View more on these topics

Scottish Widows sets its sights on the FTSE 100

Scottish Widows has introduced the guaranteed investment bond.

The product is a guaranteed equity bond that is aimed at cautious investors who are looking for a product that offers growth and capital protection over the medium term.

The bond will be linked to the FTSE 100 index for its six-year term. At the end of every six-month period the performance of the index will be measured to see how far it has moved. The maximum amount it can rise or fall is 7.5 per cent.

At the end of the term all of the percentage rises will be added together and then the percentage falls will be deducted, to give a final level. If the final result is positive, the investor will get their original capital back plus the total amount of any rise. If the index falls, then investors will get their original investment back. Over a six-year period the FTSE 100 index went from 3,541.64 points on November 9, 1995 to 5,244.20 points on November 9, 2001.

The capital will be protected during the six-year term by being invested in zero coupon bonds.

The guaranteed investment bond is similar to the FTSE 100 growth protected investment bond from Merrill Lynch. This also follows the FTSE 100 index, with the original capital returned regardless of any falls. However, the Merrill Lynch product invests over a five-year period and also only promises 10 per cent of any growth in the index. The Scottish Widows bond has a longer term and does not set a ceiling for the maximum return.


Framlington blocks Isa for biotech in bid to warn of risk

Framlington is not offering an Isa option on its new biotech fund in a move aimed at preventing investors who do not understand the fund&#39s risk from buying it.The new fund, to be run by star manager Antony Milford, is the follow-up to the top-performing Framlington health fund, which was one of this year&#39s top […]

IFAs to continue to dominate unit trust sales

IFAs will continue to dominate the distribution of unit trusts over the next few years, though their share will decline slightly, according to research commissioned by fund supermarket systems provider FundsHub. The Datamonitor research shows the IFA share of distribution will remain relatively constant over the next few years, slipping slightly from 61 per cent […]

Get a helping handout

No one wants to contemplate having to move into a care home. Apart from the fact that it is not a step anyone takes unless ill health makes it necessary, it means moving out of your own home – of however many years standing.Worst of all, under the system we have here in the UK, […]

Regulation bucks stops with Kenmir

David Kenmir is the director with responsibility for over 7,500 authorised investment firms which operate in the UK financial service arena.The buck stops with him when it comes to the regulation of not just IFAs but fund managers, second-tier investment banks and stockbrokers.He is also answerable to managing director Carol Ser-geant for the FSA&#39s themed […]

Time for a new approach to asset allocation

Trevor Greetham, RLAM’s head of multi asset, introduces the recentlylaunched RL GMAPs. Asset allocation has become an increasingly difficult challenge for investors and advisers in the years since the financial crisis. Sometimes violent price swings in stock and commodity markets coupled with the collapse in the rate of interest on bonds have made it harder […]


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