View more on these topics

Number six from GE Life

GE Life has created the sixth issue of its high income and growth plan with the over-50&#39s in mind.

This Dublin-based closed-ended investment company is linked to the performance of the Eurostoxx 50 index, which consists of 50 European blue-chip companies outside the UK, such as Nokia and is available as an individual savings account (Isa) and a Pep transfer.

Investors can take income at 10.25 per cent a year or 0.8 per cent a month. Alternatively, they can go for a growth option that offers a return of 33 per cent after the term of three years and two months.

Investors&#39 capital is not guaranteed, but there is a risk of capital erosion if the Eurostoxx 50 index falls by more than 20 per cent or more by the end of the term. Where the index falls and then recovers to at least its starting level by the end of the term, investors will still get their original capital returned in full.

A fall between 21 and 30 per cent erodes capital at the rate of 1 per cent for each 1 per cent fall in the index. A fall of more than 30 per cent reduces capital by 2 per cent for each 1 per cent fall in the index for the income options and by 2.66 per cent for each 1 per cent fall if the growth option is chosen.

This product is likely to appeal to sophisticated investors as the way the final return is calculated is complicated, and there is a danger that some investors could be seduced by the headline interest rates without being fully aware of the risk of capital erosion. On a positive note, European stockmarkets are at a low point, giving investors the chance to take advantage of any subsequent highs that may be around the corner.

The Eurostoxx 50 index rose from 3326.35 points on June 17, 1998 to 3633.43 points on August 17, 2001.


Pinnacle takes the online route

Pinnacle Insurance is joining the online insurance bandwagon with the introduction of Helpupay.Helpupay is a mortgage payment protection insurance (MPPI) product and is aimed at all mortgage borrowers, as long as they are working for a minimum of 16 hours a week.Although the plan is available online, it can also be taken out by phone […]

Newcastle launches balanced equity bond

Newcastle Building Society is launching a second issue of its balanced equity bond.The bond is made up of two elements – a six month fixed rate bond which pays interest at 7.5 per cent and a global guaranteed equity bond which is linked to the performance of the FTSE 100, the Nikkei 225 and the […]

Henderson High Income Trust sees six month rise

Standard Life has secured new group AVC business from Consignia, formerly the Post Office, which it says could become its largest AVC account.Standard Life will be an additional AVC provider to the Consignia pension plan final salary scheme, which is offered to all of Consignia&#39s 220,000 employees. Standard Life marketing assistant general manager Simon Douglas […]

Norwich Union – Mortgage Life Insurance

Thursday, 23 August 2001.Type: Cafeteria-style protection policy covering critical illness cover,term assurance and mortgage payment protection.CRITICAL ILLNESSMinimum premium/cover: £5 a month/subject to negotiation.Maximum cover: No maximum.Illnesses covered: Alzheimer&#39s disease, aorta graft surgery, benignbrain tumour, blindness, cancer, coma, coronary angioplasty,coronary artery by-pass surgery, Creutzfeldt-Jacob disease,deafness, heart attack, heart valve replacement or repair, HIV –assault, HIV – […]

Benefits of using a probate bare trust

Have you ever wondered what happens to someone’s investment bond on their death if it is not written in trust? When someone dies it is essential to deal with their estate, which can be made up of their home, belongings, investment bonds and anything else they may have owned. But, it is not as simple […]


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