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Zurich bond offers double scoop

Zurich Financial Services is offering investors the chance to invest in a capital-protected bond that is linked to the FTSE 100 and Halifax House Price indices for five years and six months.

The select guaranteed account is available to those with between £2,500 and £250,000. Investors decide whether they want their investment linked to the FTSE 100, Halifax House Prices index or a combination of the two. If they choose a combination of indices they decide how much to invest in each element. In addition to a full capital return, investors will receive 100 per cent of the growth in their chosen index or indices.

When calculating the returns, the closing level of the FTSE100 is recorded on July 30, 2004 and the non-seasonally adjusted Halifax House Prices index for July 2004 will be used as a starting point. In both cases, these figures will be compared with an average produced over the final year of the term.

This product is currently the only product of this type, although Skipton Building Society provides exposure to the Halifax House Prices index through its guaranteed triple asset bond. However, the Skipton product is not directly comparable with the Zurich product as it has an income element via a high-interest account that pays 8 per cent gross a year. The remainder is linked to the FTSE 100 and Halifax House Prices Index and offers 75 per cent growth in these indices.

Investors would need to decide whether it is worth getting a lower element of growth over a slightly shorter term with Skipton plus the fixed rate of income or whether no income and a higher level of growth over a slightly longer term with Zurich will best suit their needs.


Lending down by £1bn in May

Mortgage lending was £1bn lower in May than in April, according to the Council of Mortgage Lenders. Gross lending amounted to £23.8bn in May, down from £24.8bn in April but still nearly 9 per cent higher than in May last year. The number of house purchase loans fell to 103,000 in May from 118,000 in […]

Noble & Company – Enterprise VCT

Type: Venture capital trust Aim: Growth by investing in unquoted companies and those listed on the Alternative investment market Minimum investment: Lump sum £2,000 Closing date: October 27, 2004 Charges: Initial 5.25%, annual 2% Commission:Initial 3.5% until August 31, 2004, 3% thereafter Tel: 020 7763 2200

Amex wrap deal with Thinc

American Express Financial Services Europe is primed to enter a strategic partnership with multi-distribution platform Thinc in a move marking the second stage of Amex&#39s wrap account rollout. The companies have signed a letter of intent for an agreement that will initially see Thinc integrate its business with the wrap, which launched in March this […]

Consumer panel adds two new members

The FSA has appointed two new members to the Financial Services Consumer Panel. Citizens Advice generalist adviser Carol Stewart joined the panel June 1 and Mail on Sunday journalist Tony Hetherington joins January 1 2005. FSA chairman Callum McCarthy welcomed the two new members and said the panel will continue to act as a strong, […]

Investment clock economic update

In the latest Investment Clock economic update, Ian Kernohan, Senior Economist at Royal London Asset Management, discusses the implications of the US Federal Reserve’s recent hike in interest rates and upcoming French presidential election. The value of investments and the income from them is not guaranteed and may go down as well as up and […]


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