Investors seeking security, an annual income and who do not want to tie up their funds for long periods may be interested in Harvester 3, the third bond in the Harvester investment series which has just been launched by Anglo Irish Bank and Liberty Asset Management.
A four-year bond, with a 100 per cent capital guarantee from Anglo Irish Bank, it is based on the performance of the S&P 500 index of US shares.
The bond pays up to 9 per cent per annum and even if the market falls by up to 9 per cent every quarter, the investor can still earn that amount.
Every quarter the market stays within a range between plus 9 and minus 9 per cent, the investor is paid 2.25 per cent. This gain is locked in and paid out at the end of each year.
But if the market falls or rises by more than 9 per cent, no gain is made on the bond and it starts afresh the next quarter.
The Harvester has an entry charge of 1.5 per cent and will close for investment on or before November 24th. Its predecessors, Harvester 1 and Harvester 2, were oversubscribed and closed early.
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