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Day dawns for protected China investment

Structured product specialist Dawnay Day Quantum has established the Protected China fund, a capital-protected fund linked to the FTSE/Xinhu China 25 index for six years.

With the Protected China Fund, investors will get no less than 90 per cent of their original investment whatever happens to the index. If the index stays the same or rises, investors will get all their original capital back, but falls of up to 10 per cent will mean investors lose 1 per cent of their capital for every 1 per cent fall in the index, subject to the 90 per cent capital protection.

On top of this, investors will also receive 70 per cent growth in the index. The fund was designed to enable investors to gain exposure to China, which is characterised by political and economic instability&#45 without putting their original capital at risk. Although China offers the potential for high returns but investing in an Oeic or unit trust leaves investors open to risks and this product is an innovative solution.

Growth in the Chinese economy looks likely to be sustained because production and labours costs are low and there is consumer demand domestically as well as demand for Chinese exports. The 2008 Olympics will also help by creating greater links between China and the rest of the world.

However, investors may be unfamiliar with the index to which this product is linked and they will be getting 70 per cent growth in the index rather than all the growth. However, investors may feel it could be worth paying for capital protection because emerging markets such as China are volatile.


Pension credit is savings barrier

A person who saves 20 per cent of salary from age 41 to 65 will lose a third of what they save by not getting the pension credit, according to research by the Pension Policy Institute. The thinktank&#39s study shows that someone starting saving at 41 and retiring at 65 needs to save 20 per […]

Skills Council consults on exam review

The Financial Services Skills Council is embarking on an industry-wide consultation for its examination review. Launching tomorrow, this will be the first time the exam review has gone out to an industry-wide consultation since the FSA handed over responsibility for completion of the exam review to the Skills Council. The FSSC is seeking views from […]


“No. It could create a trend. Everybody could end up trying to escape their liabilities.”Peter Shorter,Shorter & Co “No, it seems they are trying to evade their responsibilities.”Ray Parker,Parker Financial Services “No. This has happened far too many times, one of the more notable cases being Towry Law.The FSA should take action now.”John MacLaren,John MacLaren […]

Abbey to launch 15 year fixed rate mortgage

Abbey is launching a 15 year fixed rate mortgage at 5.74 per cent later this week. The product is available for movers and remortgage as well as house purchase and first time buyers can opt for free valuation and free legals at the slightly higher rate of 5.79 per cent.

How can I help develop my professional connections?

Graeme Ballantyne, business consultancy manager, looks at how you can maximise the opportunities through your professional connections As we move through the summer months it’s perhaps a good time to pause and reflect on whether the plans you’ve made for your business are bearing fruit. One area we at PruConsulting know many advisers have been […]


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