View more on these topics

Investlife bond splits across 10 sectors

Investlife Luxembourg has unveiled the higher income and growth bond, an offshore bond that is linked to the performance of 10 sectors across Europe, including the UK.

The bond has a four-year term and is linked to banks, en ergy, healthcare, chemical, media, insurance, technology, telecommunications, automobiles and food & beverage sectors. It offers investors the choice of quarterly income of 2.4 per cent, annual income of 10 per cent or a growth option of 43 per cent.

The original capital is returned to investors providing certain conditions are met. None of the 10 sectors must fall by more than 35 per cent below their starting values at any point during the term.

But even if this happens, there is another safety feature that overrides it. If the value of all 10 sectors is at last 25 per cent higher than their starting levels at any point during the term, investors get their original capital back even if a sector falls by more than 25 per cent.

However, capital is reduced if one or more sectors fall by more than 35 per cent without the overriding safety feature kicking in. Where this happens, capital is eroded by 0.25 per cent for every 1 per cent full in each sector.

This is not a product for investors for whom it is vital to protect their capital at all costs. It only takes a single sector to fall by more than 35 per cent for capital erosion to become a possibility. Although this may be mitigated by a 25 per cent rise in all sectors, there is no guarantee that this will happen.



“Definitely, yes, to make sure people are giving genuine reasons for a transfer and are not taking full commission when a transfer is taking place.”Jeremy Newbegin, The Ethical Partnership“I don&#39t know. I don&#39t see any reason why they should do.”Alan Shackcloth,AG Shackcloth & Co“If, at the end of the day, it will help everyone, then […]

More than expected: Richard Leeson, Scottish Equitable

IFAs have more to consider than expected from this year&#39s budget. The incentives to small business owners in the form of reduced CGT will generate even more high-net-worth investors as those entrepeneurs sell businesses at or before retirement with consequent inheritance tax liabilities.The announcement of a review of the rules on residence and domicile is […]

At last, some good news for IFAs from the Chancellor

It was a Budget about insurance. National Insurance, that is. Chancellor Gordon Brown unambiguously ruled out private medical insurance and social insurance to pay for an improved health service, bunging a penny on National Insurance to provide an extra £8bn for the NHS.To ensure the billions will be spent properly, there will be yearly NHS […]

Old Mutual Fund Managers – UK Select Large Cap Fund

Tuesday, 16 April 2002 Type: Unit trust Aim: Growth by investing in FTSE 100 and mid cap companies Minimum investment: Lump sum £1,000, monthly £50 Investment split: FTSE 100 90%, mid cap companies 10% Isa link: Yes Pep transfers: Yes Charges: Initial 4%, annual 1.25% Commission: Initial 3%, renewal 0.5% Tel: 0808 1002715

Get your New Year off to a flying start

Ross Jackson, Senior Marketing Manager There’s no denying that these days we expect things quickly. You might have noticed it first-hand during the flurry and rush of the Christmas period. The fact is that in a world of smartphones, social media and click and collect, most clients expect to get an instant response and a […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm