View more on these topics

Dawney charges in with turbo

Dawney Day Quantum

Protected Commodities Turbo

Type: Capital-protected bond

Aim: Growth linked to the performance of a portfolio of industrial metals and energy-related commodities

Minimum-maximum investment: 15,000-no maximum, Isa 7,000

Term: Five years

Return: 180% of any growth in the commodities portfolio

Guarantee: 90 per cent of original capital returned in full regardless of the performance of the underlying investments

Closing date: November 25, 2005 for direct investments only

Commission: Initial 3.5%

Tel: 020 7861 0900

Dawnay Day Quantums Protected Commodities Turbo is a capital-protected bond linked to a basket of eight industrial metals and energy-related commodities over a five-year term.

Zooming in on the positive features of the product Baronworth director Colin Jackson says: This is a very attractive participation rate at 180 per cent but the trade off is only 90 per capital protection. This could be attractive to those clients who are looking for a higher return but with an element of risk to their capital.

He also highlights the fact that returns are subject to capital gains tax as opposed to income tax, so it could be of interest to people who have not used their CGT allowance. They will then be able to utilise their ISA allowance for something else, notes Jackson.

He regards the level of commission at 3.5 per cent as slightly higher than market rate.

Highlighting the potential drawbacks of the product Jackson says: The asset class is unusual consisting of eight equally weighted commodities. This could be a turn off for would-be investors.

Jackson feels literature is slightly complex not only due to the nature of the asset class but also because it includes details of Dawnay Days other commodities product. The Protected Commodities Accelerator V utilises the same asset class but with 100% capital protection coupled with 150% participation, which is still very high, he says.

Jackson concludes: We are not aware of any other products offering such a high participation rate even with an element of risk and an unusual asset class so cannot make any comparison.


Suitability to market: Good
Investment strategy: Average
Adviser remuneration: Good

Overall 7/10


Axa launches portfolio planner enhancements

Axa has launched the second phase of its wealth management proposition, enhancing its portfolio planning tool and improving the fund range of its onshore bond.The provider has also introduced a new bond charging structure aimed at simplifying pricing. The new bond has a 2 per cent loyalty bonus for investors in year 10 and no […]

Magian Mutual closes to new business

Professional indemnity insurer Magian Mutual has closed to new business after haemorrhaging 30 per cent of its members in the last year. The closure follows persistent speculation that the mutual, established by PI Direct in 2003 to bring new capacity in a hard market, was struggling to cope with soft market conditions. Head of Magian […]

Patrick Snowball becomes head of Aviva UK businesses

Patrick Snowball, currently group executive director of general insurance, will become group executive director of Aviva UK and will be responsible for the group’s UK businesses.This includes Norwich Union Life, Norwich Union Insurance and RAC with the exception of Morley Fund Management. Snowball will also become executive chairman of Norwich Union Life. Norwich Union Life […]


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