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Dual exposure from GE Life

GE LIFE

Capital Secure Plan

Type:
Capital-protected bond

Aim:
Growth linked to the performance of the FTSE 100
and Halifax House Price indices

Minimum-maximum investment:
£7,000-£1m,
Isa/Pep transfers £3,000

Term:
Five years

Return:
Up to 100% growth in the FTSE 100 and Halifax House Price Indices

Guarantee:
Original capital returned in full regardless of performance of indices

Closing date:
May 4, 2004,
April 16, 2004 for Isa/Pep transfers

Commission:
Initial 3%

Tel: 0800 783 0943

GE Life&#39s capital secure investment plan is a capital-protected bond that aims for growth and is linked to the performance of two indices &#45 the FTSE 100 and Halifax House Price index.

Brian Pack Financial Services principal Brian Pack regards GE Life as a respected company and thinks this product is okay to add to an existing portfolio as it gives a diverse investment field. He says: “This could be of interest to many of my clients. The guarantee is valuable at this point in time. The literature is very clear with all the pros and cons of the product explained.”

In Pack&#39s view, the 3 per cent initial commission offered by GE Life is the market average. However, he feels the six-year investment term is longer than average and says it could put a lot of his older clients off.

Another aspect Pack is not enthusiastic about is the use of averaging. He explains: “The averaging in the last 12 months could cost clients if markets climb at this time.”

Pack concludes by saying GE Life will face a lot of competition as various guaranteed products are introduced at this time of the year to catch the Isa market.

BROKER RATINGS:

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

Overall 7/10

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