View more on these topics

Britannia locks in growth

Britannia Internationals guaranteed lock-in bond is a guaranteed equity bond which locks in a minimum level of growth, depending on the performance of the FTSE 100 index.

This offshore product has a term of five years and six months and will return investors capital in full regardless of the performance of the index. If the index rises by 20 per cent, 30 per cent or 40 per cent at any time during the first four years and six months, 20 per cent, 30 per cent or 40 per cent growth respectively will be locked in, so it will become the minimum level of return an investor will get in addition to their original capital.

At the end of the investment term investors will receive the greater of 100 per cent of the growth in the index over the full investment term or the highest locked-in level of growth.

To calculate the returns the closing level of the FTSE 100 index is recorded on July 7, 2005 and compared with a monthly average produced over the final 12 months of the term.

There are currently no similar products in the market so this product may appeal to offshore investors looking for an innovative structured product. Locking in rises in the index is a good feature as they will not lose out if the index rises to the specified levels but subsequently dips.

However, the lock-in feature does not apply during the full investment period it will stop when the 12 month averaging period begins.Although any rises during this period will not be locked in, they will count towards the participation rate in the final returns due to the averaging, which will also lessen the imp[act of market falls during the final year of investment.


Compulsion could be back on agenda

The appointment of David Blunkett as Work and Pensions Secretary has increased the likelihood of compulsion, according to leading figures in the industry.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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