Irish Life & Permanent has launched Protected Advantage Bond, consisting of three options with different subscription periods.
With risky assets linked to a hybrid basket consisting of iBoxx Eurozone Total Return index (40%), S&P500 (24%), DJEurostoxx50 (24%), FTSE100 (6%) and Topix (6%), the CPPI strategy pays the greater of a capital return of 100% and 80% of the highest level ever reached by the portfolio, observed quarterly throughout. The initial equity allocation is set at 70% and is subject to a minimum allocation of 10% and a maximum of 100%.
The product is being sold as an investment that gives investors control over their investment via capital protection and uncapped returns. Capital protection is provided via the purchase of an Irish government bond; the derivative counterparty for the plan is JPMorgan Chase.
Protected Advantage Bond Fund 1 is open for subscription between 21 October and 20 November, Fund 2 from 23 November until 24 December and Fund 3 from 4 January to 15 February next year.
There is an annual management charge of 1.95%.
These products are available now in Recent Additions (Ireland).