View more on these topics

Keydata income plan will invest in insurance policies

Keydata is offering a secure income bond which aims to pay 7.5 per cent annual income over five years without relying on equities.

The fund will invest in a mix of cash and insurance contracts. It is designed to appeal to income investors who are put off by the perceived risk of investing in equities or high-yield bonds.

It invests in corporate protec-tion policies, which it buys from companies when the insured individuals retire. Policies mature when the ex-employees die. They are priced on a KPMG model that is stress-tested every six months to ensure accuracy.

Risk is controlled through asset allocation and issuers of insurance contracts in the portfolio must have a minimum A rating from Standard & Poor’s.

The fund offers trail commission, despite being closed-ended allowing IFAs to rebate initial commission and switch clients out of equity products without penalties. Minimum investment is 4,000. The fund closes on September 16, 2005.

Hedley Asset Management managing director Mike Shaw says: “Recommending this type of product, you have to look very carefully at who it is underwritten by. Generally speaking, we do not recommend such products to our clients.”


Special delivery

UK all companies fund is the most consistent performer in rising or falling markets, says Philip Scott

IN Partnership’s technological strategy sees it reap in more than 1m in profits

IN Partnership has seen ann-ual profits soar from 10,000 last year to more than 1m this year and is warning that older networks might struggle in an increasingly technological environment. The Horsham-based network has focused its strategy on IT giving it net profits of 1.067m to June 30 year-end. Currently with 200 firms and 500 […]


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