Anglo's "Protected investor account"

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BobMax

Registered User
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Has anybody looked into this new Anglo Irish Bank Investment?
Min €30,000 - Full Capital Protection, No Charges.
Split between - One Third Deposit @8% for one year - Two Thirds Commodities, Foreign Exchange and Property for 3 Years 11 Months?
 
It's a tracker bond and there are charges. They're just implicit in the return offered. Whether or not this product is suitable for you depends on what you're looking for, from an investment.
 
On principle, you should avoid a product like this which confuses most investors.

The headline rate is 8% - Wow!

But that applies to 1/3rd of the amount for one year.

2/3rds goes into a vague fund for 4 years.

So only 11% of your fund attracts the 8%.

there is absolutely no need to complicate products like this, except to confuse people.

brendan
 
Yeah - read the key post(s?) about tracker bonds and why they might not be a great idea in many (most?) cases.
 
It's a tracker bond and there are charges. They're just implicit in the return offered. Whether or not this product is suitable for you depends on what you're looking for, from an investment.
What are the Charges?- They have informed me No Charges.
What is anybody Looking For from an Investment? - The Best Possible Return for their Money.
I never said I was investing - I only asked what peoples reaction, to it, was?
 
Well then you should now have an idea of how charges are built into such products? As www.itsyourmoney.ie says:

Tracker bond charges are built into the product at the start, so they are reflected in the promised minimum return (if any) and the maximum growth allowed on the bond. No further charges apply during the term of the investment.
Click to expand...
 
BobMax said:
What are the Charges?- They have informed me No Charges.
Click to expand...

If there are no charges, are Anglo Irish Bank therefore administering, marketing and selling it for free? Seems terribly charitable of them.

BobMax said:
What is anybody Looking For from an Investment? - The Best Possible Return for their Money.
Click to expand...

What a very defensive answer. I wonder why.

You know what I mean. There is no single investment that is going to be the best for everyone. If there was, I would be selling my house to try to invest in it. In the absence of a crystal ball, investments need to be evaluated in terms of level of risk, volatility, term, requirement for income, access etc.
 
BobMax said:
What are the Charges?- They have informed me No Charges.
Click to expand...

Anglo Irish Bank selling you a product with no charges at all!! Not a very sensible business proposition for them!! You might ask them how they intend to make some money from it. Pigs will fly before you get something for nothing from Anglo Irish Bank (or any other bank for that matter)... There are clearly charges somewhere along the way, probably hidden so you can't work them out.

If someone from Anglo told you that there are no charges then they don't even understand the first thing about their business. That's worrying indeed.
 
Thank's all for comments on anglo protected bond,good to know there is advice available for such questions for novice investors.
 
Brendan said:
On principle, you should avoid a product like this which confuses most investors.

The headline rate is 8% - Wow!

But that applies to 1/3rd of the amount for one year.

2/3rds goes into a vague fund for 4 years.

So only 11% of your fund attracts the 8%.

there is absolutely no need to complicate products like this, except to confuse people.

brendan
Click to expand...

I have read the posts on tracker bonds and they are useful. However, having loooked at this product there are certain things that are clear

The brochure is clear about the 1/3 split for one year with the balance being invested over the longer period.
The interest rate for the year is excellent at 8%.

The decision to enter into this product boils down to whether you are happy with the majority of your investment tracking the BNP fund. The link to the BNP Fund is in the brochure so I do not think it is vague as to what you are investing in.

There is no cap on return with this product unlike other similar products.

The capital protection is also there. I know that you would have lost money in real terms through inflation and lost interest in the intervening period but this has attractions to some peole in these turbulant times for equities and with the economic news gloomy.

If you had a planned expense in 4years time and had some spare cash to invest in the intervening period then I personally see some attraction in it.

I accept the points made in the key post about tracker bonds but this product is not without merit.
 
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