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Norwich Union prospers for second time

Norwich Union has brought out the second issue of the prosper guaranteed capital bond that is linked to the FTSE 100 index for four-years.

Investments made up to August 18, 2002 will receive a bonus of 0.35 per cent and those who invest between August 19, 2002 and September 6, 2002 will get a lower bonus of 0.15 per cent.

Investors get their capital back in full, however the FTSE 100 index performs during the term. To calculate the final return, the FTSE 100 index is recorded every six months and any rise or fall will be capped at 6.5 per cent, then added together at the end of the term. This means the maximum growth potential is 52 per cent.

This bond could suit cautious investors looking for a step up from building society accounts. It is different from the current crop of guaranteed equity bonds in that it has a four-year term, instead of the usual three or five years.

However, the method of calculating the return means the maximum growth potential is low in comparison with some bonds such as National Savings and Investments&#39 guaranteed equity bond, which offers 70 per cent growth in the FTSE 100 index.

Also, every half-yearly movement in the index has an effect on the final return of the prosper bond. This could reduce the probability of investors benefiting from the maximum growth potential, as the index would have to rise by at least 6.5 per cent every six months.


Friends purchase of R&SA investment arm cleared by DTI

The Department of Trade and Industry has cleared the takeover of Royal & Sun Alliance&#39s fund management arm by Friends Ivory & Sime.The referral was a routine matter and the decision by the DTI to clear the deal will come as no surprise.

Must try harder

At this time of year, many parents will be anxiously awaiting end-of-term reports for their offspring. Given the time and effort put into rearing the Sandler and Pickering reviews, I can only assume that the Government is similarly nervous.Master Pickering has proved to be a serious underachiever as his work to date has been both […]

Enterprise Investment Schemes – Spivs

Tuesday, 23 July 2002 Aim: Growth by investing in a film called Spivs Minimum investment: Lump sum £2,000 Opening/closing dates: June 5, 2002/August 31, 2002 Charges: Implicit Commission: Initial 3% Tel: 020 8758 8430

The review from here

If nothing else, last week&#39s reports from Messrs Sandler and Pickering seem to contain something for everyone to dislike.The FSA will probably not like being told that it has to start providing far more guidance on what it is expecting from the rules. IFAs will have some, perhaps understandable, concerns about the products designed to […]


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