View more on these topics

B&W bond reaches issue 14

Bristol & West has introduced issue 14 of its five-year guaranteed equity bond, which is linked to the FTSE 100, Eurostoxx 50 and Nikkei 225 indices.

Investors with between £500 and £1m are guaranteed the return of their original capital regardless of the movements in the three indices. They will also receive 70 per cent of the average growth in the indices.

To calculate the returns, the level of each index is recorded on June 14, 2002 and these figures are added together to produce an average. This figure is then compared to an average produced by adding together the average monthly closing levels of each index between June 14, 2006 and June 14, 2007.

Cautious investors who are looking for an introduction to stockmarket investing, without the possibility of losing their capital, could see this bond as a worthwhile product. But there are an array of products offering variations on a similar theme which could be more appropriate, depending on investors&#39 views of risk and reward.

One example is the guaranteed equity bond from National Savings and Investments, which offers 65 per cent growth in the FTSE 100 index over a five-year term. When choosing between the two products, investors would need to decide whether to put all their eggs only in the FTSE 100 basket or to diversify geographically, with the risk that the Nikkei 225, for example, could drag down the returns of the more promising UK and European indices.


IFAs criticise IMA plan to scrap two equity sectors

The Investment Management Association plans to scrap the global equity & bond and global equity income sectors in a major overhaul of performance sector classifications.Following a review by its performance category review committee, the IMA says both sectors should be abolished due to their lack of funds and the UK gilt sector should be split […]

Supermarkets take 25% of fund Isa sales

Fund supermarkets put themselves firmly on the distribution map in the first quarter of this year, accounting for around 25 per cent of investment fund Isa sales.Isa sales figures between January 1 and April 5 – reported by Cofunds, FundsNetwork and Skandia – totalled about £430m. Complete industry Isa sales have not yet been compiled […]

Hometrack foresees no end to spiralling prices

House prices are rising at an annual rate of around 15 per cent, according to a survey by market analyst Hometrack.Its housing demand index for March reports a 1.6 per cent rise in house prices, up from 1.4 per cent in February. This took the national average house price to £120,900 from £118,965 the previous […]

Scarborough Building Society – three-year discount

Scarborough Building Society three-year discount Discounted term: Three yearsDiscount:2.34% Payable rate: 3.65%Minimum loan: £25,000Maximum loan: £250,000Income multiples: 3 x principal, 2.5 x jointArrangement fee: NoneRedemption fee: 7.02% of sum repaid payable within first five yearsConditions: Up to 95% LTV, no MIG up to 90% LTV, 2.5% charge made on any capital repayment that exceeds 10% […]

The death of retirement – a boost for protection?

According to our recent report on the death of retirement, changes in workplace pension provision mean that coming generations of retirees could have a radically different experience of retirement from their parents. The average contribution rate into an old-style final salary pension was around 20% of total wages, the statutory minimum for a new automatic […]


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