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Skipton bonds with the FTSE 100

Skipton Building Society’s latest addition to the guaranteed equity bond market is its three-year growth bond.

The bond is linked to the FTSE 100 index and is aimed at the careful investor who is looking for growth but who wants to minimize any potential downside by taking as few risks as possible.

The investor guaranteed that the original capital will be returned in full at the end of the three year term even if the FTSE 100 goes down. Skipton is also allowing the bond to grow by one cent for every one per cent rise in the index, up to a maximum of 40 per cent of the index.

The bond is a limited edition and will be withdrawn when fully subscribed. It comes into the lower end of the market for returns for a guaranteed equity bond. These vary from 40 per cent of the growth, from the guaranteed equity bond from the Woolwich to 70 per cent of the growth, from the guaranteed investment bond from Scottish Legal Life.

Over a three-year period the FTSE 100 index went from 4,831 points on November 28, 1997 to 6,249 points on November 28, 2000.

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