Premier Fund Managers is to enter the structured product market with a vehicle offering investors 7....
Premier Fund Managers is to enter the structured product market with a vehicle offering investors 7.5% gross income per annum or 42% growth over five years.
The UK Income & Growth Plan also offers a monthly income option of 0.6% with returns linked to the performance of the FTSE 100. The bond, set up as a Dublin-listed, closed-end investment company, also has a capital lock-in that guarantees full return of capital, regardless of later market falls, if the level of the FTSE 100 rises to more than 40% above its starting point at any point during the product's lifetime.
The minimum investment is £7,000, which makes it suitable for Isa investors and Isa and Pep transfer business. Intermediary commission is up to 4%.
The offer period closing date is 16 April, and the cut-off for Pep transfers is 2 April. Assets invested before 16 April will receive interest of 5% per annum until the strike date of 30 April.
The product has a 25% safety threshold built-in, but, if during the life of the product the FTSE 100 falls below, and stays below 75% of the index's level on the start date, then investor capital will be lost on a two for one basis.
If the FTSE remains above 75% of the start level throughout the life of the bond, then investors will receive 100% of their capital back. Capital is also returned if having fallen below 75%, the value of the index rises above the safety level (75%) for the entirety of the final six weeks of the product's life.
Slow progress in improving diversity
Share purchase deal with assets of £28m
Came into effect in January
Three examples of compensation rule issues
Buying in baskets