TWO more tracker bonds have been launched onto the market by Canada Life and National Deposit Brokers, both with a focus on the Far East.

Canada Life has brought out its first all Asia tracker called the Asian Tiger Bond, linked to the Asian 5 index that represents 75 companies in Hong Kong, Thailand, Indonesia, Malaysia and Singapore. The Indonesian and Thai companies represent 14 per cent of the index.

Canada Life's assessment of the growth potential of the area is very high, despite it being a region that "has been underperforming over the past three years". Nevertheless it believes it offers "significantly better value than many other markets and has virtually unlimited potential",

Over the past 20 years, says the company, the region has produced economic growth of 7 to 8 per cent per annum and returns of 110 per cent since January 1992. (Building society returns over the same period have been 22 per cent.)

Canada Life requires a £5,000 minimum investment from clients for this bond which lasts five years and three months the usual capital guarantees apply plus a maximum 100 per cent return of any growth in the index over the period. The bond closes on May 2nd with up to 0.5 per cent bonus allocations to your fund if you invest before April 18th.

Meanwhile, National Deposit Brokers (NDB) has just launched its second tracker bond, The High Growth Bond - linked to European and Japanese stock markets over the next three years and nine months. The deposit taker this, time is Woodchester Credit Lyonnais Bank. The minimum investment is just £2,000.

NDB has chosen a very simple design for this tracker options have been taken out in which 75 per cent of funds track the performance of the European markets with the remaining tracking the Nikkei 300 index. At the end of the period, your capital is guaranteed to be returned as well as 100 per cent of any growth achieved.

The added bonus with this tracker, is that any investments made prior to the closing date of April 25th will earn 5 per cent interest.

NDB is confident not just that the French and German markets are coming out of recession and are therefore a good bet in the lead up to EMU, but that Japan offers "excellent growth potential particularly as it is 50 per cent below its historical high". This is familiar territory for anyone who has watched other institutions consistent, and not always justified support, for the Japanese stock markets in recent years. However, the cyclical nature of all financial markets suggests that even Japan will pull out of its lengthy slump sometime. The gamble (albeit a small one) is whether it will happen over the next three years and nine months.

Anyone interested in this tracker, which like all the others is subject to 27 per cent tax on profits and cannot be encashed early (or guarantees are put at risk), should contact National Deposit Brokers at (01) 2989211.