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Keydata makes mark of innovation

Keydata Investments has brought out a guaranteed equity bond that offers investors their original capital plus a return above this when the market goes up or down.

The innovative growth plan is linked to the FTSE 100 index for six years. Investors will get their original capital back at the end of the term regardless of the stockmarket movements but the level of growth on top of this will depend on whether the index has risen or fallen.

If the index rises, investors will get 80 per cent of this growth but if the index falls they will receive 1 per cent growth for every 1 per cent fall in the index, capped at 30 per cent.

To calculate the returns, the closing level of the FTSE 100 index is recorded at the start of the term and this is compared with the average closing levels of the index during the last 12 months of the term.

As the name suggests, this product covers new ground in the structured product market by offering growth related to stockmarket falls. By doing this, it has reversed a feature of precipice bonds, where capital is eroded on a percentage basis when the index falls. This may provide an extra comfort factor for investors who are worried that with some products, they risk coming away with just their capital when they would have got some interest using a building society account.

However, investors are paying for the each-way bet this product provides by accepting less growth in a rising market than some products are offering at the moment. It is possible to receive 100 per cent return of capital and 100 per cent growth through the Woolwich capital growth plan, although this has a shorter term than the Keydata product at five years and six months.


Cape crusader

Talk about sleeping with the enemy. Prudential investment sales manager Andy Brown was laughing all the way to Cape Town recently, courtesy of Norwich Union. NU took its top salespeople on the jaunt for a week and allowed partners to come, one of whom is Brown. The Diary understands a high-level meeting was required to […]

Big benefits are in site for Aegon

Aegon Benefit Solutions is setting up a huge worksite marketing website which it hopes will reach around three million workers in three years. It is already giving information on pensions, mortgages, credit cards and insurance to over 300,000 staff in a pilot scheme which was started earlier this month. Mymoneypal, part of Aegon&#39s mybenefits workplace […]

Franklin Templeton – Templeton UK Equity Fund

Type: Oeic Aim: Growth by investing in UK companies Minimum investment: Lump sum £1,000, monthly £30 Investment split: 100% in UK equities Isa link: Yes Pep transfers: Yes Charges:Initial 5%, annual 1.5% Special offer: Initial charge reduced to 3% Offer period: Until April 30, 2004 Commission: Initial 3%, renewal 0.5% Tel: 0800 305306

Close call for property investors

Close Property Investment is giving experienced investors a chance to invest in UK commercial properties which will have rental increases of at least 2.5 per cent at the next rent review. Fixed uplift properties is an offshore closed-ended fund which is also available as an exempt unit trust for self-invested personal pensions and small self-administered […]

How to use wills to protect your clients’ wishes

March was Free Wills Month! Free Wills Month brings together a group of well-respected charities to offer members of the public aged 55 and over the opportunity to have their simple wills written or updated free of charge by using participating solicitors in selected locations around England and Wales. Research by the Law Society* highlighted that only 64 […]


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