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Macquarie structures property plan

Macquarie Bank has established a structured product that provides exposure to the listed UK commercial property market through the FTSE Epra/Nareit UK Index.

The index is designed to track the value of property companies and Reits listed on the London Stock Exchange. As at May 10, 2010, there were 30 securities on the index, including Land Securities, British Land, Hammerson and F&C Commercial Property Trust.

The Macquarie FTSE UK property growth plan provides 85 per cent of the growth in the index at the end of a five years and two week team, with returns capped at 75 per cent of the original investment.

Investors will receive a full capital return at the end of the term provided the index does not fall by more than 50 per cent by the end of the term. This is the index average over the last six months of the term. If the 50 per cent safety net is breached, investors lose 1 per cent of their capital for each 1 per cent fall in the index.

The outlook for UK commercial property is unclear, as it has the potential to produce strong returns but rental income could be constrained by weak economic recovery. Against this backdrop, a capital-protected product which allows investors to gain exposure while hedging their bets could be attractive to some investors. Macquarie is the only structured product provider currently offering this, but not all investors will accept capped returns to pay for the cost of capital protection. These investors may prefer exposure to the index through an exchange traded fund from iShares.


Property downturn reveals pension risks

Complaints to the Financial Ombudsman Service over pension products and service dropped by 27 per cent to 3,594 for the year ended March 31 from 4,940 the previous year. Personal pension complaints fell by 20 per cent to 1,727 from 2,173 although the products still received by far the most complaints of all pension products. […]


Northern Rock tightens interest-only policy

Northern Rock has tightened its policy on interest-only lending by reducing the maximum loan to value from 85 to 75 per cent and restricting the repayment vehicles it accepts.

Neptune Global Income: Is Japan the best dividend market in the world?

By George Boyd-Bowman, Fund Manager at Neptune The Neptune Global Income Fund seeks exposure to the very best – and often overlooked – income opportunities from across the world. Unconstrained by benchmarks, the fund currently has 24 per cent invested in Japan, differentiating the high conviction portfolio from many of its peers. Watch Neptune Fund […]


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