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L&G looks to protect Isa investors

Legal & General&#39s protected portfolio is a capital protected individual

savings account (Isa) aimed at cautious investors who still want to

invest in the stockmarket but who want the reassurance of some

protection for their money.

Capital will be invested over five years in zero dividend coupons from

a portfolio of 30 stocks chosen from 200 of the biggest companies in

the UK.

These will include companies such as Logica, Next, Vodafone,

British Airways, Dixons, Glaxo SmithKline, Hilton and BSkyB, covering

a wide range of sectors. Each company has been selected for its

potential for growth.

Legal & General will calculate the return on the performance of the 30

stocks over the five-year period, with the amount of growth of each

stock limited to 100 per cent. At the end of the five years the total of

the return of the 30 stocks will be divided by 30 to work out the return.

If the total return is negative then the minimum that the investor

receives will be the return of their original capital.

However, this is only available if the investor stays in the product for

the full five years. If they pull out of it before this point, then they might

not get their original capital back, although there are no other


The Legal & General product is similar to the Bristol & West five-year

GEB Isa, which is also a capital protected Isa. This invests in the

FTSE 100, Eurostoxx 50 and Nikkei 225 indices and also returns the

capital at the end of five years. However, Legal & Generals product

allows up to 100 per cent of growth, while the Bristol & West Isa only

allows up to 70 per cent growth.


New Star gazes aggressively at UK

New Star Asset Management has introduced its third fund — the New Star UK aggressive fund. This open-ended investment company (Oeic) joins the UK growth fund and European growth fund in New Star&#39s stable. These earlier funds appeared in July 2001, marking New Star&#39s grand entrance in the retail fund market. The UK aggressive growth […]

Old Mutual in attack on supermart rival Cofunds

Old Mutual has made a blistering attack on Cofunds, claiming the average annual returns on funds offered by its supermarket rival are significantly lower than funds on its own Selestia platform.Old Mutual says the annual returns over the last three years on the 31 UK equity funds available from the four founders of Cofunds – […]

M&G to raise fees across Oeic range

M&G is set to hike charges across its entire open-ended fund range when it converts its unit trusts to Oeics at the start of next month.The proposal, outlined in a letter to unitholders, will see the admin fee on its funds increase by seven basis points to 0.15 per cent from 0.08 per cent. The […]

Genesis Home Loans – Genesis Sapphire Fixed Rate

Monday, 8 October 2001.Type: Self-certification fixed rate.Fixed term: Until April 1, 2003.Fixed rate: 7.24 per cent.Minimum loan: £25,001.Maximum loan: Up to 75 per cent of valuation subject to a maximum of £250,000, up to 60 per cent subject to a maximum of £400,000.Income multiples: 3.75 times principal income plus second or 3.25 times joint.Arrangement fee: […]

The return of emerging markets

Ewan Thompson, Head of Emerging Market Equities, Neptune Although in political terms 2016 will be remembered for the seismic shocks of the Brexit vote and Trump’s presidential victory, the year was also a watershed for the global economy and emerging markets in particular. Following five years in the wilderness, the conditions are now in place […]


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