View more on these topics

GE Life bonds with property mix

GE Life&#39s capital secure investment plan is a capital-protected bond that is linked to the FTSE 100 index and the Halifax House Prices Index over a six-year term.

Investors in this product receive their original capital back regardless of how the indices perform and also get 100 per cent of the average growth across both indices. When calculating the returns, the closing level of the FTSE 100 index is recorded on May 18, 2004 and is compared with the average closing levels between June 2009 and May 2010. For the Halifax House Price Index, data published in May 2004 covering the previous month will be used and compared with the average published levels between May 2009 to April 2010.

Newcastle Building Society is offering two similar product, issues three and four of the guaranteed mixed asset bond, but both have a five-year term. Like GE Life&#39s product,, issue four of Newcastle&#39s guaranteed mixed asset bond offers 100 per cent of the growth in the FTSE 100 index and Halifax Price Index. It also has 12-month averaging at the end of the term, with the obvious difference being that the term is one year shorter than GE Life&#39s product. The Newcastle product may have more appeal as some investors may feel six years is too long a period to tie up their money.

Issue three of Newcastle&#39s guaranteed mixed asset bond has an extra twist as it places 33 per cent of investors&#39 capital into a one-year fixed rate bond that pays 5.5 per cent gross. The remainder is placed into the mixed asset bond but investors who choose this product will get only 75 per cent growth at the end of the term.

Recommended

Standard Life Bank moves into profit

Standard Life Bank has moved into profit for the first time, reporting profits of £4.6m a year ahead of expectations. Mortgages under management grew from £7.2bn to £8.7bn and gross mortgage lending rose from £3.1bn to £3.4bn. SLB says it is well placed for future growth, as it now has the ability to access all […]

Clerical Medical back for good

Clerical Medical has returned to the commission-based group pension market after an absence of almost two and a half years because its systems could not cope with the amount of business it was attracting. The company is now set to woo IFAs with new features on its group pensions such as online fund valuations for […]

Pension edge

An extremely petulant Chancellor announced that if the National Audit Office concluded that more than 5,000 people were affected by the introduction of a lifetime allowance on pension funds, he might not bother with the introduction of pension tax simplification at all. Leaving aside such a juvenile response to a perfectly reasonable debate, what might […]

Sesame offers two network options for loan brokers

Sesame is offering mortgage brokers two regulated network options under mortgage regulation along with the opportunity to remain directly authorised while using its support services. Appointed representatives will be able to join Mortgage Select, which has a panel of lenders, or Mortgage Market, which covers every lender in the market. Procuration fees are higher for […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment