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Lloyds TSB threes up links

Lloyds TSB has introduced a guaranteed equity bond that offers investors a minimum return of 20 per cent plus their original capital after five years.

The London guaranteed equity savings account is only available over the phone. It is linked to the performance of three stockmarket indices, the FTSE 100, Eurostoxx 50 and Nikkei 225. To calculate the final return, the monthly average of each index is recorded then added together to produce a growth percentage. Investors get 100 per cent of this growth.

The strong point of this product is that there is a minimum return above that of the original capital, which is comforting for investors who are wary of risk. Other guaranteed products that are aimed at the lower end of the risk scale, such as Newcastle Building Society&#39s recently established capital safe bond, do not have this feature. The Newcastle product tracks the same indices as the Lloyds TSB product, but growth is capped at 85 per cent.

The Nikkei 225 fell from 21612.30 points on October 18, 1996 to 10474.85 points on October 18, 2001.Over the same period, the FTSE 100 rose from 4053.083 points to 5116.030 points and the Eurostoxx 50 rose from 1734.83 points to 3469.78 points.


Rock and C&G are poised to buy Mortgage Brain stakes

Northern Rock and Chelten-ham & Gloucester are poised to acquire stakes in Mortgage Brain in moves which would see the trading platform account for 80 per cent of the market.The two lenders admitted this week that they are on the brink of signing agreements with the four owner lenders – Nationwide, Halifax, Alliance & Leicester […]

Skandia to rebrand bond range

Skandia is rebranding its bond range and offering enhanced additional life cover to bond investors.Skandia&#39s onshore bond range which includes its investment, capital and income and distribution bond, will now come under the &#39multi&#39 banner as with the life offices Multimanager fund supermarket.IFA clients can select life cover of up to 125 per cent of […]

Field calls for new basic pension

The Pensions Reform Group, led by former welfare minister Frank Field, has launched proposals to abolish pensioner poverty by creating a new basic state pension. The report proposes a new funded pension, the Universal Protected Pension, to be built up over 40 years and merged with the existing pay-as-you-go National Insurance based state pension. This […]

Threadneedle Investments – Threadneedle Strategic Bond Fund

Monday, 15 October 2001.Type: Oeic.Aim: Income and growth by investing in high yield and investment grade corporate bonds.Minimum investment: Lump sum £2,000.Investment split: Investment grade corporate bonds 60 per cent, high yield corporate bonds 40 per cent.Yield: 7.5 per cent.Isa link: Yes.Pep transfers: Yes.Charges: Initial 3.75 per cent, annual 1.25 per cent.Special offer: Initial charge […]


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