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RBSI bond promotes currency choice

Royal Bank of Scotland International has established a guaranteed equity bond that is available in sterling, dollar or euro currency denominations.

The bonus builder account is linked to the FTSE 100, S&P 500 and Dow Jones Eurostoxx 50 indices during a three-year term. The returns investors get will depend on the performance of these indices and the currency investors choose.

Investors who choose sterling are guaranteed their original capital back, plus a minimum return of 9 per cent on top of this. The three indices are monitored every six months during the term and where all three rise or stay at the same level, a 3 per cent return is locked in. If this happens at every six-month interval, a 7 per cent bonus is added, bringing the maximum return up to 25 per cent.

Euro and dollar investors are guaranteed their original capital plus a minimum return of 6 per cent at the end of the term. The three indices are monitored on the same basis as sterling investments, but a 2 per cent return is locked in. If this happens at every six month interval, an 8 per cent bonus is added, bringing the maximum return up to 20 per cent.

This product has a shorter term and greater currency choice than offshore products such as Irish life International&#39s secure growth bond 9, which offers a choice between sterling and euros.

However, the Irish Life International product also offers a choice of capital protection, but the Royal Bank of Scotland product does not provide this type of choice.


NU rethinks with-profits bond strategy

Norwich Union says it is looking to diversify away from with-profits bonds in the medium term because of poor sales of the product across the industry.Anecdotal evidence is mounting of a shift away from with-profits bonds following publicity surrounding market value adjusters and bonus cuts.NU is unwilling to disclose information about sales, saying they are […]

DC schemes could be next target for unions, says leader

Union strike action over defined-benefit schemes could spill over to companies running defined-contribution schemes, warns giant civil service union Unison.Head of pensions Glyn Jenkins told delegates that poor returns on defined-contribution schemes will lead to increased wage claims.In a warning to employers not to underestimate the pitfalls of cheaper money-purchase schemes, Jenkins argued that poor […]

Keydata now on WIG website

The Fund Selector, a fund information service from Keydata, is now available on the Women&#39s IFA Group website.Members of WIG, numbering almost 600, can now access fund factsheets and comparative performance data and can prepare client specific illustrations online.The Keydata Fund Selector provides online content from the CD-Rom prepared on a monthly basis which is […]

Guns and roses for VCT

Close Venture Management is issuing a C-share class on behalf of the Close Brothers Development venture capital trust in a bid to raise £20m of new funding.The VCT, which was set up in January 1999 and has raised £14.8m to date, invests in smaller unquoted companies such as military vehicle manufacturer Automotive Technik and garden […]

Sub-Saharan Africa Near-Term Outlook

By Paul Caruana-Galizia, Neptune Economist

Sub-Saharan Africa’s economic renaissance continues. After growing at an average rate of five per cent over the past decade, the IMF projects an acceleration to 5.5 per cent growth among Sub-Saharan economies in the next two years, as developed economies emerge from the crisis. We expect this growth to be sustainable for three broad reasons.


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