View more on these topics

B&W offers sweet combination

Bristol & West has established the income and growth guaranteed equity bond which combines a guaranteed equity bond with a savings account.

The product has a term of six years and allows investors to place up to half of their capital in one of two savings accounts to provide a monthly income. One of the accounts offers 0.75 per cent above the Bank of England base rate for the six-year term, giving a current payable rate of 5.25 per cent a month. The other is a fixed-rate account paying 5.15 per cent a month.

The remainder of the original capital will be placed in the guaranteed equity bond element for growth. This offers 60 per cent of the growth in the FTSE 100 index plus a full capital return regardless of the index performance. The returns are calculated by recording the closing level of the index on December 14. 2005 and comparing this to an average taken over the final 12 months of the term.

A good feature of this product is that investors can choose the type of income account they want. This choice may be influenced by whether the investor needs access to their money as the fixed term account does not allow withdrawals, while the tracker account allows penalty-free withdrawals of at least 250.

Although emergency withdrawals can be made from the growth element of the product without putting the capital protection in jeopardy, withdrawals must be made in writing and must be at least 500. A GEB access fee will also be payable which may be expensive in relation to the amount withdrawn.

On an initial investment of 10,000 with a 5,000 withdrawal being made halfway through the term, assuming the Bank of England base rate is 4.5 per cent, the access fee would be 997.90 which includes a 100 administration fee.


A fly swotter

Protection was essential at Goodwood last week as Direct Life & Pensions top brass took a team of journalists to fly helicopters, planes and fast cars. A charity race day in support of Flying Scholarships for the Disabled saw a reporter from a downmarket rival scoring full marks in the helicopter flying section, showing an […]

Gerrard weights exposure

Gerrard Investment Management has teamed up with structured product provider Woolwich Plan Managers to offer IFAs a structured product which has weighted exposure to four stockmarket indices depending on performance.

Artemis Global Income: favouring Europe over the US

With a 10 per cent return from his Global Income Fund in the first three months of 2015, Jacob de Tusch-Lec talks to journalist Alexis Xydias about the drivers and why he favours Europe and Asia over the US. Jacob believes European companies remain cheap and is still finding opportunities amid value stocks – in contrast […]


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