The investor’s capital is divided into two, with 50% linked into the income portion of the bond and the other 50% to the growth element. So on half the investment, the bond pays an annual income equal to the prevailing Bank of England base rate plus 0.65%.
On the remaining half, investors will receive 65% of any growth in the FTSE 100 Index over the five-year term. Regardless of the return, capital is 100% protected provided the Bond is held through to maturity.
“We have opted for the base r
The week on Risk.net, July 7-13, 2018Receive this by email