Allied Dunbar is linking up with Bristol & West to offer a Tessa-only Isa from early next year linke...
Allied Dunbar is linking up with Bristol & West to offer a Tessa-only Isa from early next year linked to returns from the UK, US and Japanese stock markets, writes Leo Bland.
The product, called the Guaranteed Tessa Only Isa, will guarantee to return 100% of capital invested after five years and will pay returns of 75% of the average growth in the FTSE 100, S&P500 and Nikkei 225 over the term. The product will be based on a five-year deposit account offered by Bristol & West, which will be linked to the three indices.
There are no initial or annual management charges on the Tessa-only Isa, with the cost of the options used to back the capital guarantee paid for by limiting the exposure to the growth in the UK, US and Japanese stock markets to 75%.
Clients can only invest Tessa capital, not interest, and the minimum investment is £2,000 while the maximum is £9,000. Clients must roll over the full amount of capital they subscribed to their Tessa and their investment in the Guaranteed Tessa-only Isa will not count towards their annual Isa subscription limit.
The product will be distributed through Allied Dunbar's 5,000-strong franchise network, who will be paid a fee of 2% of the amount each client invests in the Tessa-only Isa.
There will be three tranches of the product issued, with the first offer period running between 1 January and 31 January, with a start date of 14 February. The second offer period will be in February to 28 February followed by a third period in March.
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