View more on these topics

Merrill offers protection

Merrill Lynch HSBC has designed the global growth protected investment product, a guaranteed equity bond that is only available through the internet.

The bond tracks a basket of four stockmarket indices the FTSE 100, Standard & Poor&#39s 500, Nikkei 225 and Eurostoxx 50 over a five-year term. If it is held until maturity, investors are guaranteed to get back 100 per cent of their original capital plus a guaranteed minimum return of 15 per cent.

If the average performance of the stockmarket indices is greater than 15 per cent, investors will get a bonus of up to 40 per cent. This means that the maximum potential return is 155 per cent of the original investment.

The global growth protected investment product can be used as a home for maturing tax exempt special savings accounts for those who want to tie their money up for another five years. It could also suit investors who want stockmarket exposure without the full risks of direct stockmarket investments.

The guaranteed minimum return is an attractive feature as some bonds only guarantee that the original capital will be returned. However, investors who do not hold the bond until maturity are not covered by the guarantee and could put their original capital at risk.

The EuroStoxx 50 index rose from 2282.22 points on May 16, 1997 to 4237.31 points on May 16, 2001.

Recommended

Inter-Alliance top for growth

IFAs are among some of the fastest-growing companies in the UK, accordingto a survey by management consultancy Deloitte & Touche. The Deloitte & Touche Indy 100 survey of companies in the UKmiddle-business market found Inter-Alliance and Bank-hall InvestmentAssociates to be among the 100 best-performing companies in the UK.Inter-Alliance took seventh position and Bankhall was 43rd. […]

Scheme to probe complaints against FSA

The FSA has published its final arrangements for inv-estigating complaintsagainst itself from firms and con-sumers. Its scheme will start onSeptember 1. The scheme covers procedures for dealing with allegations ofmisconduct by the FSA.

Irish find room for charges in new pension plan

Less than a week after stakeholder was launched in the UK, the Irishgovernment announced plans for “a key element in our comprehensive pensionplans for the 21st Century”. The announcement referred to the planned introduction of the PersonalRetirement Savings Account and the accompanying description of it aslowcost, easily accessible and portable will inevitably invite comparisonswith stakeholder. […]

BFS Investments – ShapeIT

Monday, 21 May 2001.Aim: Income and growth by investing in investment trusts.Minimum investment: £2,000 per share class.Investment split: Investors choice.Charges: Initial 3 per cent, annual 0.75 per cent.Commission: Initial 3 per cent, renewal 0.5 per cent.Tel: 0800 7319222.

Powerful estate planning tools ignored or forgotten by wealthy Brits

Canada Life IHT Survey 2016 Only a quarter of wealthy Brits have sought professional estate planning advice to ensure their families don’t pay more tax than required More than a quarter don’t even have a will and just one in five have gifted money Many say they do not need these tools but families would […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment