View more on these topics

Safety nets for 40% downside

Structured product provider Nvesta is launching the latest two in its series of index tracker plans, offering downside protection if the FTSE 100 falls by up to 40 per cent.

Quad Tracker Plan 2 is a six-year plan which offers four times the growth in the index up to a maximum of 80 per cent. As long as the index does not fall by more than 40 per cent during the investment period, the original capital is guaranteed.

If the barrier is breached, the return is based on the average closing level of the index over the last five trading days preceding maturity and capital is reduced on a one for one basis.

The Super Tracker 35 Plan is also a six-year plan paying 100 per cent of any increase in the FTSE 100 with a minimum return of capital plus 35 per cent provided the safety barrier is not breached.

If any fall is less than 40 per cent, investors are guaranteed a 35 per cent return, any more of a decrease and the loss is calculated on the same basis as the first plan.

The initial index level for both plans is at close of the market on July 14. The closing date for investment is June 30 or June 23 for Isa and Pep transfers.

Minimum investment is £3,000 and maximum is £2m.

Finance director Simon Bottomley says: “With 40 per cent downside protection, investors can only begin to lose some of their capital if the FTSE 100 should fall from existing levels to around 2,400. The last time that this occurred was March 4, 1991 when the index was 2,382.9.”


Tiner vow over &#39back-door regulation&#39

FSA managing director John Tiner has acknowledged industry concerns about “back-door regulation” as a result of Financial Ombudsman Service decisions and pledged to provide some clarity on the relationship between the two bodies.Speaking at a breakfast meeting in London last week, Tiner said there is a need for the FSA to address this issue.FSA manager […]

Future in hands of Jobsworth and Tickbox

It is depressing to observe that, after establishing my IFA business for eight years, with a subsequent 12 years as an appointed representative of a big network, neither the public nor the Government retain any confidence in my business.Irrespective of the raft of legislation regulating the financial services sector, this sentiment must have been enhanced […]

Out of context

•”Does the planet Zog come to mind?” – Unnamed IFA to Financial Services Consumer Panel chairman Colin Brown at the LIA conference.•”We don&#39t hunt in packs.” – Aifa director general Paul Smee.•”I don&#39t know what&#39s going on, I&#39ve lost all of my mojo.” – Scottish Widows senior marketing consultant Mark Locke.•”I was fairly worried by […]

PI mutual gets FSA go-ahead

The FSA has given its official blessing to a new professional indemnity mutual insurer for IFAs, the first new entrant to come to market since the PI crisis escalated last year.It stems from underwriting agency PI Direct buying rival Magian and launching Magian Mutual which will only sell to IFAs.In its first year, it plans […]


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