View more on these topics

Keydata multiplies choice

Keydata Investment Services has established a fourth issue of the extra income plan, a guaranteed equity bond linked to the FTSE 100 index during a five-year term.

The bond initially offers investors a choice between two options. Option one provides a further choice of 8 per cent income a year, 1.93 per cent income a quarter or growth of 43 per cent at the end of the term. Alternatively, investors can choose income of 6 per cent a year, income of 1.44 per cent a quarter or 32 per cent growth at the end of the term under option two.

Investors will get all their original capital back whatever option they chose provided the FTSE 100 index never falls by more than 40 per cent between May 19, 2003 and May 19, 2008. Where the index breaches this safety net without recovering, investors will lose a percentage of their capital.

With option one investors will lose 2 per cent for every 1 per cent fall in the index, which means no capital will be returned if the index falls by more than 50 per cent. Option two means investors will lose 1 per cent for every 1 per cent fall in the index.

This product is one of the more complicated, riskier guaranteed equity bonds. Although it offers a range of options to suit investors&#39 objectives and risk profiles, this increases its complexity.

In addition, investors&#39 capital is not completely protected and the price option two investors pay for higher returns than option one investors is a greater degree of capital loss if the safety net fails. This suggests this product may only be suitable for sophisticated investors who understand that capital protection does not necessarily mean low risks.


HSA offers cash plan as employee benefit

Healthcare cash plan provider HSA has introduced a cash plan for the employee benefit market, which waives premiums for one month for people who are changing jobs. The HSA corporate cash plan is available on a company paid or voluntary basis. It has four levels of cover with weekly premiums ranging from £1.70 to £6.80 […]

Human nature

One of the principal challenges for any adviser wanting to operate successfully in the stakeholder market is how to do so profitably.The paltry levels of commission that can be afforded out of the price-capped product have turned this Government&#39s flagship pension product into something of a Marie Celeste.However inadequate the direct remuneration may be, all […]

Datanite – Datanite

Monday, 31 March 2003 Aim: Growth by investing in the development and manufacture of silicon carbide technology used in the power and telecommunications industries Minimum investment: Lump sum £2,000 Opening/closing dates: March 28, 2003/April 5, 2003 Charges: Implicit Commission: Initial 2.5% Contact:

Chief energy regulator to become next FSA chairman – reports

The Treasury may announce it is appointing outgoing chief energy regulator Callum McCarthy as the new chairman of the FSA as soon as this week, the Sunday Telegraph has reported.Quoting an unnamed Government source, the newspaper says McCarthy, the former Barclays senior executive who headed first its Japan and then North American operations, is on […]

Trusts and Taxations

Take a look at the trusts and trustee taxation video – The definition and classification of trusts. Once you’ve viewed the boxset, visit our Test Centre to test your learning and get your CPD certificate. View here


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