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Unlock the investment door

Keydata Investment Services has introduced a third issue of secure growth portfolio. It differs from previous versions, offering capital protection from 80 to 100 per cent.

The bond is linked to six externally managed Oeics over a five-year term: HSBC UK growth & income, Norwich Union European equity, JP Morgan Fleming premier equity growth, New Star UK growth, Newton income and Threadneedle American select growth.

The HSBC, New Star and NU funds each carry 20 per cent of the portfolio. The Newton and JP Morgan Fleming funds take 15 per cent each, with 10 per cent in Threadneedle. To calculate the final return, the monthly price of each fund is averaged out throughout the term.

With 100 per cent of the capital protected, 100 per cent of the average of any growth in the funds is payable. Protecting 90 per cent of capital gives 150 per cent growth and 80 per cent capital protection gives 200 per cent growth.

This bond could suit investors willing to give up some growth potential in return for capital protection. However, protection only works where the investment is held for the full term.

According to Standard and Poor&#39s HSBC UK growth & income is ranked 24 out of 244 funds, JP Morgan Fleming premier equity growth fund is 93 out of 244 funds and Newton income is 44 out of 244 funds. Norwich European equity is ranked five out of 89 funds and Threadneedle American select growth is ranked eight out of 75 funds, based on £1,000 invested on a bid-to-bid basis with net income reinvested over three years to March 4, 2002. There is no three-year past performance for New Star UK growth.


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