Select income and growth bond 3 offers growth & income options and two risk profiles
Scottish Life International has launched a three-year, fixed-term investment bond offering growth and income options plus a range of capital protection levels.
The Select Income & Growth Bond 3 features two risk profiles: opportunity and cautious. Investors in the opportunity option can take 10% gross income per year for three years, 2.4% gross income per quarter or up to 32% gross growth at the end of the term.
The cautious option offers 8% gross income per year for three years, 1.9% gross income per quarter or up to 25.5% gross growth upon maturity.
Alternatively, a balanced mix is available, with the investment split between the two options. The offer period is open until 18 October, maturing on 22 December 2005.
The return is based on the performance of the FTSE 100, S&P 500 and Dow Jones Euro Stoxx 50. Investors in the opportunity income option will receive their full initial investment at maturity provided none of the indices falls by more than 30% by November 2005. If these conditions are not met, initial capital on the annual and quarterly income options will be reduced by 2% and 1.96% for every 1% the final index falls up to 30% and 1% for each 1% fall in the index thereafter.
For the cautious income option, initial capital is reduced by 2% and 1.96% per 1% drop if the index falls between 15%-45% and 1% for every 1% thereafter. In the opportunity growth option, each 1% drop in the index up to a 30% fall will reduce the payout by 2.066%, with 1% falls in the index knocking 1% respectively off the final payout thereafter.
Initial investment in the cautious growth option will be reduced by 2.066% for each 1% fall between 15%-45% and 1% for every 1% fall beyond that.
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