New products - under the microscope

By THIS IS MONEY
Updated: 19:00 EST, 5 September 2000

The Royal National Pension Fund for Nurses (RNPFN) has launched an insurance-based ISA exclusively for health professionals and their partners. The introduction of oneISA-Insurance could be the first in a range of ISA products planned for release by the RNPFN over the next few years.

oneISA-Insurance is a mini ISA with a £1000 savings limit per tax year. Savings up to this amount can be topped up at any time. Investors can also subscribe to the ISA for as long as they choose and have full access to the account whenever it is needed with no penalty.

The current interest rate on the ISA is 7.25% per year. An annual charge of 2% is levied and there is a monthly flat rate fee for subscribers of £1. However, as an incentive to new investors the RNPFN is offering a waiver of monthly charges on this ISA up to September 2001. For more information contact the RNPFN on 0800 776677 or visit the website: www.rnpfn.co.uk.

This Is Money says: Remember that if you go for an insurance-based ISA this will limit your ISA choices for the year because there are allowance limits. For more details go to the Isa centre.

Leeds and Holbeck Building Society has launched a new issue of its two-year Escalator Bond. The main benefits of the bond are guaranteed rates and penalty free access in year two. In the first year the bond guarantees 6.15% until October 2001 and this goes up to 7% from November 1 2001 to October 31 2002. Minimum investment is £100 and the maximum is £250,000.

This is Money says: The bonds offer competitive rates for anyone willing to tie there money in for at least a year.

Merrill Lynch has brought out an alternative energy technology investment fund. The fund will invest globally and can hold up to 25% of its assets in unlisted companies. The charges are 1% per annum and there is a performance fee on top of a maximum of 1.5% if the fund performs above 10% in absolute terms and beats the FTSE Global Index. There are about 300 companies within the alternative energy sector of which only 90 are quoted. For a prospectus on Merrill Lynch New Energy Technology plc call 0800 445522.

This is Money says: One look at this tells us it is a risky investment to make. But it may make a valuable part of a broad portfolio of investments. Seek financial advice before investing.

Framlington is offering a fund linked to the Nasdaq stock market. The Framlington Nasdaq Fund ISA gives a 1% discount on the initial charge for all lump sum investors until December 31 2000, this reduces the initial charge from 5% to 4%. The annual charge is 1.5%.

This is Money says: Technology investments have been notorious this year for the rough ride given to investors. But in a broad portfolio there is a place for them. And the tech market has bounced back in recent weeks. Seek financial advice first though.