Foreign investment advice please

Aegis

dunstonh wrote: »

Normally you would be shot down by all the regulars on that stating that GEBs are a naff product where only the issuer makes gains.

However, I finally found a good one (last good one in my opinion was back in 1995). So, I would say that most of these are rubbish.

Hang on, what? Is Satan skating to work today?

Do you mind identifying the good GEB as a matter of interest for the rest of us, or would that be difficult from your professional position?

tradetime

dunstonh wrote: »

Normally you would be shot down by all the regulars on that stating that GEBs are a naff product where only the issuer makes gains.

However, I finally found a good one (last good one in my opinion was back in 1995). So, I would say that most of these are rubbish.

LOL, by and large I would not look twice at them as I manage my own activities in the stock markets so I've never had the interest to look closely at them. Personally I'd say most managed entities leave a lot to be desired.

dunstonh

Hang on, what? Is Satan skating to work today?

Possibly. I haven't run through the small print but just the flyer so far. The flyer looks interesting but I will read the small print later to see if I can pick holes in it.

Do you mind identifying the good GEB as a matter of interest for the rest of us, or would that be difficult from your professional position?

I will name it but THIS IS NOT ADVICE. I haven't given it the full work over yet. Its an institutional based GEB rather than a retail GEB. Its the Premier UK Growth Plan issue 37.

Its linked to FTSE100. Its a 6 year term but each anniversary has a kick out option for early maturity.

Year 1 - is the Closing Value of the Index equal to, or greater than, the Start value? if yes: Net investment returned +16% Growth If no, it rolls into year two.
Year 2 - is the Closing Value of the Index equal to, or greater than, the Start Value? if yes: Net investment returned +32% Growth. If no, it rolls into year three.

and so on until end of year 6 (where 96% is the kick out growth if break even).
Did the Index remain above 50% of the Start Value throughout the life of the Plan? If yes and never shows a positive on the anniversary date you get return of capital.

The negative point is:

If, at any time during the life of the Plan, the Index has fallen below the Start Value by 50% or more, then you will lose 1% of your capital for each 1% that the Final Value is below the Start Value.

That effectively turns it into a old style passive tracker if things go badly wrong.

Now my initial feelings are that it could be quite good for those that don't mind a bit of risk and can see this being useful for their UK large cap equity part of their portfolio. Worst case is that it will be closer to a FTSE100 tracker if it loses money. Or you only get 16% a year if the FTSE makes more than 16% (yeah as if that is likely in the next 12 months!!). With the FTSE100 at its current level there is a good chance that it could be just a few percent up on its current level on anniversary and that would kick you out with 16% growth.

Cook_County

Given their attitude to risk I am confused why they (or you) are thinking in Sterling this this adds significant currency risk. Is their any reason why they do not have all of their savings in Euros since they live permanently in the Eurozone?

missile

There are options available in Spain with very little risk. Many banks are offering circa 5% on savings products and more on investment products.

IMHO, there is no such thing as "a safe investment". An 80 year old adverse to any risk ought not be considering ANY investment products, whether they are in Spain or UK.

Treading_Water

I think that there funds are currently offshore. But as they have had no return at all for their money in the last 2 years I am really just trying to decide where the best place for it would be.
Given the exchange rate at the moment is it not a good time to convert some to sterling and take it back out when the rate improves?