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Bristol & West six-year bond to pay 5% monthly income

Bristol & West is offering a six-year income and growth bond aimed at the IFA market.

The bond is comprised of two elements, a guaranteed equity bond aimed at achieving capital growth and fixed-rate deposit account paying a monthly income of 5 per cent gross.

The guaranteed equity bond provides a return of up to 80 per cent of the growth of the FTSE 100, Eurostoxx 50 and Nikkei 225 stockmarket indices. The initial investment sum is guaranteed even if stockmarket indices fall.

The minimum investment is £5,000 in the growth element and £1 in the monthly income element. IFA commission is 2 per cent.

Bristol & West piloted the bond through five intermediaries using direct mailing and bespoke product literature.

Development manager Andy Jones says: “The income and growth bond is an exciting development which gives investors the best of both worlds.

“The bond offers a lifeline to the growing number of people who require a regular income from their investments but who do not want to risk their capital.

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