Guaranteed Investment Bonds

cepheus

meester wrote: »

Of course, even if it falls to 3000, if it recovers back over 6056 at any year-end (and that's a big ask really), we still get our money plus 16% p/a simple interest.

Meester I didn't realise we get the 16% p/a as well if the 50% criteria is triggered and the Index finishes above 6056. Thought it simply defaulted to a tracker irrespective of its final value. It's not clear from the brochure. Where does it say this?

I have the brochure pdf but can't find how to attach a file on this board only links.

meester

cepheus wrote: »

Meester I didn't realise we get the 16% p/a as well if the 50% criteria is triggered and the Index finishes above 6056. Thought it simply defaulted to a tracker irrespective of its final value. It's not clear from the brochure. Where does it say this?

I have the brochure pdf but can't find how to attach a file on this board only links.

It seems quite clear to me.
Link:
http://www.premierassetmanagement.co.uk/Library/PLE/Brochures/PLE37Brochure.pdf


See the flowchart on page 2 for instance:

Year 1 – is the Closing Value of the Index equal to, or greater
than, the Start Value?

If No:

Year 2 – is the Closing Value of the Index equal to, or greater
than, the Start Value?

If No:

Year 3 – is the Closing Value of the Index equal to, or greater
than, the Start Value?

If No:

Year 4 – is the Closing Value of the Index equal to, or greater
than, the Start Value?

If No:

Year 5 – is the Closing Value of the Index equal to, or greater
than, the Start Value?

If No:

Year 6 – is the Closing Value of the Index equal to, or greater
than, the Start Value?

If No:

Did the Index remain above 50% of the Start Value
throughout the life of the Plan?

If Yes:

Full return of net investment

If No:

If, at any time during the life of the Plan, the Index has fallen below the Start Value by 50% or more, then you will lose 1% of your net investment for each 1% that the Final Value is below the Start Value

See also page 5:

Where the value of the FTSE 100™ Index has fallen by 50% or more of the Start Value at any point during the life of the Plan and it has not recovered on the last day of the Plan’s life to the Start Level or above, then investors will not receive back the full amount invested. In this scenario, investors will lose 1% of their net investment for each percent the Final Value, on the sixth anniversary, is below the Start Value. So, for example, if the Final Value is 12% below the Start Value, then investors will lose 12% of their net investment. Taking the example in (a) above, you will lose 12% of £9,700 and you would get £8,536 back. Investors need to be aware that where the 50% downside protection has been breached, losses incurred are the same as being invested directly in the FTSE 100™ Index.

cepheus

Yes you are probably correct having read it again. It would have been clearer to me if they had given an example where the 50% was breached and the index finished above the start level. Thanks

thelawnet

caliston wrote: »

Today's closing price: 6056.5

484 points to go.....

cepheus

Just a reminder. Is the kick out criteria for this growth bond >6056.5 on April 18th? I'm jumping the gun a bit but it finished 6091 today, so we are definitely within the range.

cepheus

I've just had a letter from Premier to confirm the possibility of the Bond maturing with 48% growth on the 18th April if the FTSE100 is above the 6056.5 level on that date. I have sent out the ISA transfer instruction in case this happens, otherwise it will carry on.

cepheus

Oh well that a no go for another year! Not too bothered providing it hits the target by 2014!

dunstonh

cepheus wrote: »

Oh well that a no go for another year! Not too bothered providing it hits the target by 2014!

That was very close though.

Still, if it hits it next year its another 16% added.

thelawnet

Fingers crossed for this year, eh chaps?

darren72

Fingers crossed - We can only hope - Currently at 5897, so not too far off.