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CSFB protects capital through Titans

Investment bank Credit Suisse First Boston (CSFB) is aiming its capital protected Tessa-only Isa (Toisa) at investors with maturing Tessas and those who are unhappy with the variable rate accounts of their original Tessa providers.

The global titans Tessa plan is linked to the 50 stocks listed on the Dow Jones Global Titans index. These include large global companies such as BP, Coca Cola and the Ford motor company.

Investors can choose a growth option that offers the return of the original capital plus up to 55 per cent of growth. Alternatively, an annual withdrawal option allows investors to withdraw 10 per cent of their capital each year as an income stream. They get the remaining 50 per cent of their capital returned plus up to 50 per cent growth.

The 50 stocks on the index are grouped into five baskets which each contain 10 stocks. Each basket represents 11 per cent of the final return for the growth option and 10 per cent of the final return for the annual withdrawal option.

Where a stock in any basket falls by more than 33 per cent of its initial value during the final year of the term, the value of the other stocks in that basket are wiped out when calculating the final level of growth.

Stockmarkets are currently at a low point and according to JPMorgan Fleming&#39s latest survey, investors&#39 confidence is also low. CSFB&#39s full capital guarantee may help to ease cautious investors into doing something with their mature Tessas but some may be unwilling to risk ending up with only their original capital after tying their money up for a further five years.


Field calls for new basic pension

The Pensions Reform Group, led by former welfare minister Frank Field, has launched proposals to abolish pensioner poverty by creating a new basic state pension. The report proposes a new funded pension, the Universal Protected Pension, to be built up over 40 years and merged with the existing pay-as-you-go National Insurance based state pension. This […]

Pension adviser named Woman of the Year

IFA Pam Warren was named Woman of the Year this week in recognition of her work in pushing for improvements in rail safety. Ms Warren, who formerly ran her own pensions advice company, received the award after receiving severe burns in the Paddington rail crash two years ago, and undergoing 22 operations to her face. […]

Finance 4 Professionals – Buy-to-Let Tracker

Monday, 15 October 2001.Type: Buy-to-let tracker.Tracker term: Three years.Tracker rate: Bank of England base rate plus 1.15 per cent.Minimum loan: £50,000.Maximum loan: Up to 85 per cent of valuation subject to a maximum of £1m.Income multiples: Subject to negotiation.Arrangement fee: £399.Redemption fee: None.Conditions: Only available to accountants, actuaries, barristers, dentists, doctors, engineers, pharmacists, solicitors and […]

RJ Temple profits rise

National IFA RJ Temple revealed a pre-tax profit of £362,000 in its half yearly results to June 31, up from a loss of £36,000 for the same period last year. Its profit after tax is £257,000. Its turnover is up 44 per cent to £9.7m from £6.8m. It says one of the factors contributing to […]

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Guide: Johnson Fleming produces auto-enrolment checklist

For a job as big as managing the auto-enrolment changes, it’s important to know what has been completed and what still lies in front of you to give you the reassurance that everything is in hand. Getting the planning and project management right at the outset can help you see the path ahead and ensure everyone knows their roles and responsibilities. To help with this, Johnson Fleming has produced a checklist outlining every step that needs to be taken when preparing for auto-enrolment.


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