Bank of Scotland International has brought out a new version of a five-year sterling-denominated structured product that aims to give investors exposure to the FTSE 100 index, while protecting their original deposit.
The BoSI’s new Portfolio Plus Issue Two is the latest in a range of such products to be brought to market, as financial institutions seek to accommodate investors who have become wary of other ways of investing in equities, such as directly or through funds.
BoSI’s sibling in the Lloyd’s Banking Group, Halifax International, is offering its own Portfolio Plus Issue Two, but with a lower minimum investment level of £5,000, compared to the Bank of Scotland Internataional’s £20,000 minimum investment.
An update of its Portfolio Plus Issue One, unveiled in February, the BoSI’s Portfolio Plus Issue Two offers a potential return each year for the five-year term of 8%, subject to the performance of the FTSE 100 index as measured at closing between 26 May and 26 June of each subsequent year, according to BoSI.
The closing date for applications is 23 June, and the start date is three days after that.
Each year, any return is automatically paid into a Bank of Scotland International Matured Funds Account, which permits investors to access their funds. A BoSI spokeswoman said investors appeared to like this feature when it was offered in Portfolio Plus Issue One, because it meant that "they were potentially receiving a good return each year as opposed to waiting until maturity".
The second time around, in response to investor demand, the bank is lengthening the term in order to be able to offer a higher potential return, she added.
Additional deposits, part withdrawals and early closures are not allowed under the plan.
Bank of Scotland International is based on Jersey, with a branch on the Isle of Man. It is a part of the Lloyds Banking Group. Further information on the product is on the bank’s website, www.bankofscotlandinternational.com.
Information on the Halifax International’s Portfolio Plus Issue Two is at www.halifax-international.com.
