View more on these topics

Scottish Friendly repeats bond offering

Scottish Friendly Assurance has introduced another issue of its growth and security bond, which invests in the Scottish Friendly with-profits fund.

The with-profits fund invests 48 per cent in UK stocks and shares, with the remainder going into property, fixed-interest securities such as government bonds, and cash. Investors who access this fund through the bond receive an annual bonus, currently 5.25 per cent. This is 0.75 per cent lower than the previous tranche established in January 2001 because share prices have suffered within the space of a year.

A loyalty bonus of 2.5 per cent will be added on the 10th anniversary of the investment and, as with other with-profits bonds, a final bonus may be also be added.

The bond is designed to be held for at least five years, but this does not prevent investors from having access to their capital within that period. They can withdraw up to 7.5 per cent a year as a form of income on a monthly, quarterly, half-yearly or yearly basis. If they cash in the bond early there is no redemption penalty, but a market value reduction may be applied which could reduce the encashment value.

People who are preparing for retirement may find the growth and security bond attractive as an alternative to building society accounts, which have been affected by falling interest rates.

The January 2002 with-profits survey from IFA Baronworth Investment Services shows that Scottish Friendly offers a higher annual bonus than providers such as Prudential and Scottish Equitable. It is possible to get a higher annual bonus of 6 per cent through the Winterthur Life with-profits bond, but investors who cash in the bond during the first four years pay a redemption penalty of between 8 and 1 per cent.

Recommended

Profit alert from Inter-Alliance

National IFA Inter-Alliance has issued a profit warning to the City, blaming market conditions and litigation.The Aim-listed IFA says it does not expect to be back in the black until 2003.It believes the FSA&#39s depolarisation plans are a “major opportunity for the company”, fuelling speculation of a takeover by a major provider.Money Marketing revealed in […]

Keydata offers second helping

Keydata Investment Services has followed up its secure growth portfolio with a second issue of the product. This guaranteed growth bond is linked to a portfolio of six externally managed Oeics over a five-year term. These are Norwich Union UK growth, Norwich Union European equity, JP Morgan Fleming premier equity growth, Newton income, Threadneedle European […]

Fears that small mortgage firms will be casualties

While some of the mortgage industry see no cause for alarm in the FSA&#39s sweeping proposals to scrap polarisation, others are warning it will drive small brokers from the market.The mortgage sector is in many ways in a state of limbo waiting for meat to be put on the bones of the Treasury&#39s surprise announcement […]

Standard & Poor&#39s Top 10s

Merrill Lynch Investment Manager&#39s gold & general fund is back ontop of the unit trust table with a return of 46.68 per cent for thepast 12 months. But despite rising returns at the top of the table,the average unit trust return has fallen to -17.53 per cent fromaround 14 per cent at the start of […]

US election

Capital Market Notes, November 2016 David Lafferty, chief market strategist at Natixis Global Asset Management, looks at the impact on markets and portfolios since the somewhat surprising outcome of the US election. Click here

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