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Co-Operative Bank and B&W weave index basket

Co-Operative Bank and Bristol & West have both introduced five-year guaranteed equity bonds that are linked to a basket of four indices.

Both products provide a full capital return at the end of the term, regardless of the performance of the FTSE 100, S&P 500, Nikkei 225 and Swiss Market Index, which each carry an equal weighting. While this means investors are not pinning their hopes on one region, returns could also be diluted if one index performs badly compared with another.

Under Co-Operative Bank&#39s guaranteed stockmarket bond &#45 issue 4, investors will receive 80 per cent of the average growth in the indices. To calculate the returns, the closing level of each index is taken on October 17, 2003 and an average is produced. This is compared with an average taken across the indices during the last 12 months of the term.

Bristol & West&#39s five-year global guaranteed equity bond &#45 issue 7 &#45 provides lower growth of 70 per cent and again, the calculation of the final return is based on averaging over the last 12 months of the term. However, its minimum investment of £2,500 is £500 lower than the Co-Operative Bank product and withdrawals of at least £500 can be made during the term.

Many bonds, including the Co-Operative Bank product, do not allow partial encashment so the ability to do so make the Bristol & West bond more suitable for people who may need emergency access to their money.

However, investors who take advantage of Bristol & West&#39s withdrawal facility must pay an access fee based on the Bank of England base rate and the number of days left to run on the product term. An administration fee of £100 will also apply, so using this facility is expensive and defeats the purpose of a capital guarantee.


FSA offers keynote view on credit risk

How lenders manage credit risk along with how investors and rating agencies reward good credit risk management are topics up for discussion at the credit risk management workshop being held at the Landmark Hotel in London next month Organised by the CML/GEMI for September 18, the keynote speech will be given by FSA deposit takers&#39 […]

Millfield stockbroker in dispute with analyst

Millfield&#39s stockbroker Collins Stewart is embroiled in a row with its former analyst James Middleweek who has accused the broker of insider dealing in relation to a media firm. Collins Stewart has acted as Millfield&#39s broker since it floated on Aim in 2001 and has presided over three tranches of fund-raising for the IFA. Middleweek […]

Charcol Holden Meehan staff sacked for sexual and violent emails

A 37-year old personal assistant has received £10,000 compensation from Charcol Holden Meehan after finding out her colleagues were sending emails of a violent and sexual nature about her. The firm has sacked one male and one female member of staff for sending the offensive emails and disciplined seven other staff members who received them.

Life offices face a distribution fight

Whatever the FSA may or may not decide on menus, disclosure and the rest, it is clear that new “distributor” models are already emerging. Although we have known for at least a year that American Express was interested in buying into distribution long before the Threadneedle deal, we now know it involves a wrap account […]

How do you choose the best online service?

By Ross Jackson, senior marketing manager There are many different protection online services available in the market and no doubt you’ll have used a few when submitting protection business. But why should you have to put up with slow, unresponsive sites for your business when you’re used to dealing with slick, modern user experiences in your […]


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