Canada Life is launching a high income bond guaranteed to 10.5 per cent over a three-year period.
The High Income Bond Series II will be launched on November 1 1999 with “early bird” bonuses increasing the amount invested by up to 0.6 per cent.
Capital return is linked to the Dow Jones Eurostoxx 50 Index.
In the income version if the index falls by 10 per cent the minimum return for income versions will be the original investment minus income received. In the growth version the minimum return is the original investment.
A fall greater than 10 per cent reduces the returned investment by 1 per cent for each one per cent fall.
The minimum investment is £7,500. The bond offers IFAs 3 per cent commission on the amount invested.