Eurolife Assurance is offering investors in its secured bond structured product half their original investment back if they want to walk away from the company now.The alternative is to stick with the group’s five-year restructuring plan which aims to repay 88 per cent of the original investment by 2009. The bond was marketed in 1999 and raised around 17m by offering 6.5 per cent income for five and a half years or 40 per cent growth with capital protection but it defaulted, failing to repay money in January. An investor with a 7,000 Isa investment in the growth plan will get the first repayment of 2,763.60 on September 30, with additional annual payments between 2006-09 totalling a further 3,258. By accepting the new offer, investors would forfeit these additional payments for a one-off payment of 736.40 on top of the initial payment and draw a line under their involvement with Eurolife. The firm has so far had just 120 requests from investors to cash in early. Managing director David Wootton says: “It is purely an option for those who want to get out early, I do not expect many people to take it but we are just responding to requests. I am not expecting wholesale take-up of the offer, nor would I necessarily recommend anybody to take it because they are forfeiting the later payments.”
Standard Life life and pensions chief executive Trevor Matthews has dismissed Adair Turner’s suggestion of a Swedish pension model, saying the plan would take the UK back 50 years. He says Turner is “mesmerised” by charges when other factors are more important. But Prime Minister Tony Blair made a speech to the Labour conference on […]
Treasury Economic Secretary Ivan Lewis has attacked LibDem proposals for a free financial advice network as bureaucratic and unjustifiable. Lewis told a PIMA and IMA conference fringe event at the Labour conference in Blackpool that more needed to be done to help people on low incomes but this was not the way forward. He suggested […]
Accountability is a funny thing. Everyone recognises it is a good thing, yet few people rush toward it with open arms.
JO Hambro Capital Management
JOHCM American Growth Fund
Individual investors believe they need professional help, but they want more than just investment recommendations from their financial providers.
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