Scottish Life International has launched a capital protected bond with a minimum growth feature. C...
Scottish Life International has launched a capital protected bond with a minimum growth feature.
Called the Protected Bonus bond it will provide investors with 100% capital security, and minimum growth of 18% and a maximum of 54% over a six year and two month term.
Annual bonuses are linked to the performance of the FTSE 100, Euro Stoxx 50 and S&P 500. Provided the closing levels of the indices are at or above their starting levels throughout the 10 working days prior to each product's fund anniversary, a bonus of 9% will be paid.
Capital and minimum growth are secure irrespective of market performance, Scottish Life International said. However, security and minimum growth only apply to investments held for the full term.
Intermediary commission is set at 3% and investors receive a bonus allocation rate of 100.15% if they invest before 29 November. The product offering closes on 13 December and minimum investment is £10,000.
Charges are implicit in the bonus levels offered and will not normally exceed 8% of invested capital.
Scottish Life International has designed the Protected Bonus bond to appeal to investors in its previous bond offering, the Deposit Bonus Bond, which matured at the end of October and hopes to attract £30m into the product.
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