View more on these topics

Scottish Life International goes for guarantee

Scottish Life International has introduced an offshore guaranteed equity bond that returns a minimum level of growth plus the original capital whatever happens to the stockmarkets to which it is linked.

The bond is only available to investors in Scottish life International&#39s secure investment portfolio and protected investment management service. There are sterling denominated and US dollar versions of the bond, which offer slightly different returns over a term of five years and two months.

The sterling denominated version provides minimum growth of 10.2 per cent and maximum growth of 51 per cent. The US dollar denominated version has a minimum growth return of 10 per cent and maximum growth potential of 50 per cent. Returns depend on the performance of three stockmarket indices, the FTSE 100, Eurostoxx 50 and S&P 500, which represent the UK, Europe and the US.

With the sterling version, a 10.2 per cent bonus is added each year providing the three indices do not fall below the starting levels during the last 10 working days of each year. The US version adds 10 per cent a year on the same basis. The starting levels are the level of each index on July 29 each year. Investors are guaranteed the minimum return even if the indices fall below their starting levels during the last 10 working days of every year.

The bond may suit cautious long-term investors who are looking for an alternative to with-profits bonds in the light of recent cuts to bonus rates. However, it may be difficult to achieve the maximum potential return, as each index must close higher than the starting level for a narrow 10-day period every year.


Mind the gap

Big numbers are always striking and there are few things more striking than the claim that a £27bn gap exists between what people need to be putting aside for retirement and what is actually being saved in the UK.This claim by the ABI has become a familiar feature of the landscape. It is important, therefore, […]

The power and the story

Politicians and regulators dominate retail financial services, according to the UK&#39s first-ever Top 100 Power and Influence list.The list, compiled by Money Marketing&#39s panel of experts, reveals Chancellor Gordon Brown is the most powerful individual. FSA chief executive and chairman Howard Davies, Treas-ury long-term savings review head Ron Sandler and Dep-artment for Work and Pens-ions […]

Product Matters

Threadneedle is clearly hoping to attract a broader investment audience for its property unit trust by relocating the former Sackville Property Unit Trust offshore to Jersey.It is hoping the fund will appeal to IFAs, as witnessed by the minimum investment subscription of £25,000 for IFA clients, with £250,000 required from direct investors.Threadneedle&#39s property fund has […]

Scottish Widows goes for strategy

Considering the investment strategy, Moseley says: “Very limited investment options. The investment strategy seems okay.” Stather points out that investment grade bonds are now highly priced. He feels that prices might not fall, but such bonds unlikely to provide capital growth. He adds that there will be more opportunity for capital growth with high yield […]

Stop the cold-calling

Royal London is pleased to support the petition calling for a ban on cold-calling for pension and investment products. The petition, launched by IFA Darren Cooke of Red Circle Financial Planning and hosted on the Parliamentary website, calls on the Government to ban cold-calling for pensions and investment products. A similar ban is already in force […]


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