# Ulster bank double reward bond



## messyleo (9 May 2007)

Got a leaflet about [broken link removed] 
It appears 20% of your money is put in a deposit ac with a 14% return in year one, after the first year I think you can access this money. The other 80% is tied in for 5 and a half years in a range of index tracker type funds spanning 4 indices. I can't find info of charges etc anywhere. Does anyone have any more info?


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## verbatim (10 May 2007)

The charge in this is built in to the bond. They don't explicitly ask you for a fee, and you don't explicitly pay one. When you invest in this bond Ulster Bank make an equivalent investment with a specialist investment bank, but where you deposited 10,000 euros, Ulster only has to deposit say 9,500 euros. This leaves Ulster with a 500 euro profit.

Put simply, you've bought a product for 10,000 euros which Ulster can buy for a cheaper price, and that's where they make their money.


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## z108 (13 May 2007)

why cant the ordinary consumer buy this product themselves with the investment bank directly and save 500 euro ?


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## monkeyboy (13 May 2007)

Great incentive to take any money I have from an existing similar managed fund with BOI then.


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## CCOVICH (13 May 2007)

sign said:


> why cant the ordinary consumer buy this product themselves with the investment bank directly and save 500 euro ?



Because the investment bank will only sell it in hundreds of thousands or millions etc.


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## dotsman (16 May 2007)

I'm trying to find out more about this online as it sounds interesting, but pretty much can only find [broken link removed]

I find it very suspicious that they mention nothing about the terms and conditions, fees, duration etc. on the main page.

Delve deeper into the website and I discover that the equities-based bond doesn't mature until 18th December 2012. No withdrawals can be made. Still no mention of fees or terms and conditions etc.


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## messyleo (16 May 2007)

the lack on info conditions is v annoying alright. I contacted UB last week to ask for a brochure to be sent and it never arrived! All i wanted to know were when you could access the cash portion, was there an annual charge, how much participation in growth of the indices etc. You'd swear they didn't want my business!


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## orlan65 (18 May 2007)

was in aib and they are doing the same as ulster bank.  i am calling in again in a few weeks to talk to someone about it. will let you know what information i get on it.


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## Jake2000 (22 May 2007)

I got a brochure on this yesterday, and would be happy to post the key points here, however it would be tomorrow or this evening at the earliest because I left it at home.

If my memory serves me correctly there are no charges, fees etc. as it is a tracker bond, however the main limitation is that you only receive 70% (I need to check this) of the growth, which IMHO does not make this good value. If no one clarifies the details in the meantime I'll post them later.

J2K


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## messyleo (22 May 2007)

thanks for that jake - the 70% info is very helpful - not too impressed with it, i can see why they keep it under wraps!


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## Jake2000 (22 May 2007)

The following are the key points from the Ulster Bank Double Reward Bond brochure as promised:

- minimum investment is €3,500
- the bond is 100% secure
- 20% of the investment is put into a fixed rate deposit account at 14% gross AER for one year
- this amount matures after 12 months and is paid out at that stage
- the remaining 80% is invested for a 5 1/2 yr term in a four indices (ISEQ, FTSE, Eurostoxx 50, Nikkei 225)
- the returns of this portion of the investment are based on 70% of the average combined performance of these indices
- the bond commences on 18.06.07 and matures on 18.12.12
- closing date for participation is the 31.05.07

While the interest paid on the 20% on deposit is an impressive 14% gross, this is only available for 1 year. Meanwhile on the remaining 80% returns are limited to 70% of the performance of the indices which in my opinion is a major limitation, and (as they say on Dragon's Den) the reason why I'm out!!

Hope this enlightens

J2K


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## alpina (22 May 2007)

Many thanks Jake for posting this, clarifies it for me....


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