Scottish Legal Life has introduced the fourth tranche of its Guaranteed Investment Bond.
There has been a steady stream of guaranteed bonds throughout the year, but they are usually linked to a benchmark index such as the FTSE 100. This unit-linked bond invests in the stockmarket through the Britannic higher yield fund.
At the end of the bond's five year term, investors will get their original investment back and 70 per cent of the underlying fund's growth. The higher yield fund invests in a range of high-yielding securities including financial, industrial and consumer goods.
As a guaranteed product, the bond is likely to appeal to more cautious investors who are looking for growth rather than income and who are not keen on putting their capital at risk.
According to Standard & Poor's the Britannic higher yield fund is ranked 49 out of 86 fund based on £1,000 invested on a bid-to-bid basis with net income reinvested over three years to October 9, 2000.