An article published by the BBC has highlighted the continued struggle savers face as the current low interest rate environment endures. According to Moneyfacts, the average interest rate being offered by a cash ISA (Individual Savings Account) is now just 1.74%, compared to 2.55% a year ago. This reduction is believed to have occurred due to the Bank of England’s Funding for Lending Scheme, which has provided an alternative source of cheap money to the banks.
Alec Taylor, Head of TEP Investments at Surrenda-link said, “savers are finding it very difficult in the current economic climate, with their hard earned cash not delivering anyway near the kind of investment returns they used to achieve. Surrenda-link have worked extensively with institutional clients over the past 20 years to provide them with access to the UK TEP market. Through the recent launch of our stock list service, we now offer advisors and their investor clients direct access to individual TEP investments. We believe the attributes of the asset compare extremely well with the current alternatives available to savers through cash deposits and short term saving bonds.”
As an example, Taylor highlights that maturities during 2012 for a client that invested £2m in short dated stock in 2009\2010 have realised an average of 5.1%(*) annualised over the period. Taylor said, “the client recognised the opportunity to achieve returns in excess of cash, whilst having around 91%(#) of their capital effectively protected through the inherent guarantees within the endowment structure”
Surrenda-link believes that TEP investments should be a serious consideration for advisors looking for a high degree of security for their investor clients, but concerned about the low levels of return currently provided on their savings. For more information on how to invest in TEPs, please contact Paul Thomas on 01244 615 656.
*past returns should not be used as an indication of future returns.
# (Basic sum assured + accrued bonuses - total premium payments) / total acquisition price.
$ Investors should seek their own individual financial advice in relation to acquisition of a product.
No advice is offered nor available in relation to the suitability of any particular product.