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SLI reopens with-bonus bond

Scottish Life International is to reopen its protected with-bonus bond to new business.

SLI says the bond is an alternative to traditional with-profits bonds. It offers a def-ined level of capital risk and clearly defined quarterly stockmarket bonuses.

The company say there is potential for returns of up to 4.42 per cent in the current quarter. The bond is linked to the FTSE 100, S&P 500, Euro Stoxx 50, Nikkei 225 and Nasdaq 100 indices.

Provided that these underlying indices have not fallen at the end of each quarterly period, the bond pays fulland predetermined bonuses each quarter.

Partial bonuses will be paid if one or more of the indices has fallen by up to 5 per cent. Only if all five indices havefallen during the quarter will no bonus be paid.

SLI says all five indices have only fallen by more than5 per cent twice in the last 60 quarters.

It claims this will make the bond attractive to cautious investors and those expecting the market to remain flat over the next quarter.

The company says that, despite the low-risk design of the product, its simulated results project the bond would have produced 15-year annual average growth of 12.03 per cent gross, meaning it may appeal to investors looking for higher rates of return than available on the high street or from with-profits bonds.

Minimum investment is £15,000 with no limit on the maximum. There is also a facility to make additional investments.

Marketing director John Allison says: “Investors in the bond have already seen impressive returns in the first quarter. Many investors have become increasingly aware that with-profits bonds are not necessarily a safe haven for their money and they are seeking viable alternatives.”

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