View more on these topics

Protect and survive

Friends Provident’s new protected investment portfolio bond allows investors to invest in a range of 14 of its funds. On death, it pays out a guaranteed minimum of 101 per cent of the bond value or the original investment, depending on which is higher.

This bond is an ideal investment for cautious investors, particularly where either husband or wife does not agree with the other on investing in equities because they do not want to risk losing the capital on the death of the other. This situation is quite often the case and it means that families often miss out on equity growth because of ultra caution.

I particularly like the link to the stewardship managed fund, which has given an above-average return over the last three years of around 38 per cent to October 1, 2006. This fund should do well in view of all political parties encouraging environmentally-concerned companies.

The fund has an excellent fund manager in Paul Niven. He invests around 53 per cent in UK equities, 28 per cent in oversees equities, 12 per cent in UK fixed interest and around 6 per cent in cash deposits.

The fund is widely spread, with the biggest holdings being Cairn Energy, Vodafone, Tesco, BG Group, Capita Group, Scottish & Southern, Workspace Group, Inchcape, Informa and the National Grid. The only constraints are that there is a minimum investment of 5,000 and the maximum age at which money can be invested in the bond is 74.

For more cautious investors, there is also a property fund, a fixed-interest fund and an index-linked fund.

The protected investment portfolio bond fills a gap for all cautious investors who want to protect their capital for their heirs.

Recommended

FSA warns of ‘worrying cracks’ around mortgage advice

The FSA has issued a warning to mortgage advisers of the ‘worrying cracks’ appearing around quality of advice, affordability and interest-only mortgages.Speaking today at the Mortgage Business Expo in London, FSA retail markets managing director Clive Briault said the pressure on the processes for giving mortgage advice is increasing- due to a changing economic climate- […]

The principle prize

The ABI is looking forward to the challenge of the FSA’s change of course

Wishing well

Have you eaten five portions of fruit and veg today? Have you drunk two litres of water? What about 30 minutes of exercise? Are you eating low GI or cutting out carbs? Have you switched to brown bread and reduced your salt intake? Would you refuse to eat anything except organic food?

Role reversal

There seems to be a mismatch between some advice propositions and investment propositions

Leading Edge – April 2017

There is little doubt 2017 will be a year of political uncertainty. Leading Edge is Royal London Asset Management’s regular review of investment markets. This edition explores some of the impacts that this uncertainty is having on investors, from the pitfalls of prediction within UK equity investing to the dangers of opting for convenience over […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com