View more on these topics

Jubilee stands on European Podium

Jubilee Financial Products has introduced the Podium deposit account, a structured product which is linked to the performance of a basket of 50 European blue-chip stocks over a five-year term.

The product provides a potential return of up to 50 per cent at the end of the term, which is classed as income and subject to income tax.

The return is dependent on the performance of the underlying share basket. If the final level of all the shares are at or above their initial levels, investors will receive 50 per cent growth.

This return is reduced by 2.5 per cent for eachshare that is below its initial value at maturity.If the final level of 20 or more of the shares are below their respective initial values, the capital protection will kick in.

Investors receive no growth but get their original capital back. Capital protection will only apply if the product is held until maturity, so investors who makewithdrawals may get back less than they invested.

According to the Structured Retail Products adviser website, this product is unique in linking performance to a basket of shares. Some investors will like the full capital protection and the diversity of the underlying sharebasket.

However, the performance of each stock counts towards the final return andthe maximum 50 per cent return will only be achieved if none of the stocks falls by the final day of the term. Some investors may also prefer the returns to be taxed as a capital gain.


A DGT with 100% access and 100% discount?

Clare Moffat, Technical Manager, looks at the benefits of pensions from an IHT perspective. 100% access and 100% discount – what type of wrapper could this be? A pension! Post flexibility there is 100% access (for those over 55) and normally pensions are inheritance tax (IHT) free. With flexibility the options available on death mean […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment