View more on these topics

Low-cost problems

I could not agree more with Len Warwick&#39s article in Money Marketing on maturing endowment policies.

There are, however, two points that about which we as an industry need to educate our journalistic friends.

No endowment policy will produce a shortfall at matur-ity. That is a fact. I am old enough to remember non-profit endowments and even these guaranteed to pay off the loan.

What we are talking about is low-cost endowments. This could cause the problems and there are many reasons for this, not least the unrealistic projec-tions, expensive life cover and high charges.

The other point to make is that not all low-cost endowments are with-profits contracts. It would be interesting to know what the ratio of with-profits to unit-linked policies is and how the maturities compare, assuming that any of them actually run to maturity, but that is another story.

Chris Latham

Moorgate House,Milton Keynes

Recommended

Sellers shun free home pack pilot

The Government is offering free trials of the home condition report to selected estate agents throughout the UK. Nearly 40 estate agents have been randomly selected in Cardiff, Coventry, Hertfordshire and Sheffield to trial the biggest element of the Government&#39s seller&#39s packs. Sellers who place their property with one of these agents are offered a […]

Credit Suisse waives initial charge on FOF range

Credit Suisse Asset Management is temporarily waiving the initial charge into its funds of funds to mark the two-year anniversary of the multi-manager range. CSAM&#39s standard 4 per cent initial charge is falling to 0 per cent until November 28 or until the 11 funds hit £100m. IFA commission will fall to 1 per cent […]

Three-year fix for adverse credit

Kensington Mortgages is offering a three-year fixed-rate mortgage for adverse-credit clients. It says it is the first specialist lender to offer such a deal. Rates on the mortgage start at 5.75 per cent and are fixed until November 30, 2006. There are no early repayment charges after the first three years. Kensington has extended the […]

Yorkshire Guernsey – Equity Linked Bond

Type: Guaranteed equity bond Aim: Growth linked to the performance of the FTSE 100 index Minimum-maximum investment: £10,000-£500,000 Term: Five years Guarantee: Original capital returned in full regardless of performance in index Return: 100% growth at end of term Closing date: September 23, 2003 Commission: None Tel: 0044148 1710 150

Seeking quality in uncertain markets

By Ewan McAlpine, Senior Client Portfolio Manager In uncertain times, investors naturally seek safety. But in fixed income markets, what does that really mean? Ewan McAlpine outlines the approach RLAM’s Fixed Income Team will be adopting across its credit funds in response to potentially volatile markets this year. Click here for full article

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment