View more on these topics

Legal & General bond grows and protects

Legal & General has established the index growth and protection plan, a guaranteed equity bond that is linked to the FTSE 100 index for a term of five and a half years.

The bond guarantees the return of all the original capital at the end of the term regardless of the performance of the index. Investors also receive 70 per cent of any growth in the FTSE 100 during the term, but this operates as a participation rate. For example, if the FTSE 100 index increases by 50 per cent, the return would be 70 per cent of this &#45 35 per cent.

When calculating the return, an average is taken of the closing levels of the FTSE 100 index during the first six months of the term and compared with an average taken during the last six months.

This bond offers more capital protection than some guaranteed equity bonds such as Keydata&#39s dynamic growth plan, which is also linked to the FTSE 100 index for five and a half years. The Keydata bond offers investors five times the growth of the rise in the FTSE 100 index up to a maximum of 60 per cent, but capital is only returned if the FTSE 100 index does not fall by more than 50 per cent during the term.

Other bonds such as Abbey National&#39s safety plus growth bond extend the guarantee to a minimum level of growth above the return of capital, but the potential drawback with this is growth is capped at 4.1 per cent every six months during the term. This produces a maximum return of 41.1 per cent, whereas the Legal & General product could potentially produce higher returns.


Future Mortgages lightens up self-cert market

Future Mortgages is aiming to move away from specialist sub-prime lending to what it considers to be the more mainstream self-certification market.It is launching a new self-cert product for borrowers who have only one minor credit blip.The self-certification lite mortgage is available at up to 85 per cent loan to value and brokers can choose […]

New Star distributes income

NEW STAR INVESTMENT FUNDS MANAGED DISTRIBUTION FUND Type: Oeic Aim: Income by investing in bonds and equities Minimum investment: Lump sum £1,000, monthly £100 Investment split: Bonds 65%, equities 35% Isa link: Yes Pep transfers: Yes Yield: 5% net a year Charges: Initial 5%, annual 1.25% Commission: Initial 3%, renewal 0.5% Tel: 0845 6088702 The […]

New Govt agency to clamp down on crime barons

A new Government agency launches this week with the power to confiscate or tax cash and property where the owner cannot prove they were gained by legitimate means.The Assets Recovery Agency gets its powers through the Proceeds of Crime Act that this week also brings in a duty on IFAs to report suspected evidence of […]


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