Britannia International has expanded its offering with the launch of two capital guaranteed bonds. ...
Britannia International has expanded its offering with the launch of two capital guaranteed bonds.
These are a three-year guaranteed bond (issue two), which is linked to the FTSE 100 and an Optimum Growth bond (issue 16), which pays a return of 140% on the average growth in the FTSE 100 and DJ Eurostoxx 50 indices.
Wayne Riches, client relationship manager at Britannia International, said the three-year bond was designed as a short-term equity-linked product.
He explained: "Although there is a trade off between the shorter length of term and the overall time for growth, many investors feel there is potential for short-term gains, particularly at a time when the market has taken a dip." Commission on this bond is set at 2.25%.
In comparison, Riches said the maturity on the Optimum Growth bond depended on its performance. For example, if the indices were to rise by more than 20% after two years, the bond would mature with a return of 9.54%.
If this was not achieved, the bond would run for an additional two years and only mature if the indices grew by more than 40%, giving investors a return of 8.78%. However, he said there was scope for the bond to run for another two years if returns were not met in the first four years.
Riches added: "The Optimum Growth bond, along with the majority of our other structured products, has traditionally been linked solely to the performance of the FTSE 100. However, we now felt it was time to broaden the appeal of this product, particularly to clients who have an interest in investing in the other markets." Commission on this bond is 3%.
For both products the minimum investment is £10,000, however, trust and corporate business clients have a minimum investment of £50,000. Both products are 100% capital guaranteed. For investors that put money in before 27 July, a bonus of 0.4% is payable.
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