with falling stockmarkets.

However, there is no guarantee that BoE&#39s mixture of underlying assets will produce the expected returns for future years and investors should be aware that bonus rates may fluctuate accordingly.


Durlacher enters retail market

Stockbroker Durlacher has entered the retail market with the introduction of two Oeics, one of which is the CF Durlacher growth plus fund. This Oeic aims to achieve capital growth over the long term by investing in a portfolio of around 50 stocks, benchmarked against the FTSE All-Share index. Around 10 per cent of the […]

Cash injection

My family owns a small medical research company that specialises in wound healing. Currently, the corporate bank account holds an amount much higher than we require. What options does the company have to make more effective use of this cash? What else should we look for in planning terms? When companies have excess cash, there […]

Lending boost for Coventry

Coventry Building Society has reported a post tax profit of £28.4 million for the year ending December 2001 up from £27.6m the previous year. Its net mortgage lending is up 53 per cent to £619m from £301m. It says it achieved record gross mortgage lending of almost £1.5bn, up from £1.2bn. Intermediaries accounted for 40 […]

Old Mutual Asset Management focuses on UK smaller companies

Old Mutual Asset Management UK Select Smaller Companies Fund Product details Type: Ucits Aim: Growth by investing in UK smaller companies Minimum investment: Lump sum £10,000 Place of registration: Dublin Investment split: 100% invested in UK smaller companies Isa link: No Charges: Initial 4%, annual 1.5% Commission: Initial 3%, renewal 0.5% Tel: 0808 100 2715 […]

Developing your personal relationships – Webex

Read more 9amFinancial advisers and solicitors working together Presented by Ian Muirhead, director & chairman at Solicitors for Impartial Advice (SIFA) Listen to Ian’s expert insight and experiences of how financial advisers and solicitors can work together to deliver mutual benefit and enhanced client outcomes. Register here 10am Financial advisers and accountants working together Presented […]


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