Canada Life's High Income Bond Series Three is targeted at investors who have used up their Isa limits and are seeking income from other investments.
Linked to the Nasdaq-100 index, which includes technology stocks such as Microsoft, Apple Computers and Yahoo!, the bond pays income on a quarterly or yearly basis. There is also a growth option.
Although the income that the investor gets back from the bond is a fixed percentage of the amount invested, the amount of capital returned depends on the performance of the Nasdaq-100 index.
In a safety net feature of the bond, the Nasdaq-100 index has to fall to more than 20 per cent of its price at the start of its three-year term before the capital returned starts to diminish on a set scale.
Although there are fears of a market correction in the near future, the fact that the bond has a three-year term and a 20 per cent safety net should dispel some of the concerns about such a fall.