View more on these topics

Wesleyan bond doubles up

Wesleyan&#39s capital & income bond issue is a combination of a
guaranteed equity bond with a high-interest account which gives
investors a choice of a five or seven year term. Up to 50 per cent can
go into the high-interest account, while the remainder goes into the
guaranteed equity bnnd.

The guaranteed equity bond element, which is used to provide
growth, is linked o four stockmarket indices &#45 the FTSE 100, Nikkei
225, Swiss Market Index and the S&P 500. Investors will receive 70
per cent of any growth in these indices plus the original capital
regardless of stockmarket performance.

To calculate the returns, the closing value of each index is recorded
at the start of the term for the five-year bond and an average is
produced, which will be compared with an average taken during the
last 12 months of the term. The seven-year version differs slightly in
that averaging takes place during the first 12 months and the last 12
months of the term. Investors can make withdrawals if they need to,
but this will incur a charge and investors will also forfeit the full capital

The high-interest account element provides a monthly income and
the amount differs according to the length of term that is chosen. A
five-year term will produce 5.25 per cent gross a month while a
seven-year term will provide 5.5 per cent gross a month. No
withdrawals can be made from this element during the term.

Bristol & West manages this product and the company is also
promoting a similar product. The guaranteed equity bond element of
the Bristol & West product is identical to the Wesleyan product, but it
has an additional feature where 60 per cent growth can be locked in,
which some investors may regard as an extra safeguard. The
high-interest account element of this product is fixed at 8 per cent for
one year, and some investors may prefer this to a seven-year term
during which they cannot access their money.


Watchdog&#39s view is critical

The Financial Services Ombudsman is reckoned to be looking warily at the trend towards reviewable premiums on critical-illness policies, with some product providers saying that the watchdog has indicated that such contracts may fall foul of unfair contract principles. It has indicated its concerns that policyholders may not understand the premiums they are being quoted […]

Fundsdirect secures further IT link-ups

Fundsdirect has struck deals with Synaptic and systems provider 1st Software to give direct access to the platform to more than 20,000 IFAs. Fundsdirect says the integration of its platform with 1st Software&#39s adviser office product – a client management system – will enable IFAs to link from their back office to its wrap service, […]

Painless extraction

Anybody who runs their own business should be aware that they are making an investment. Whenever a business owner makes a choice with regard to the use of funds in the business, an investment choice is being made. Much like any other investment, a business is a means of delivering an income – usually taken […]

Ian Muirhead: Legal aid

Identifying referrersA number of factors need to be considered when financial advisers seek to establish a relationship with a law firm. Association should be sought with law firms whose business gives rise to the need for financial advice. In England and Wales, the Law Society&#39s directory and website at show the types of business […]


DB transfer shouldn’t be all-or-nothing

By Steve Webb, director of policy In my recent discussions with advisers, a hot topic has been the growing number of people interested in transferring their defined benefit pension rights into a defined contribution pension scheme. With many pension schemes offering eye-watering transfer values, this is likely to be an area of increasing interest. Yet […]


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