Canada Life is offering a high yield income bond linked to the Nasdaq 100 that aims for 11% pa gross...
Canada Life is offering a high yield income bond linked to the Nasdaq 100 that aims for 11% pa gross fixed income, writes Kira Nickerson.
The high yield income bond, issued by the group's offshore subsidiary, Canada Life International, has a minimum investment of £10,000.
Investors can also chose a monthly income option producing gross returns of 0.87%.
The Platinum income bond includes a growth option in which no income is payable but the capital and growth of 35% will be returned at the end of the term if the Nasdaq does not fall more than 20% below its starting level.
If the level of the Nasdaq 100 on the 28 July 2003 is no more than 20% lower than its level on 28 July 2000, then investors will receive full capital return plus the guaranteed income growth.
The bond matures on 28 August 2003. IFAs can receive 3.5% commission on the amount invested.
Neil Stevens, executive director of the IFA division at Canada Life, said that according to Datastream since the index began in 1985, in any three year period it has never ended the period 20% or more below its level at the start.
Canada Life is giving bonuses for early investment, which will increase the amount invested by up to 0.60%.
The offer will close on the 21 June 2000. If the bond is fully subscribed, however, the offer will close earlier.
For more information contact www.canadalifeint.co.uk
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