Both groups devise guaranteed capital equity bonds linked to the performance of the ftse 100
Britannia International and Bristol & West International (B&WI) have both launched guaranteed capital equity bonds.
Britannia's Guaranteed Capital Equity Bond Issue 12 invests in the FTSE 100. It opened earlier this month and is available until 6 March.
The bond links an investment to the performance of the stock market but with no risk to capital as the original investment is guaranteed to be returned in full.
It has a term of five years and offers a potential gross return of 35% over five years or 6.16% per year if the FTSE 100 rises or remains the same over the period.
Early investment interest of 6% gross per year is paid on all deposits from the date of investment up to the bond's start date of 6 March.
The bond is a strictly limited issue and may be withdrawn early if it becomes fully subscribed. The minimum investment is £1,000, with a maximum of up to £500,000.
Other products by Britannia International include 30 and 90-day notice accounts and the offshore 18 bonus account. The company provides more than 18,000 depositors around the world with a range of investment accounts.
B&WI's capital guaranteed equity bond is to be managed against the performance of the FTSE 100, rather than simply tracking the index. The Dynamic FTSE Guaranteed Equity Bond is a six-year FTSE 100-linked investment that uses a technique known as 'defined asset allocation' to keep the exposure in the index to an optimum level.
This means in a bull market, the strategy will over-buy to gain exposure to the performance of the FTSE 100, but in a bear market, the level of participation will be lowered to reduce exposure to falls. JP Morgan Chase Bank will undertake derivative trading for the product.
Marc Mears, group product manager at B&WI, said: 'The bond will trade on a regular basis as it follows what the market does. It is designed to perform well in volatile and stagnant market conditions.'
B&WI stresses past performance should not be a guide for the future but in back-testing by JP Morgan, the product outperformed the FTSE 100 under all market conditions.
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