View more on these topics

Skipton Guernsey grows up

Skipton Guernsey has introduced a five-year guaranteed growth bond aimed at offshore investors.

The bond is linked to the FTSE 100 index for five years and returns the original investment plus at least 26 per cent growth, even if the FTSE 100 index falls during the term. The maximum growth investors get is 50 per cent.

It is identical to Skipton&#39s onshore five-year guaranteed growth bond except for one feature. Investments made before September 14, 2001 will accrue interest at 5.30 per cent gross a year before it is invested in the bond on October 2, 2001. This is a higher interest rate than offered under the onshore version, but the final return is calculated the same way for both bonds.

The starting level of the FTSE 100 index is taken on October 2 each year during the term. Investors get an 8 per cent return for each year the index grows. To get the maximum return the index must rise every year and if this happens a 10 per cent bonus is added to bring the growth up to 50 per cent.

Where the index increases between one and three times during the term investors will only get 26 per cent growth plus their original capital. They will get growth of 32 per cent if the index rises four times.

This bond may suit investors who are retiring abroad and those who invest offshore because of the tax advantages. Some investors may be satisfied with a capped level of growth if it means they will come away with their original investment intact and a minimum level of growth. However, others might prefer higher growth potential without a capital guarantee.

Recommended

AITC calls for improved personal finance education

The AITC is calling on the Government to build more personal finance education into the national curriculum.In its response to the Treasury’s Savings & Assets for all paper, the trade body said it endorsed the Government’s idea for Child Trust Funds, and recommended they were used create an informed savings culture in the UK.The AITC […]

Fund managers set to fight for &#39baby bond&#39 default fund

Fund managers could find themselves competing with each other to win the mandate to manage the default option for the Government&#39s child trust funds.The Treasury, which first mooted the idea of child funds in the recent Savings & Assets for All paper, is looking to create a default investment option for parents who do not […]

CML anger at &#39absurd&#39 monitoring proposals

The Council of Mortgage Lenders has slammed the FSA for proposing “absurd” regulations forcing lenders to monitor the product information shown to borrowers.The CML, which recently sought clarification from the regulator over the matter, is angry that the FSA is pushing ahead with rules which it claims are impossible for lenders to enforce.The proposals, due […]

Skandia extending its multi-fund links

Skandia is expanding its multi-manager fund range with the addition of onenew fund manager and a total of 12 new funds. It will link to Sarasin and introduce eight new funds to its MultiIsa,MultiPep and MultiFund range and life and pensions products. A further fournew funds will be made available to its life and pension […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com