Egg FTSE bond matures: Damn!!!

nrsql

Well the idea is that you should show extra profit for the extra risk.
You just have to pick the start and end points carefully to show that profit.

gozomark

"you should show extra potential profit for the extra risk", which is what these offer - you gamble the interest lost angainst a potential capital gain

baby_boomer

I'd have thought the current going rate for a ten year Life Assurance policy was also 0%.

The FTSE 100 index recently went below levels of 12 years ago and the Life Assurers are notorious for their poor performance, high charges and thieving from current investors to pay for their past overbonusing.

JoeCrystal

@alanwsg Well done, you managed to get your money back from investing on stock market! :j

Primrose

I sympathise, having also been caught by one of these stockmarket guaranteed funds in the past - also exiting with zilch. Now I avoid them like the plague. The stockmarket is just too volatile and many of the plans are so complicated with different indices you can never work out what you're going to get back.

sabretoothtigger

Thats true, if you had invested in a normal ftse tracker for six years without checking back at all then you would have lost money.
So for you this is one of the few times one of these products has done some good

However a normal tracker would have been more flexible so you could have closed it last year and made some money over five years since 2003 was very good timing on your part, this was a nadir now surpassed of course


In theory you could have hedged your bets and placed an options purchase or bet with a dealing company that the ftse would fall over 6 years. You would have got very good odds previously I think

But if you are clever enough to bother with that then you should have had the tracker anyway as this big fall was widely anticipated.
Dont kick yourself just learn from it and your'll make more money next time


Last year you beat Warren Buffets investments, you should feel rich :laugh:

XRS

alanwsg wrote: »

In March 2003 I put 10K in an Egg FTSE 6-year Bond.
It's final value was based on the FTSE100 on last Friday minus the FTSE100 in march 2003 times my 10K.
Return on my investment ..... zero.

Well that was a bloody great bit of investing, wasn't it.
Warren Buffet I am not!

My wife did exactly the same, however we are anticipating receiving a return of over 40%, since the terms of the bond were that the calculation of the closing level is based on the daily average of the FTSE closing index over the last year. By my calculation that was 5028.72 (from an original value of 3555.40), so having received the capital back on Friday I look forward to seeing what's there on Monday (as it matured on Friday and had to wait for the closing FTSE).

Don't lose all hope!

sabretoothtigger

Who was your bond with XRS and what was the capped upside to it?

I have read terms like that when I looked at these bonds also but Egg have been crafty enough to place all risk onto just one day it seems

XRS

I believe there was a cap, at around 50% but it was never invoked. As far as I am concerned Egg cannot change the terms for this 6-year-old investment, so I expect to receive the interest or there will be trouble!

sabretoothtigger

So you both had egg but your terms were better