Nvesta, the Eurolife subsidiary, is to launch a three-year product with returns linked to the perf...
Nvesta, the Eurolife subsidiary, is to launch a three-year product with returns linked to the performance of the FTSE 100 and S&P 500 indices.
The Safety First plan offers three options to investors ' 8% annual income, 36 monthly payments of 0.62%, or 26% at maturity.
Invested capital is not protected if either of the two indices has fallen by more than 30% of its starting level at any point in the last year of the product's lifetime. If this occurs, the total loss of invested capital is 1% for each 1% fall in both indices.
Therefore if the FTSE 100 fell by 31% and the S&P 500 fell by 29%, the total loss would be 60% of invested capital. The capital return is based on the lowest closing level of the indices during the period 14 December 2005 to 13 February 2006. The plan matures on 28 February 2006. Minimum investment is £5,000 with a maximum of £1m, and the plan is open to lump sum Isa investors for the tax years 2002/03 and 2003/04, and is also open to Isa and Pep transfers.
Investments of over £15,000 receive an additional 0.25%, over £30,000 an additional 0.5%, over £60,000 an additional 0.75% and over £100,000 a 1% enhancement. IFA commission is 3%.
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