Despite recent stock-market blips, Ulster Bank has confidently launched a new product based on the Nasdaq 100 Index. The bank's Nasdaq Bond is linked to the quarterly returns of the index and offers 100 per cent capital protection after three years regardless of the index's performance.
Investors' returns are limited to 8 per cent gross per quarter and are based on the quarterly returns of the index over the three-year term. For example, if the Nasdaq rises by 20 per cent in a quarter the maximum return is capped at 8 per cent and any quarterly losses are also included in the overall calculation. However, if at the end of the three-year term the sum of the quarterly returns is negative, an investor would be repaid his or her full initial investment. All charges are built into the product and 100 per cent of the investor's initial investment is applied to the performance of the index.
The minimum investment in the fixed-term product is £5,000 (€6,349) and the maximum is £250,000. Early withdrawal is not permitted. The bond closes on May 30th or sooner if the product is fully subscribed.
:quality(70)/cloudfront-eu-central-1.images.arcpublishing.com/irishtimes/VR3765MFOBH2NMV2QNICYDF67M.png)