View more on these topics

Eurolife does its sums

Eurolife Fund Managers has introduced the investment plus plan, a guaranteed equity bond which is linked to the performance of three stockmarket indices over a term of five years and two months. It is also available as an Isa.

Investors can choose annual income of 10 per cent, monthly income of 0.8 per cent or two growth options. Capital growth opportunity offers 65 per cent growth. Like the income options, the original capital is returned unless any of the indices fall below 35 per cent. If they do, investors will still get their original capital back providing the indices are 95 per cent of the starting value by the end of the term. the capital will be reduced by 1.25 per cent for every fall in the index below 95 per cent.

The capital secure option offers a lower level of growth at 45 per cent and full capital protection. If the closing level of the index is at least 95 per cent of the starting value, investors get a total return of 145 per cent. But if the index is lower, investors only get their original capital.

This product is similar to Scottish Mutual’s income & growth plan 2, which also has a term of five years and two months. However, this is linked only to the performance of the Eurostoxx 50 index and investors risk losing their capital if it falls by 20 per cent.

Eurolife’s spread of indices allow it to provide slightly higher returns and capital is at risk only after a fall of at least 35 per cent. But the downside is that the returns of one index could be diluted by another.

Recommended

Big decisions in the small print

Are network contracts “unfair”? The vast bulk of network-related work that we see stems from the fundamental issue over contracts signed when the brave new world of the FSA was not even thought of.The issue over whether a contract is fair or not is one which really does not have a basis for a legal […]

Complainants welcome here

The FSA recently surveyed a number of consumers and found that 11 per cent had made a recent complaint to their financial services provider. This figure may be surprisingly low when one considers all the recent upheaval and catastrophes in the life and pensions industry. However, the worry is that this proportion of the survey […]

Industry will be hurt by CP121

Open letter to David Severn, Head of polarisation review, FSA Should the proposals outlined in the CP121 come into being, I believe that this willdamage the financial services industry and infrastructure andconfuse consumers by over-complication.The FSA needs to understand the basics of the industry it is empowered to regulate.The vast majority of products offered by […]

RBS discount deal at 3.45%

The Royal Bank of Scotland is offering products designed exclusively for intermediaries, including a discounted loan.The limited edition discount mortgage slashes RBS&#39s current standard variable rate by 2.5 per cent to 3.45 per cent from 5.95 per cent until June 2003. There is a further discount of up 0.75 per cent from its SVR until […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment