View more on these topics

Skipton ropes in growth

Skipton Building Society has brought out another tranche of its five-year guaranteed growth bond that is linked to the FTSE 100, S&P 500 and Eurostoxx 50 indices.

The bond guarantees the return of the original capital, plus a minimum return of 22 per cent regardless of what happens to the indices. The maximum potential growth is 50 per cent and investments made before April 22, 2002 will receive interest of 4.25 per cent a year until May 7, 2002.

To calculate the final return, the level of each index will be recorded at the start of the term and again each year during the term. If all three indices have increased compared to the previous year, investors will get a return of 8 per cent. If this happens each year, this gives a return of 40 per cent, then a 10 per cent bonus is added to bring the final return up to 50 per cent.

If all three indices do not rise during the term, or they only increase once or twice, investors will only get the minimum of 22 per cent growth plus their original capital. They will get growth of 24 per cent if the indices rise three times during the term and 32 per cent where the indices rise four times.

The guaranteed minimum return above the original capital may make this product appealing to cautious investors looking for growth, who would rather diversify across global stockmarkets than rely on the performance of just one region. However, investors get the same minimum return if all indices rise twice during the term as they would get if none rise, which could be viewed as a drawback.


Commission position

This week, I am going to continue with the topical themes of commission rebates, cashbacks and discounts. In my last article, I began to look at the taxation of commission to which the IFA is entitled. Generally, this commission would be taxable as a trading receipt regardless of how it is dealt with subsequent to […]

VCTs crash on the rocks of recession

Last week&#39s news that Gartmore was to withdraw its VCT from the market came as little surprise to the industry&#39s pundits. In better market conditions it would no doubt at least have passed its minimum, but in a season where less than £50m has so far been raised across the entire industry Gartmore had little […]

Top tailors

Low-margin business, unsustainable, say IFAs, ran the headline in the February 7 issue of Money Marketing.The news story recounted how 75 per cent of the 280 independent advisers canvassed in the recent Money Marketing/Virgin One State of the IFA Nation poll did not see mass-market business as a viable option. Instead, they saw their future […]

Egg challenges fund managers on charges

Fund managers must be able to demonstrate they provide a superior service if their annual charges are higher than rivals, according to Egg.The online provider wants fund managers to be more open about annual charges such as total expense ratios and to be able to justify them if they are more costly than other companies.Egg […]

International jurisdictions

By Neil Jones, Canada Life Investing through international providers has grown in popularity over recent years as investors seek out the benefits of gross roll-up and the wider range of investment options that can be available. When considering a recommendation for a lump sum investment, not only does the adviser have to select a suitable tax wrapper […]


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 thought leadership.

    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