Bonds losing capital as indices decline

Professional Adviser
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Maturing Stock market-linked bonds have lost up to 67% of their capital but providers say many products have offered high income levels

Maturing stock market-linked bonds, that aim to provide downside protection have lost investors as much as 67% of their capital as the indices to which they are linked have fallen. Many of these products offered high income levels throughout the term of the product yet most of the focus is on capital returns, something product providers believe is unfair. According to analysis provided by Chartwell and Investment Week sister publication, Protected Investment Plans, bonds from Canada Life, NPI, Scottish Mutual and Eurolife matured with the indices to which they are linked down from their ...

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