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Newcastle builds balanced equity bond

Newcastle Building Society has introduced the second issue of its
balanced equity bond.

This bond marries the fifth series of Newcastle Building Society&#39s
global guaranteed equity bond with a fixed rate savings account.
Investors must place half their investment into each element.

Interest on the savings account element is fixed at 7.5 per cent gross
until March 28, 2002 and no withdrawals can be made before that
date. The global guaranteed equity bond element is linked to three
stockmarket indices &#45 the FTSE 100, Nikkei 225 and Eurostoxx 50
over a five-year term.

A full capital guarantee ensures that investors get all their original
investment back, even if the indices show poor performance during
the term. The final return is based on 85 per cent on the average
growth in the three indices between September 28, 2001 and
September 28, 2006.

The bond may attract investors with building society accounts who
are looking for something different after feeling the impact of the
latest cut in interest rates. Splitting their investments between the two
elements enables them to boost their returns without risking their
capital through direct stockmarket exposure and the use of three
indices ensures diversity.

However, this product may not suit everyone as they cannot decide for
themselves how much to place in each element and some investors
may prefer a longer fixed rate on the savings account element.
The Eurostoxx 50 rose from 1622.40 points on August 16, 2006 to
3700.95 points on August 16, 2001.


Bonus of contention

The recent bonus cuts from Equitable Life came aslittle surprise to most of the industry which has been well aware of the company&#39s inflated payout policy which has left it with no reserves.Throughout Equitable&#39s demise, there have been cries from other with-profits life offices about its unsustainable bonus rates.But when companiesthe size of Norwich Union, […]

NDF Administration – NDF Income Plan

Wednesday, 15 August 2001.Type: Guaranteed Income Bond.Minimum-maximum investment: Lump sum £10,000-£1m.Term: Six years and two months.Return: 6 per cent income in first year, thereafter income is linked to the dividends paid by the FTSE 100.Guarantee: 100 per cent capital return.Commission: Initial 3 per cent.Tel: 01727 734315.

LIA says just 50 per cent of firms have sold group stakeholder

Only 50 per cent of LIA members claim to have sold group stakeholder while more than half have conducted individual stakeholder business, according to a new survey.The survey found that while 57 per cent of LIA members have sold stakeholder to individuals since its launch in April, just half have sold company or affinity group […]

WPA designs self-pay plan

Western Provident Association has designed self pay protect, a healthcare cash plan designed to help with the cost of hospital treatment for short-term illness or injury. The plan is concerned only with in-patient or day case private hospital treatment and follow-up out-patient treatment for 90 days after the patient has left hospital. It has three […]


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