Baronworth Investment Services has joined forces with Investlife
Luxembourg to produce the high income & growth bond.
The product is a guaranteed equity bond and is aimed at the
medium-risk investor looking for a product that gives either income
or growth over a five-year period.
Investors can choose to take either 2.44 per cent income every
quarter, 10.45 per cent income every year or roll the growth up to 61.2
per cent over the term of the investment.
The bond will invest in eight areas of the Dow Jones Euro Stoxx 50
index. These will be energy, banks, insurance, autos, food and
beverages, media, chemicals and healthcare.
Some of the companies listed in these areas of the index include
British Petroleum, Royal Dutch Petroleum, Barclays, Lloyds TSB, ICI,
BOC, Porsche, Pirelli, Cadbury-Schweppes, Heineken, Legal
& General, Skandia, BSkyB, Reuters, Astra Zeneca and
At the end of the five-year period the capital will be returned in full, as
long as the final value of the worst performing area is above its
This product is similar to the Scottish Mutual income bond, which
invests in the FTSE 100 and S&P 500 indices, with both
income and growth options available. Although the Scottish Mutual
product only runs for a three-year period, the original return is
guaranteed to be returned unless the stocks in the index fall by more
than 30 per cent in the last year.
Over the past five years the Dow Jones Euro Stoxx 50 index has more
than doubled in value, rising from 1,604.5 points on September 4,
1996 to 3,600.5 points on September 4, 2001.