View more on these topics

Investlife wheels out second premier bond

Investlife Luxembourg, a sister company of Pinnacle Insurance, has unveiled the second edition of its premier income and growth bond.

This is linked to the performance of eight industry sectors across Europe including the UK over a five-year term. It tracks the performance of the largest stocks in the banks, chemical, energy, food & beverages, health, insurance, media, and telecoms sectors.

Investors can choose annual income of 10 per cent, quarterly income of 2.3 per cent or growth at 60 per cent at the end of the term. The income options are slightly lower than the first edition offered in October last year. The previous options were annual income at 10.25 per cent annual and quarterly income of 2.4 per cent but the growth option remains unchanged.

The level of all eight sectors is recorded at the start of the term and again at the end. If, at the end of the term, the worst performing sector is at the same level or higher than at the start, investors get their capital back along with income or growth payments. But if the worst performing sector is lower at the end of the term, growth investors get their original capital while income investors get their capital back less the income they have already received.

Income may be a priority for some investors and they may be looking for a product like this because interest rates on savings accounts are low and stockmarkets are still uncertain. However, the price investors pay for capital protection is the risk coming away with only their original investment and they could miss out on potentially higher returns elsewhere if stockmarket conditions and interest rates change within the next five years.

Recommended

Global Mortgage Service – Three Year Fixed Rate

Thursday 3 January, 2002 Type: Buy-to-let fixed rate mortgage. Fixed term: Until January 31, 2005. Fixed rate: 5.25 per cent. Minimum loan: £25,000. Maximum loan: £1m. Income multiples: Rental income must be 130 per cent of monthly mortgage payment. Arrangement fee: £195. Redemption fee: 3 per cent of advance in year one, 2 per cent […]

1

Canada Life International extends fund range

Canada Life International is adding seven external fund links to its range of offshore bonds. The seven, all from JP Morgan Fleming Asset Management, brings CLI total external links to over 80 from 11 fund managers. The funds include the JPMF premier equity growth , UK dynamic, European smaller companies, FF-Eastern European, FF-US strategic value, […]

The Exchange launches income drawdown assessment tool

The Exchange is launching a pension or income drawdown analysis facility as part of its pensions tools for IFAs.The analysis tool designed in conjunction with actuarial software specialists Pensions & Actuarial Services aims to help IFAs make a quick assessment over whether income drawdown is appropriate for their client.It can be used regardless of whether […]

Norwich and Peterborough – Remortgage Scheme

Thursday, 3 January 2002. Type: Flexible tracker mortgage. Tracker term: Term of loan. Tracker rate: Bank of England base rate plus 0.5 per cent. Minimum loan: £1,000. Maximum loan: Up to 95 per cent of valuation subject to a maximum of £2m. Income multiples: 3.25 times principal income plus second or 2.6 times joint. Features: […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment