View more on these topics

Citibank bonds with US index

Citibank has designed an offshore guaranteed equity bond that is linked to the S&P 500 index during a three-year term.

The bond is only available to investors who have an account with Citibank. It guarantees the return of the original capital, regardless of the movement in the S&P 500 during the term, plus minimum growth of 6 per cent gross. But investors have the opportunity to get higher returns, as they get 60 per cent of any rise in the S&P 500 index.

To calculate the returns, the level of the S&P 500 is recorded on May 10, 2002 and the closing levels of the index are then recorded on a quarterly basis throughout the term. The start date is compared with the average quarterly level of the index and investors get 60 per cent of any rise. If there is no growth in the index, investors will get the 6 per cent minimum returns and their original capital back.

The bond is likely to appeal to cautious investors who want to benefit from an expected US recovery, but who also want to protect their capital from the risks of direct investment in US stocks if recovery is slower than expected.

However, the bond&#39s appeal could be limited because a three-year term may not be long enough to ride out the uncertainty leading up to a recovery and the cap on growth may also put some investors off.1


&#39Commission and better than best to stay,&#39 says MP

Shadow Paymaster General Howard Flight is calling on the FSA to clarify its position on IFA commission and better than best, saying he was told they would be retained.In a private conversation held with a senior FSA official only days after the publication of CP121 in January, Flight said he was told the better than […]

Britannia International – 5 Year Guaranteed Capital Equity Bond (Issue 8)

Monday, April 29, 2002 Type: Guaranteed equity bond Aim: Growth linked to the performance of the FTSE 100 index Minimum investment: Lump sum £1,000 Place of registration: Isle of Man Investment split: 100% linked to the performance of the FTSE 100 index Guarantee: Capital returned in full regardless of the performance of the index Yield: […]

Friends Ivory & Sime snaps up R&SA&#39s fund manager

Friends Ivory & Sime has announced its intention to purchase the UK fund management arm of Royal & Sun Alliance for £240m.Under the terms of the contract, FIS will also manage R&SA&#39s life and general insurance funds exclusively for the next 10 years. The deal will see FIS&#39s funds under management increase to £70bn from […]

Sandler will criticise FSA regs says Sunday Telegraph

Ron Sandler will conclude the cost of complying with complex FSA rules is a significant deterrent to saving through pensions, Isas and unit trusts according to the Sunday Telegraph.The final report of the Treasury commissioned Review of Medium and Long Term Savings will be published next month, says the newspaper, and will propose the creation […]

Who cares?

By Tracey Dickson, marketing consultant There are almost 7 million carers in the UK – that’s around 10 per cent of the population who provide unpaid care for a disabled, seriously ill or older loved one.1 But according to a report from the charity Carers UK, 20 per cent of people providing 50 hours or more of care […]


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