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Scottish Life International creates second bonus bond

Scottish Life International has established the second issue of its protected bonus bond.

The bond is linked to three stockmarket indices &#45 the FTSE 100, S&P 500 and Eurostoxx 50. Investors&#39 original capital is returned, along with minimum growth of 18 per cent, whatever happens to those indices during the term of six years and two months.

The maximum growth potential is 54 per cent, which is made up of six annual payments of 9 per cent. To calculate the returns, the closing levels of the stockmarket indices are measured in the 10 days leading up to May 5, 2003 and the lowest level is recorded for each index. These are compared to the levels of each index on an annual basis and a 9 per cent bonus will be paid provided each index remains at, or above, its starting level each year.

This product could appeal to offshore investors who may be put off with-profits in the light of another round of bonus cuts and who are willing to tie their money up for a longer term than similar products from Britannia International and Irish life International.

However, linking the product to three stockmarkets is a riskier strategy than linking to one index such as the FTSE 100 index. A fall in any of the indices within each year during the term would affect the 9 per cent bonus and it may be difficult to achieve the maximum level of growth that is offered. This is the price investors pay for the security of a guarantee which extends beyond the return of the original capital.


Towry Law offering hybrid loan with fix and discount

Towry Law Mortgage Services is offering an exclusive hybrid mortgage combining an initial fixed rate followed by a discount.The product has a one-year fix at 3.59 per cent followed by a 1 per cent discount off the standard variable rate – giving a current rate of 4.75 per cent – for the following year.The IFA […]

Bank of Ireland merges Chase de Vere and MX

Bank of Ireland is merging its UK IFA firms – Chase de Vere Investments and MX Financial Solutions – and axing up to 350 staff, blaming the difficult investment climate.From June, the two firms will be marketed under the Chase de Vere Investments brand but BoI will not say how many of its 280 RIs […]

Out of context

•”London, as you know, is a town in Canada.” – AMP spokesman Stephen Hoffman brings an international perspective.•”We do have a computer in the office but it is steam-driven. As far as we are concerned, it is cutting-edge stuff.” – Pensions & Investment Management principal Phil Moore.•”Out Of Context is the zenith of my career […]

Tax break loss will deter Isa investors

Almost half of investors who are aware of the imminent scrapping of the tax break on equity Isa dividends say they are less likely to invest in them as a result. Research by Isis has found that 45 per cent of investors who know the 10 per cent break will be abolished in April 2004 […]

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


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