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Scottish Life International re-runs bond series

Scottish Life International has introduced the fifth series of its stockmarket linked income and growth bonus bond.

This offshore bond has a three year term and gives investors the choice between two income options and a growth option. They can select an annual income of 11.2 per cent gross, a quarterly income of 2.7 per cent gross or a return of 135.6 per cent gross after three years under the growth option.

The bond is linked to three stockmarket indices the FTSE 100, the S&P 500 and the EuroStoxx 50. Investors&#39 capital will be returned in full unless one or more of the indices falls by more than 30 per cent and does not recover by the end of the term. Where there is no recovery at the end of the term, investor&#39s capital is reduced by one per cent for each one per cent fall in the index.

The present period of stockmarket volatility could make this type of capital protected investment attractive to cautious investors who are looking for offshore tax incentives. The use of three indices is good in that investors are not relying on a single index. But the flip side is that poor performance in one index might drag the capital return down if the other two indices do not fall below 30 per cent.

The EuroStoxx 50 index rose from 3331.70 points on April 9, 1998 to 4024.15 points on April 9, 2001.


Fractional pricing war for direct stakeholder

Direct stakeholder sales are being driven by fractional pricing differences as employers shun performance in favour of cost. Direct-offer website says 82 per cent of schemes designated since its launch last year are stakeholder and half of these are Norwich Union&#39s plan which has an annual charge of 0.8 per cent. This is marginally […]

European Central Bank resists rate cut

The European Central Bank today resisted mounting pressure for a cut in its interest rate, leaving it unchanged at 4.75 per cent.The decision surprised many analysts, and shows that the ECB sees inflation as its primary concern.ECB president Wim Duisenberg says: “Euro-area interest rates, both short-term and long, are not high by historical standards.” The […]

AA promises after-sales servicing to customers

AA Financial Services claims its new telephone-based IFA service will tackle the poor levels of customer service it says are inherent in the industry. The AA says its research shows many financial services customers are dissatisfied with the “very poor” post-sale experience they have received from IFAs and direct-sales teams. It claims its IFA service, […]

Polarised views

When are IFAs going to learn? Having read the pinks lately you would have thought that IFAs had deep concern over the FSA proposals for polarisation. So I was surprised to read in the FSA policy statement: “The overall response to Consultation Paper 80 was one of broad support for the proposed changes to polarisation […]

Happy while you work

Well we’ve had scorching weather (yes even up here in Scotland!) and now the Euros 2016 are on – you can’t blame people for wishing life was just one big holiday.  With all these distractions it sometimes feels like work just gets in the way of having a good time! But sunny day skivers are […]


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