View more on these topics

Scottish Widows ignores bond bubble

Scottish Widows has created three unit-linked corporate bond funds for its Investment Solutions range of funds for its life and pension products.

The funds are available through Scottish Widows&#39 flexible options bond, regular savings plan, personal pension, group personal pension, and executive pension plan and income drawdown products. The corporate bond assurance/pension fund and strategic income bond assurance/pension funds are also available through stakeholder, but the high-income bond assurance pension fund is not.

The funds each invest in an underlying Scottish Widows fund. The underlying asset allocation for the high-income bond assurance/pension is 65% high yield bonds and 35% Government bonds. The bonds are selected on a bottom-up approach and are screened in terms of yield, cash flow and other factors that may enhance a company&#39s future prospects.

The strategic income bond assurance/pension fund invests mainly in investment-grade UK and European corporate bonds selected on a top-down basis. Finally, the corporate bond assurance/pension fund works in a similar way but is biased towards the UK.

Low yields and high prices have led to concerns that the bond market is starting to look unattractive compared with equities, despite the strong performance of high-yield bonds. However, it is still early days and bond funds may still be popular with investors until equity markets fully recover.

According to Standard & Poor&#39s the Scottish Widows corporate bond fund is ranked 10 out of 64 funds and the Scottish Widows high income bond fund is ranked eighth out of 27 funds over three years based on £1,000 invested on a bid-to-bid basis with net income reinvested over three years to August 11, 2003. There is no three-year past performance for the Scottish Widows strategic income fund but it ranks 20 out of 48 funds over one year on the same criteria.


IFAs merge in move to boost RIs

Norwich IFA Crossley Mackenzie is merging with City of London-based Helm Godfrey Partners to form a 28 RI group.The merger is part of Helm Godfrey&#39s plans to boost its RI count to 50 by the end of 2004. It also plans to increase group turnover from around £3.5m to £7m over the same period.IFA Helm […]

Head of FSA consumer panel to join OFT

FSA consumer panel chairman Colin Brown is quitting his role after just two-and-a-half years to take up a post with the Office of Fair Trading.Brown will depart six months earlier than expected on November 1. He will be replaced by Ann Foster, who has been vice-chairman of the panel since January 1, 2001.Brown is best […]

Online service for human resources

IFA network Group 300 is offering an internet-based tool to help advisers with their human resources&#39 responsibilities.The Evolution 300 package allows IFAs to manage their HR requirements by enabling them to maintain employee records and audit trails online. It can be used to create terms and conditions contracts, letters, health and safety documents and staff […]

What's going on in the 'offshore' world?

Graeme Robb, Senior Technical Manager at Prudential, explores the current state of the nation for offshore issues and highlights areas which may be particularly relevant to advisers. In the context of insurance companies, ‘offshore’ can be a relatively straightforward matter. Like their onshore equivalent, offshore bonds are ‘non-qualifying’ for tax purposes, meaning that all gains […]


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