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Britannia International takes optimum route to growth

Britannia International’s optimum growth bond 9 is a six-year guaranteed equity bond which could mature in year three.

The bond is linked to the performance of the FTSE 100 index and will provide a full capital return regardless of the performance of the index. Investors will also get 33 per cent of their original investment at the end of year three if the index has risen by 33 per cent at that point. Otherwise, the product will run full term, providing 145 per cent of the growth in the index.

To calculate the returns, the closing level of the FTSE 100 index is taken on the first day of the term and compared with its closing value on the third anniversary. If the index has not risen by at least 33 per cent, the initial starting level will compared with the daily average produced over the final year of the full six-year term.

Although the bond is designed to be held for up to six years, emergency withdrawals of at least £5,000 can be made at any time except within the first and last month of the term. Withdrawals are subject to a fee which depends on the year in which the withdrawal is made.
For year one, the fee is 10 per cent of the amount withdrawn and this scale decreases by one per cent a year until year five. The fee is taken from the remaining capital on the day the withdrawal is made.

Bank of Ireland Isle of Man has a similar six-year product with an early maturity feature, but this feature has more trigger points than the Britannia International product so stands a greater chance of maturing early. It provides 120 per cent of the rise in the index if it runs full term, which is lower than the Britannia International product.


Time to transfer?

In my previous piece in this series of articles examining recent and imminent changes to pension planning, I started to concentrate on issues affecting the decision as to whether or not an early leaver from a final-salary scheme should consider transferring their benefits to a private pension arrangement. I discussed the vital importance of considering […]

Benefits lost since PFS transfer

I refer to the article in Money Marketing where John Ellis takes some unusual stances over important matters to do with commission and the absurd report from the CRA. I have been in corres-pondence with him regarding the fact that the PFS excludes all members below AFPC from the public IFA search facility on its […]

Coulson buys into mortgage broker

Former Zurich Advice Network director Richard Coulson is understood to have bought into broker Enterprise Mortgage Specialists with former Zurich colleagues.

Francis takes Aviva non-exec role

Former ABI director general Mary Francis has joined the board of Aviva as an independent non-executive director. Francis, who joins on 1 October, is also a non-executive director of the Bank of England and Centrica. Prior to joining the ABI in 1999, she worked for the Treasury and as private secretary to the Prime Minister.


Guide: 10 required letters — what to send, to whom and when?

This guide from Johnson Fleming will take you through the required communication and also give ideas for additional actions that will ensure your auto-enrolment project is a success. The topics in this guide include: the letters you need to send out; what to send and when; the importance of employee engagement; and what to consider as additional communication.


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