As a complete novice I'm looking for a little advice about buying bonds. There's a new Ulster Bank product which looks great but I'd appreciate any advice from people about whether it's a good idea or not.
This is the info on their website about it.
Ulster Bank launches Emerging Markets Bond
Ulster Bank has launched the Emerging Markets Bond, a new investment product linked to the biggest stocks in the stock market indices of four of the world's fastest growing emerging markets - Brazil, Russia, India and China. The bond offers customers 100% Capital Security at maturity and is available over two term lengths - a 3 year 11 month or a 5 year 11 month term.
The Ulster Bank Emerging Markets Bond offers:
Commenting at the launch of the Bond, Mr Patrick Farrell, Head of Product Management at Ulster Bank said: "The Ulster Bank Emerging Markets Bond offers investors exposure to the biggest stocks in some of the world's fastest growing markets. Between 2000 and 2005, BRICs have contributed 28% of global growth, and now have more than 15% of global trade, more than double its levels in 2001*. This growth, combined with the 100% capital security at maturity***, offers customers a combination of security and growth potential, while the minimum investment level of €3,500 makes this product affordable to a wide range of potential customers."
The minimum deposit for the Emerging Markets Bond is €3,500 and the closing date for applications is 6th April 2007, or earlier if fully subscribed. The Ulster Bank Emerging Markets Bond is available from Monday 22nd January 2007 through Ulster Bank's 115 branches and 9 sub branches in the Republic of Ireland.
My SSIA is due to mature and I'd like to put €3,500 into this Emerging Markets Bond. I won't be touching it for the three year period but I'm wondering what does it mean that it'll be capped at 30pc? What would I be likely to get at the end of it? I'm going to try and seek independent financial advice before handing over my cash but any advice would be appreciated.
This is the info on their website about it.
Ulster Bank launches Emerging Markets Bond
Ulster Bank has launched the Emerging Markets Bond, a new investment product linked to the biggest stocks in the stock market indices of four of the world's fastest growing emerging markets - Brazil, Russia, India and China. The bond offers customers 100% Capital Security at maturity and is available over two term lengths - a 3 year 11 month or a 5 year 11 month term.
The Ulster Bank Emerging Markets Bond offers:
- Exposure to the biggest stocks in the stock market indices of the world's fastest growing economies (Brazil, Russia, India and China). These four countries alone contributed 28% of total global growth between 2000 and 2005*.
- Two term lengths to suit differing investment requirements
- 100% Capital Security at Maturity
- 100% Participation in the combined growth of the four indices capped at 60% (CAR** 8.27%) for the 5 year 11 month term and 30% (CAR** 6.94%) for the 3 year 11 month term.
Commenting at the launch of the Bond, Mr Patrick Farrell, Head of Product Management at Ulster Bank said: "The Ulster Bank Emerging Markets Bond offers investors exposure to the biggest stocks in some of the world's fastest growing markets. Between 2000 and 2005, BRICs have contributed 28% of global growth, and now have more than 15% of global trade, more than double its levels in 2001*. This growth, combined with the 100% capital security at maturity***, offers customers a combination of security and growth potential, while the minimum investment level of €3,500 makes this product affordable to a wide range of potential customers."
The minimum deposit for the Emerging Markets Bond is €3,500 and the closing date for applications is 6th April 2007, or earlier if fully subscribed. The Ulster Bank Emerging Markets Bond is available from Monday 22nd January 2007 through Ulster Bank's 115 branches and 9 sub branches in the Republic of Ireland.
My SSIA is due to mature and I'd like to put €3,500 into this Emerging Markets Bond. I won't be touching it for the three year period but I'm wondering what does it mean that it'll be capped at 30pc? What would I be likely to get at the end of it? I'm going to try and seek independent financial advice before handing over my cash but any advice would be appreciated.