View more on these topics

Endowment fund reaches 160% guarantee ratio

The Endowment Growth Fund (EGF) advised by TEP market maker PolicyPlus, has achieved a guarantee ratio of 160% of net asset value, despite recent periods of great stock-market volatility.

Investors who have made an investment of £100,000 will now be covered by £160,000 of guarantees in sums assured plus attaching bonuses.

Since its inception in December 1998, EGF has achieved a growth of 17%, against a total fall of 28% in the FT-SE 100 Indx over the same period.

Graham Cottingham, investment director PolicyPlus, investment advisers to the Endowment Growth Fund, says: “The strength of underlying guarantees currently available from the EGF should be particularly attractive to intermediaries and investors looking for lower-risk investment possibilities at a time of great market volatility.

“EGF is actively managed, and each policy held by the Fund is reviewed frequently with a decision taken on whether to hold or sell the policy, based upon careful consideration of market conditions over time. Together with the safeguard of an independent actuary checking the best decisions have been recommended, this acts as a continual quality control mechanism”

The EGF is designed to form part of an overall investment portfolio and is attractive to professional and institutional investors, private trusts and SIPP or SSAS pension arrangements.

As an open-ended fund, the Endowment Growth Fund is able to buy and sell polices at the time in their terms when they offer the greatest growth. Closed ended funds buy policies to mature at dates to coincide with the term of the fund itself, and therefore hold the policies until their maturity dates &#45 while the best growth can be achieved in the middle years of their term.

Recommended

Correspondent lending written into regulatory plan

Correspondent lending will be regulated after N3, writes Harriet Williams.Classing correspondent lenders as a type of packager, the Treasury said their business would fall under the regulated activity of “arranging”.Nigel Gardner, operations director of Genesis Home Loans, says: “I don&#39t think this announcement will surprise anyone and anyone who thought any part of the mortgage […]

Younger buyers sustain property market

People in their 20s are driving property market, with one in four looking to buy a home within the next two years. Despite homebuyer confidence falling to its lowest levels since its moving improving index began, Alliance & Leicester says 20-somethings represent the largest group in the UK with the intention to buy. Only 11% […]

Umbrella extended to cover mortgage intermediaries

Intermediaries who advise and arrange regulated mortgage contracts will be covered by the appointed representatives regime from 2004. Last Thursday, the Treasury said respondents to the original consultation document had no fundamental objection to extending the regime to mortgages. But it did say many were concerned with the detailed rules that may surround the regime. […]

Leeds & Holbeck launch new 5-year fixed

Leeds & Holbeck has launched a new 5-year fixed rate mortgage free from completion or higher lending fees and without any lock-ins. The mortgage is available at 5.49% for loans up to 90% of property value or 5.89% up to 95%. o Key product details are:o No mortgage indemnity fee up to 95% loan-to-valueo Unlimited […]

Newsletter

News and expert analysis straight to your inbox

Sign up