View more on these topics

Meteor and actuaries devise deposit plan that links interest to FTSE 100

Meteor Capital Holdings has teamed up with actuarial consultancy firm Intersolve to launch a three-month notice deposit plan.

The cashcade deposit invests clients’ money in a pooled deposit held with AAA-rated Rabobank and allows them to link interest gained to rises in the FTSE 100.

Investors can also choose to take traditional deposit interest linked to Libor at no cost, enabling them to move into cash if they believe that the stockmarket will decline or stagnate.

They can shift to traditional interest immediately but can only move back to the FTSE 100 on four dealing days a year. Exposure to the index is allocated at the start of each quarter and one year after each allocation, with any rise in the index locked in and paid as interest.

The plan’s booster option offers the choice to reinvest interest in the FTSE 100 at a 200 per cent limit of the capital balance.

Minimum deposit for the plan is £20,000 and withdrawals can be requested at any time subject to three months’ notice.

There are no trading costs and trail commission is 0.25 per cent a year. The plan is aimed at private and institutional investors and provides 100 per cent capital security subject to counterparty risk.

Cashcade director David Lloyd believes the plan is an alternative to cash. He says: “With this plan, your capital is not linked to the stockmarket at all, only the value of your interest.”

Baronworth Investment Services director Colin Jackson says: “It is not the easiest product to understand. It looks quite interesting and if you are optimistic that the markets will go up and like a punt, you could get a good return.”



HSBC Blues

This week HSBC caused a bit of a stir in the UK mortgage market by revealing it would be dedicating £1bn to 90 per cent lending.

High Fidelity in the groove

Fidelity International UK retail managing director Gary Shaughnessy is upbeat about the opportunities in the market at the moment.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm