Abbey National launches its High Income and Growth Fund tomorrow which is targeted at investors...
Abbey National launches its High Income and Growth Fund tomorrow which is targeted at investors wishing to maximise their income but are willing to accept a degree of capital risk.
The fund provides a high fixed income either of five annual payments of 7% or 60 monthly payments of 0.55% over the term. Alternatively, investors' capital has the potential to grow by 37% over the five year term.
The fund's performance tracks the Dow Jones Eurostoxx 50 Index - an index of leading European companies such as Unilever and Volkswagon.
The full capital will be repaid, as well as the income or growth, provided the index does not fall below the level of 17 October 2001 between the dates of 17 November 2006 and 14 December 2006. For every 1% fall there will be a corresponding 1% fall in capital.
Paul Masters, Abbey National's investments marketing director said: "The prospect of 7% income per annum or 37% growth over the five year term is an attractive feature. We have carefully balanced the risk with reward to make this an appealing offer. We track the performance of the Dow Jones Eurostoxx50 Index measuring 50 stocks, which provides a balanced portfolio rather than using individual stocks chosen by some competitors which is more risky."
The fund is on a limited issue and Abbey expects it to sell out before the closing date of 3 October 2001. The fund is also offered as an ISA so all returns are tax-free. For more information contact 0800 302030.
An added tier of asset management can of course deliver additional benefits for certain investors, writes Graham Bentley - just be sure you can justify it to the regulator and, especially, the client
The government is "in daily contact" with industry figures over the pensions dashboard as it prepares for the roll-out and its feasibility report, Guy Opperman has said.
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From 1 April 2019
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