Irish Life International has introduced the 10th issue of the secured growth bond, a guaranteed equity bond that is linked to the performance of the FTSE Eurotop index over a five-year term.
Investors can have their bond denominated in sterling or euros and can also choose from two capital protection options. Protecting 90 per cent of capital produces a return of 140 per cent of the average growth in the index for sterling investments and 125 per cent for euro investments. Capital protection of 100 per cent produces a return of 85 per cent of the growth in the index for sterling investments and 70 per cent for euro investments.
To calculate the returns, the closing level of the FTSE Eurotop index is measured at the start of term and compared with an average of its quarterly levels throughout the term.
Some investors may find the bond more appealing than similar products because it allows them to tailor the currency denomination and capital protection to their individual needs. Manor Park's range of guaranteed growth funds offer a wider choice of capital protection than Irish Life International. The Manor Park UK Capital Growth fund allows investors to protect between 85 per cnet and 110 per cnet of their capital through six options.
The Manor Park product also offers slightly higher returns than Irish Life International. Protecting 90 per cent of capital produces a return of 160 per cent, 20 per cent hgiher than Irish life International. Similarly, protecting 100 per cent of capital produces a 100 per cnet return. however, the Manor Park is available in sterling only.