View more on these topics

Julian Gibbs

The problem with Tessas at the moment is that they return only about 5 per cent a year and, with the recent cut in interest rates and forecast further cuts, returns are likely to reduce even more.

Credit Suisse First Boston, in conjunction with DLJ Direct, is offering maturing Tessa investors and those who have already reinvested into a Tessa-only Isa a potential for 55 per cent growth over five years – about double the likely returns on a conventional Toisa.

It is called the Global Titans Tessa plan and, unlike any other Tessa, allows investors to withdraw 10 per cent capital a year tax-free. It is linked to five separate baskets of the top 50 shares in the world, being constituents of the Dow Jones Global Titans index. Provided that none of the stocks in each of the baskets falls by more than 33 per cent from the initial level in the fifth year, then growth investors will receive an 11 per cent return on their capital for each basket.

Under the annual withdrawal plan, investors will receive a 10 per cent return on each basket.

Even taking into account the recent falls in world stockmarkets, the worst return since January 1, 1991, when the Global Titans index was instituted, would have been 130 per cent of an investor&#39s money. That would have given them a profit of 30 per cent, which is more than is likely under conventional Tessas. The maximum return was 155 per cent and the average return over the period was 145 per cent.

It is highly unlikely that, in the next five years, any of the constituents of the Global Titans index will fall by more than 33 per cent from the initial level, which will be calculated on December 31. I like this plan because of its high potential returns and total capital security.


CSAM gazes at the stars

CREDIT SUISSE ASSET MANAGEMENT CREDIT SUISSE MULTI MANAGER CONSTELLATION PORTFOLIO Type: Unit trust fund of funds Aim: Growth by investing in funds of funds. Minimum investment: Lump sum £1,000, monthly £100. Investment split: 100 per cent fund of funds. Isa link: Yes. Pep transfers: Yes. Charges: Initial 4 per cent, annual 1.5 per cent. Commission: […]

Mutual friends to welcome each other&#39s members

Britannia and Yorkshire building societies are launching a branch-sharing initiative to allow their members to use either company&#39s branches.More than two million members of Britannia and 1.8 million members of the Yorkshire will be able to pay in or withdraw money free of charge from a range of savings and mortgage accounts at branches of […]

Private Label

Last week, we featured an article on this page which described the new funding arrangements that Private Label is introducing.We are happy to clarify that, at the end of last year, Private Label served notice on its entire lender panel confirming that new lending from the fourth quarter of 2001 would be all from GMAC-RFC, […]

Old Mutual hedges towards UK expats

Old Mutual Asset Managers has introduced an offshore hedge fund that is available to high-net-worth UK expatriates.The Old Mutual global equity market neutral fund is designed to meet demands for a hedge fund from investors in South Africa, where the company was founded. It is not available in the UK, but it is being marketed […]


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