Bank of Ireland launches global growth bond for private clients
Date: Nov 02, 2012
Categories: Markets & Exchanges, Retail Banking
Keywords: Bank of Ireland
October 29th 2012 - Bank of Ireland Private Banking has today (29 October 2012) announced the launch of the fourth in its Secure Global Growth Bond series. This is a deposit based investment for private clients who wish to protect their invested capital against market falls, secure a fixed return and also profit from capital growth if the market rises. The Bank’s investment team select the portfolio of shares underpinning the Secure Global Growth Bond. The focus in this selection is on high quality shares, trading at an attractive valuation diversified by region and sector, with strong balance sheets and competitive positions in their individual sector.
The Secure Global Growth Bond is aimed at investors who require 100% capital protection and are looking for both a minimum fixed return combined with real opportunities for capital growth.
- Capital is secure at end of the Bond’s 4.5 year term.
- 50% of the investment earns a fixed return of 15.4% (it is paid out over the term in four regular gross interest payments at a rate of 3.85%)
- The return on the remaining 50% of the investment is unlimited and is based on the performance of an actively managed portfolio of shares selected by Bank of Ireland Private Banking’s investment team.
According to Kevin Quinn, Investment Director, Bank of Ireland Private Banking:
“Investors have become understandably more cautious in recent years with the focus very much on the rate of return on deposits. As deposit rates fall, cautiously minded investors will once again have to seek out returns from more diversified portfolios. The Secure Global Growth Bond can be a valuable addition to such a portfolio, meeting both the need for capital security but also providing investors with some exposure to markets to help boost potential returns. These products have proven to be popular with private clients looking to invest funds in the current environment.
Unlike similar products in the market, the shares have been specifically selected by our investment team and this selection is actively managed over the term of the investment. Suited to the cautious investor who can lock away capital for a number of years, we maintain a careful monitoring of the risk in the portfolio of shares throughout the investment”, concluded Kevin Quinn.
The Secure Global Growth Bond minimum investment is €250,000 and will be open to investors for a limited time until 30th November 2012. Private clients looking to learn more about the fund should contact their Private Banking Manager or Bank of Ireland Private Banking at their offices in Dublin, Cork and Galway.
Re-disseminated by The Asian Banker