View more on these topics

Julian Gibbs

A very interesting new product from Keydata – the defined growth plan – gives 52 per cent growth over five years, equivalent to 10.4 per cent simple interest a year, even if the FTSE 100 index does not go up over that period.

The plan also pays out this growth if the FTSE 100 falls at any time during the term of the plan but returns to at least its starting level.

Even if the market goes down over a five-year period, which is highly unlikely from current levels, then investors will still receive a full return of capital unless the index falls by more than 50 per cent from its starting level and fails to recover when the plan ends. If this were to happen, capital would be reduced by 1 per cent for every 1 per cent of index underperformance.

This would mean that the FTSE 100, which is now at around 4,500, would have to fall to its lowest level for over 13 years for capital to be at risk.

This plan is suitable for Isa investments and also for Sipps and Ssas as well as direct investments. Returns would be tax-free on Isas, Sipps and Ssas.

For direct investments, where the investor makes no other capital gains in the first year and provided that the tax-free capital gains allowance does not reduce, around £16,000 could be invested without paying capital gains tax.

The capital security underwriting the product is provided by medium-term loan notes issued by financial institutions with a credit rating of AA or better.

This product should be particularly attractive to disenfranchised with-profits bond investors seeking an investment away from the underperformance penalties afflicting their existing bonds. It is a good way for investors in closed funds to recover their money over five years and make some profit.


Progress for pensions

The new Secretary of State for Work and Pensions Alan Johnson has asked the savings industry for its views on how to get people saving again. This is the best start to his tenure that he could have made. Johnson already seems to be carrying some weight of expectation of a change in direction. A […]

Parting shots

Note to Britannic Asset Management&#39s Francis Ghiloni – there is a long way to go yet. The Diary thought Ghiloni was on to the world record for leaving do&#39s with an amazing six, including one in London, but no, we have a new champion with 14 parting bashes.who is this bon viveur extraordinaire? The man […]

Rickman Tooze back in business with MBO

Rickman Tooze IFA advisers have struck a deal to buy the assets of the firm forced into administration by a 350 per cent PI increase and crippling pension review costs. A group of the firm&#39s top-earners has succeeded in buying the assets of the business for an undisclosed sum after it went into administration on […]

SPML launches new prime plus range

Southern Pacific Mortgage is launching a new prime plus range together with fixed and discounted offers. The aim of the prime plus range is to offer a range of products for all customer credit profiles ranging from non-conforming to mainstream. Prime plus is available up to 85 per cent loan to value, and features 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