View more on these topics

Britannia goes after eight

Britannia International has introduced the eighth issue of its five-year guaranteed equity bond, which is linked to the FTSE 100 index.

This issue of the bond offers growth potential of 38.25 per cent, which is higher than the previous issue, which offered 33.94 per cent over five years. Like issue seven, the bond returns investors&#39 original capital whatever happens to the FTSE 100 index during the term. Investments will accrue a fixed rate of interest at 6 per cent gross until the start of the term.

To calculate the final returns, the closing level of the index is taken at the start of the term and is measured against the average level of the index during the last 12 months of the term. If the index has risen or has remained at the same level, investors get their original capital plus 38.25 per cent gross. If the index has fallen, investors will only get their capital back.

Cautious investors who are scared of risking their capital on the stockmarket may find this bond meets their needs, especially if they want to tax benefits of investing offshore. However, there are many onshore and offshore products that could provide competition as the guaranteed equity bond bandwagon rolls on.

Scottish Life International&#39s protected term deposit series 1 has an advantage over Britannia International&#39s bond in that it offers a minimum return of 110.2 per cent of the investment and a maximum return of 151. However, its use of three stockmarket indices could dilute returns and Britannia International&#39s product is less complicated.

Recommended

NS&I savings drops in February

Sales of National Savings & Investments&#39 products in February dropped to £850m from £1.02bn in January. Overall holdings in NS&I products were reduced by £3m as withdrawals for the month stood at £853m.Total investment now stands at £62.6bn.

Sowerby and Aird replace MacLeod at Investec

Investec Asset Management has appointed Andy Sowerby and David Aird as joint managing directors of its UK and European fund management business after the sudden departure of former MD Jamie MacLeod.Sowerby, who was previously marketing director, and Aird, former UK and European sales director, take up the new roles with immediate effect.They will share responsibility […]

New IFA sales manager for Jupiter

Jupiter has appointed Simon Hynes as nationals and networks sales manager, a role created as part of its IFA support team expansion plans. Hynes joins from Foreign & Colonial, where he was regional sales manager responsible for new business development through intermediaries in the South-east. The move follows Jupiter&#39s appointment of two broker liason executives […]

APMM appoints new chairman

The Association of Policy Market Makers has appointed Brian Goldstein as its chairman succeeding Paul Sands. Goldstein is managing director of Tep market making firm Policy Portfolio. The APMM has also elected 1st Policy Company managing director Douglas Conn as vice chairman, Policy Plus sales and marketing director David Carrington as honororary secretary and John […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com