View more on these topics

B&W offers 6 year combination bond

Bristol & West has introduced its 6 year income & growth bond which consists of a guaranteed equity bond for growth and a high interest account.

The high interest account element pays monthly income of 5 per cent and gives investors penalty-free access to this part of their investment.

The guaranteed equity bond element of the product is linked to the performance of the FTSE 100, Eurostoxx 50 and Nikkei 225 indices over a six-year term. Investors get the full amount of their original capital returned even if the stockmarket indices fall during the term.

The final return is calculated by adding together the average growth in each index over the six-year term to produce a final average. Investors get 80 per cent of this growth.

The capital protection is a good feature for cautious investors, but the price of the protection is the 80 per cent cap on growth. Some investors will feel they do not need capital protection at all since stockmarkets are already at a low point and may be moving towards the recovery aspect of the investment cycle. Others may choose a guaranteed equity bond with a shorter term that offers a guaranteed level of growth in addition to the return of the original capital.

One example is Newcastle Building Society&#39s capital safe bond, which returns the original capital and 20 per cent of growth in the FTSE 100 index after a five-year term. However, it has a cap on growth of 60 per cent so this level of protection is even more expensive.


Compliance expert warns companies over FSA rules

Many retail financial services companies may believe they are compliant with new FSA regulations but still be failing to meet admin rules.Compliance specialist Huntswood director Shaun O&#39Leary says many companies have put significant resources into ensuring their sales processes are compliant but fail to realise that their back-office admin processes could be in breach of […]

Mortgage 2000 links to IFA

Mortgage 2000&#39s consumer website, has secured a deal to supply national IFA Inter-Alliance with mortgage, life insurance and critical-illness cover leads.The deal marks the first time that consumers on the website can be directed to the services of an IFA, in a move that is aimed at improving the search-to-apply ratio.The website&#39s chief executive, […]

Britannic warning on annuity transfers

Britannic Retirement Solutions is predicting that the removal of mortality cross-subsidy from annuities would need returns to increase by between 1 per cent and 4.4 per cent.Research from BRS illustrates that if the Government allows transferability between annuity providers, they face cutting £11,000 off the lifetime income of the average male age 65. The provider […]

Equitable compromise scheme in the post

Equitable Life policyholders are starting to receive the final compromise scheme details this week and have until January 11 to decide if they will back the deal.GAR policyholders are being asked to exchange their guarantee for a 17.5 per cent uplift in policy value and non-GAR holders are being offered a 2.5 per cent uplift […]


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