View more on these topics

Scottish Mutual makes investing Ea5y

Scottish Mutual has established the Ea5y income bond, a guaranteed equity bond that offers a choice of two income options or a growth option.

The name of the product is a play on the word easy using the number five because it has a five-year term. It offers investors a choice of annual income at 6.25 per cent gross, monthly income at 0.5125 per cent gross or growth at 31.875 per cent gross.

The bond is linked to the performance of the fifty largest European stocks that are listed on the Eurostoxx 50. Scottish Mutual says this is currently the most popular index for structured products. Returns are based on a comparison of its value between December 17 2002 and the average daily closing level between December 3 and December 14, 2007.

Investors get their income or growth plus their original capital back unless the index falls by more than 25 per cent during the term without recovering to at least its value on December 17, 2002. If the index has risen by 40 per cent or more by the end of the term, a bonus of 12.5 per cent gross is added.

However, if the index falls by more than 25 per cent without recovering to at least its starting value, investors’ capital will be reduced by 1 per cent for every 1 per cent fall in the index.

This product could have particular appeal to investors who need income, but the conditional capital guarantee makes it less suitable for investors for whom capital preservation is a priority.

The Eurostoxx 50 index has fallen by almost 18 per cent in the last five years, from 2603.32 points on October 9, 1997 to 2150.27 points on October 9, 2002.


Scottish Widows appoints investment director

Scottish Widows Investment Partnership has appointed Matthew Harris as investment director to its Japanese equity team.Harris, 28, has more than seven years experience managing Japanese funds at Aegon Asset Management.He will work on Japanese institutional funds with responsibility for research in both retail and institutional funds.

Inside edge

One of the most incisive parts of Ron Sandler&#39s report was his assertion that the current conduct of business rules excludes large numbers of the public from meaningful financial advice.The current regime has allowed regulators to rule with the benefit of hindsight, forcing advisers to ringfence their advice with an expensive palisade of know your […]

Simple guide to the health of the investment

We would like to correct any impression that Azarat&#39s new service (Osiris) (MM, September 26) focuses solely on return of capital or indeed that a “red status” necessarily implies a bond will fail to return capital.The green, amber and red indicators are supplementary to the full Osiris reports and are meant as a simple guide […]

Berkeley tops network survey

Berkeley Independent Advisers has topped a survey of satisfaction among IFA network members for the seventh year.The annual survey, carried out by Henry Samuels Marketing Services, rated the level of satisfaction on 11 criteria through telephone interviews with 425 network members from the 13 main networks.During the interviews, carried out in June and July, members […]

Converting pension savings to a retirement income…

Since last year’s reforms to pension legislation, a significant number of retirees have chosen income drawdown over purchasing an annuity. Income drawdown is more flexible than an annuity. However, it also increases the likelihood that individuals won’t be able to maintain their income throughout their lifetime. In this short video, we explain the risks that […]


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