View more on these topics

Widows and Rock take higher ground

Scottish Widows is offering combination products which consist of a guaranteed equity bond and a high interest account.

The Scottish Widows guaranteed investment combination is a six-year guaranteed investment bond linked to the FTSE 100 index and a high-interest account called the term deposit account which offers an interest rate of 7 per cent gross over 12 months.

Northern Rock already offers a similar product. Issue 12 of Northern Rock&#39s 50:50 product consists of a five-year guaranteed equity bond also linked to the FTSE 100, with a high-interest account which offers 7 per cent gross interest for two years.

Both products would suit cautious investors as both return capital in full at the end of the term, whatever happens to the FTSE 100 index.

Neither product allows investors to choose the investment split. The Northern Rock product splits capital equally between the two elements over five years while the Widows product invests 70 per cent of capital into the guaranteed equity bond element for one extra year. It may be more suitable to equity-minded investors with a longer-term view.

The calculation of returns on the guaranteed equity bond elements also differ. Widows measures the performance of the FTSE 100 every six months during the term, capping any rise or fall at 8 per cent.

The Northern Rock product compares the average level of the FTSE 100 during the final year with its closing level at the start of the term. Unlike the Widows product, it protects investors from stockmarket slides during the middle of the term but will not capture the highs during this period.


Bristol & West – Global Income & Growth Guaranteed Equity Bond 7 Year Growth Issue 2

Friday, 4 October 2002 Type: Guaranteed equity bond and high interest account GUARANTEED EQUITY BOND Aim: Income and growth linked to the FTSE 100, Nikkei 225, SMI and S&P 500 indices Minimum-maximum investment: £2,500-£1m Term: Until December 14, 2002 Guarantee: Capital returned in full at end of term regardless of movement in indices Return: Up […]

Merrill Lynch Investment Management – Growth & Income II (7 Year Term)

Monday, September 30 2002 Type: Capital protected bond Aim: Growth or income linked to the performance of FTSE 100 index Minimum investment: £7,000 Place of registration: Dublin Investment split: 100% linked to performance of FTSE 100 index Guarantee: Capital returned in full provided the index does not fall by more than 40% Yield: Up to […]

The relevance graveyard

Increasingly, individuals with occupational pensions are transferring to personal pensions to take advantage of the flexibility available with future funding and drawdown.There is quite often a need to take benefits from a pension plan, particularly tax-free cash, without wishing to retire. A personal pension is the only vehicle that will allow this flexibility.But tax-free cash […]

Big two finance unions to start merger talks

The UK&#39s two biggest financial services unions are in talks to merge, creating a single body with more than 200,000 members representing the bulk of unionised financial industry employees.MSF, the white-collar arm of Amicus, and Unifi start talks this autumn and hope to join together next spring. Both unions feel they would represent their members&#39 […]

The Downsizing Delusion: Why relying exclusively on your home to fund your retirement may end in tears

By Steve Webb, director of policy The British obsession with homeownership can have dangerous consequences. A recent survey by Barings¹ found that up to three million people of working age were planning to rely wholly on the value of their home to fund their retirement. We are not talking about people investing in buy-to-let or […]


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