Tracker bonds

[oaktree1234]

I read in the newspaper yesterday that tracker bonds have become very popular. Well I would like to warn you that there is a real possibility of losing at least 10% of your investment. I have just had letter from BCP Asset Management outlining my returns which shows €10.000 loss after 31/2 years. Just think what that adds up to. If I had invested in a bank deposit my money would have been safe and I would have had a decent return.

 

[marksa]

I read in the newspaper yesterday that tracker bonds have become very popular. Well I would like to warn you that there is a real possibility of losing at least 10% of your investment. I have just had letter from BCP Asset Management outlining my returns which shows €10.000 loss after 31/2 years. Just think what that adds up to. If I had invested in a bank deposit my money would have been safe and I would have had a decent return.

well you must have gone in with a risk appetite, where you were willing to take potential losses as a downside against the potential for profits. Anyone buying a non-capital guaranteed product will fit into bank/fund manager risk matrices as high risk tolerance.

Tracker bonds may have become popular, but you will find that most are capital guaranteed, with limited upside potential outside of the embedded term funding premium being paid by the bank providing the capital guarantee.

 

[Brendan Burgess]

I read in the newspaper yesterday that tracker bonds have become very popular. Well I would like to warn you that there is a real possibility of losing at least 10% of your investment. I have just had letter from BCP Asset Management outlining my returns which shows €10.000 loss after 31/2 years. Just think what that adds up to. If I had invested in a bank deposit my money would have been safe and I would have had a decent return.

Hi oaktree

You might keep an eye out on the BCP brochures and advertising to see if your experience is in keeping with their summaries of the previous performance on these bonds.

Brendan