SecureAdvantage 2 or Similar, where to Invest E40,000?

I have 40,000 Euro to Invest and want the the best possible return over around 4-6 years with no risk to my Capital. This SecureAdvantage 2 product by BoI looks pretty good, perhaps too good, my money would be tied in for 6 years. Has anyone else looked into it or offer advice? OR could anyone advise where else to put 40,000 Euro? Thank You!

This is an interesting product of the Tracker genre. Search AAM for general debate on Trackers.

On this "new age" version, I comment as follows:

Tracker participations (i.e. exposure to the stockmarkets) have fallen substantially because of two factors: low interest rates and extremely high stockmarket volatility.

This product addresses the low interest problem by using 4.59% p.a. to secure the capital guarantee, clearly you are getting some benefit from BoI's current high funding costs.

The product does not address current high volatility - you only start with 41% participation but it has an automatic facility for increasing exposure if volatility falls back to more normal levels. This differentiates it from conventional Trackers where you are locked into a low participation rate determined by today's historically unprecedented conditions.

The target volatility of 13% is lowish compared to other versions - thus reducing your participation (see the formula in brochure). The charges of 8.43% are rather high for Trackers - but this is amply compensated by the high interest rate on the guaranteed part.

The 3 year exit option at 90% (or current value if higher) is an interesting feature.

Overall, 8 out of 10 (2 points deducted for the low volatility target), and I am not aware of any better product which gives you what you desire which is capital security with some exposure to markets.

The brochure is well written. Read it from beginning to end, especially the back part. Everything is explained but the underlying engineering is a tad complicated, and if you need any specific clarifications, post your query back here.

Disclosure: no connection with BoI

Thank you Duke of Marmalade for your very helpful input, I have trawlled the web for similar products and found none, same as anyone else I want the best for my money with little or no risk, at this time and taking onboard your valued comments this may be the one for me, I still have a little time to look around as Invetment date isnt until 29th May.

You do also have the option of putting an additional 1/3 of the initial amount invested into the tracker part into a fixed term deposit for 12 months at 5.5% which seems like a good rate at present. In your case €30k into Secure Advantage €10k on above deposit rate..
It's a fairly long term, though the early exit is apealing as an emergency escape if needed or if the product had done very well within the 3 years..
I don't see much better out there but just make sure you weigh up your options and are prepared to invest for the long term of course and are happy with the terms yourself..

Hi

I am currently looking at a product like this myself - I found with BCP Asset management (bcp.ie) 2 products(bcp double growth and bcp quadruple growth) that may suit - each are 3.5 years term but 25% of the sum invested in at 5% for 12 months and returned - the rest is in equities.

Double growth guarantees return of capital with return capped at 35%

W Tell

johnnygman said:

It's a fairly long term, though the early exit is apealing as an emergency escape if needed or if the product had done very well within the 3 years..

Click to expand...

And if it's doing very badly after 3 years, it's a no brainer to take the 90% parachute.

WT stick to shooting apples Search AAM for the real low down on those BCP products.

Secure Plus is more of a conventional style Tracker. The participation is locked in at 60% s.t 33% cap. The Secure Advantage is variable participation (currently 41%) and no cap. There is an argument that in current very high volatility markets, the latter may prove better value. Also the presence of commodities in the Secure Plus basket dampens its upside potential whereas the Secure Advantage basket is a pure equity play.

I couldn't access the Secure Plus brochure to see what its underlying interest rate and margin is.

BCP products are a completely different type of Tracker animal. Go to "search" in the above Menu Bar click the dropdown and type in "BCP split deposit" and click "go".