View more on these topics

Merrill Lynch to Give choices on structured plans

Merrill Lynch Investment Managers is aiming to introduce two new structured products by the end of the year.

Its stepped growth fund and income II fund, which will be listed on the Dublin Stock Exchange, will be the latest in a series of transparent and flexible structured products from MLIM.

The funds will be made up of a number of different share classes and tailored for the risk-averse investor looking to diversify away from traditional equity or fixed-income investments.

Investors can choose investment periods of five or seven years and can take their return as income or capital growth.

As the shares are quoted investments, they can be sold through a stockbroker.

For a minimum investment of £7,000, investors over a seven-year period will receive an annual fixed dividend of 8p on income shares paid in six-monthly instalments on a 100p launch price. Returns on income shares with a five-year life will be 7p.

Growth shares offer a maximum one-off payment at the end of the investment term of 65 per cent over seven years or 40 per cent over five years.

All share classes will pay the maximum return unless the FTSE 100 falls below 40 per cent of its initial level set in mid-December.

Head of UK retail Michael Jones says: “Merrill Lynch stepped growth and income has a clearly defined risk profile, is easy to understand and should be a welcome addition to a typical private client portfolio, especially in current market conditions. This fund is designed for investors who want high returns with a lower amount of risk.”

Recommended

Verity&#39s view

At a recent conference of IFAs, a poll was taken of the 600 delegates to find out how many of them believed their businesses would survive. Fifty per cent said they would need additional capital to withstand the impact of the Sandler and FSA proposals.But what is it about these reports that is so damaging? […]

Lenders fear EU credit squeeze

Lenders are warning that half the UK mortgage market could be affected by a restrictive new European directive on consumer credit which may be fast-tracked into legislation.Standard Life Bank says the directive risks wiping out remortgaging, equity release and offset and flexible mortgages or making them more expensive. The bank is also worried that the […]

Pickering rejects annuity purchase compulsion

Pensioners should not be forced to buy an annuity but must ensure they have a regular income for life, according to Alan Pickering.Speaking at the Chartered Insurance Institute&#39s annual conference in Birmingham last week, Pickering said he disagreed with the notion that the Government should dictate how the income stream from pensions is decided.He did […]

Sandler attacks industry failure to motivate savers

The financial services industry must not view the prospect of pension compulsion as a redemption for its own failure to create demand for its savings products, warned Ron Sandler.In explaining why the compulsion issue was only touched upon in his report in July, Sandler told delegates at the CII conference that the industry has much […]

Flexible reversionary trusts and estate planning

The suitability of different estate planning solutions will depend on the individual’s own circumstances, needs and objectives. When considering the different solutions available there is a trade-off between inheritance tax (IHT) efficiency and access. Overall a flexible reversionary trust provides a greater level of flexibility than a discounted gift trust and can offer individuals a […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment