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Standard Bank Offshore stages lock in

Standard Bank offshore has created a guaranteed equity bond that
locks in 25 per cent growth if the FTSE 100 index rises by 25 per cent
at any point during the five-year term.

Equity growth deposit is available to investors with at least the
£10,000 minimum and it returns investors&#39 original capital regardless
of how the index performs. In addition to the possibility of locked-in
growth, investors get 75 per cent of the remaining growth. For
example, if the FTSE 100 index rises by 45 per cent, investors get 25
per cent growth then 75 per cent of the remaining 25 per cent &#45 18.75
per cent. This would produce a total return of the original capital plus
43.75 per cent growth.

To calculate the returns, the closing level of the index is taken on
February 25, 2004 and this is compared with the quarterly average
over the last 12 months of the term.

The lock-in feature on this product may be of interest to some
investors as once it applies, it cannot be taken away even if the index
subsequently nosedives. However, the fact that investors get only 75
per cent of the remaining growth, is not such a good aspect, since
the remaining 25 per cent growth is not passed on to investors. This
is the price they pay for the lock-in feature.

Manor Park has an offshore capital-protected product that is also
linked to the FTSE 100 index for five years, but it is structured as an
investment trust. The Manor Park fund enables investors to choose
the level of capital protection they want, so the higher the capital
protection the lower the return.

Protecting 100 per cent of capital with Manor Park will provide 110
growth in the index. For example, if the index rises by 45 per cent,
investors will get their capital back plus 49.5 per cent growth &#45 higher
than the returns under Standard Bank Offshore.


F&C waives initial ISA charge

F&C is waiving the £50 + VAT initial charge on its investment trust ISA. The offer runs from 1st January until 31st May 2004, meaning investors can invest up to £14,000, making the most of the current tax breaks available. Investors can choose to invest in up to any four of the ten F&C investment […]

Isis Asset Management – Multi-Manager Distribution Fund

Type: Oeic fund of funds Aim: Income and growth by investing in Oeics, unit trusts, investment trusts and property funds Minimum investment: Lump sum £1,000, monthly £50 Investment split: 30% equity funds, 50% fixed interest funds, 20% property funds Isa link: Yes Pep transfers: Yes: Charges: Initial 5%, annual 1.25% Commission: Initial 3%, renewal 0.5% […]

AMI guides firms through cold-calling regulations

The Association of Mortgage Intermediaries has produced a factsheet on cold-calling for its members, clarifying the FSA&#39s position as regulation on cold calls is scheduled for this year. Cold-calling will be banned once statutory regulation starts in October but the AMI&#39s guide concentrates on what intermediaries will be allowed to do with regard to cold-calling. […]

Halifax revamp &#39too complex&#39

Halifax&#39s newly relaunched core variable mortgage range has met with little enthusiasm from mortgage brokers who say it is over-complicated. The new range includes products for first-time buyers, homemovers and people looking to remortgage. Halifax says the revamp is all about choice, so movers can choose a low headline tracker rate with fees, a higher […]

Cricket - thumbnail

England vs Australia: pensions

Well, the cricket season is here, and England and Australia are stepping up to the wicket. Although we compete with each other in the sporting world, when it comes to pensions, Australia’s pension programme is held up as a model for our auto-enrolment initiative. Auto-enrolment was introduced because people weren’t saving enough into their pensions, and it is still early days but signs are positive. However, in Australia, saving into a pension is compulsory, and in fact employers are the ones who have to pay in. Employees in Australia can make additional contributions into their pensions, but they don’t have to. Should the onus be on the employer or employee to save? Well in the UK we think it’s both, but to get ‘adequate’ savings for retirement it’s the employee who has to pay more in.


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