View more on these topics

Premier rolls on

Premier Asset Management has brought out the Premier growth plan limited editions no 23. This is a FTSE 100 linked capital-protected bond which has the potential to mature each year during its six-year term.

Investors get a full capital return unless the FTSE 100 index falls by more than 50 per cent and does not recover to at least its initial value. It will mature early each year if the index has stayed the same as its initial value or has risen at that particular anniversary.

If the early maturity criteria is met in year one, investors will get a total return of 107 per cent, which consists of a full capital return and 7 per cent growth. In year two the return is 114 per cent, in year three 121 per cent, in year four 128 per cent, in year five 135 per cent and in year six 142 per cent.

If the index is never the same or greater than the initial value but does not breach the 50 per cent barrier investors will get only their original capital. However they will lose 1 per cent of their capital for every 1 per cent fall in the index if the 50 per cent barrier is breached.

This products use of an early maturity trigger every year reduces its chances of running full term, which also limits the likelihood of achieving the maximum growth on offer. However, early maturity could be useful for some investors who would like the opportunity for an early payout.

The main problem is a lack of certainty over when the term will end, so it would not be suitable for investors who need access to their money on a defined date. Also, the potential one for one reduction could result in capital erosion and some investors may feel the returns do not compensate for this risk.


Eastern earnings

The East represents the best potential for economic growth, according to Chris Lees Head of the global equity group, Baring Asset Management.

‘Hybrid schemes boost take-up’

Hybrid pension schemes are the key to providing better occupational pensions that encourage employees to sign up, according to the CBI.

Three-week warning for pensions

Six months before retirement age, I received a comprehensive circular in FSA format from several insurance companies. These listed the options, gave no figures but told me how to obtain them. Four months before retirement age, I received a letter from the DWP Pension Service giving figures for my state pension. These bore no relationship […]


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