The Global Active Bond 3
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Brendan Burgess
Founder
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It's a tracker bond. It translates into plain English as follows
"We are Wealth Options
Give us your money.
We will put a lump of it in a simple deposit account with Bank of ireland who will give it back to you in 6 years time. Of course, you could do this yourself, but you couldn't be bothered.
We will take a big lump of it for the big shiny brochure , the shiny ads, and the shiny mercs we drive around in.
We make so much money out of it, that if you go through a broker we can pay him a big lump of it as well for his shiny suit and shiny merc.
We will put whatever is left after the deposit account, the broker commission, and our profit on a highly speculatve bet on something called the "Ethna-Aktiv Fund" which is a name our market research told us would really impress gullible people.
Sometimes this bet pays off and we will give you a small return on your money. Most of the time it won't. But so what, aren't Bank of ireland going to give you your money back after 6 years, so you can't lose
Suckers who have bought this tracker bond have also bought the Ulster Bank Premier Brands Split Return Bond and Greenman Investments "
http://www.askaboutmoney.com/showthread.php?t=20917
"We are Wealth Options
Give us your money.
We will put a lump of it in a simple deposit account with Bank of ireland who will give it back to you in 6 years time. Of course, you could do this yourself, but you couldn't be bothered.
We will take a big lump of it for the big shiny brochure , the shiny ads, and the shiny mercs we drive around in.
We make so much money out of it, that if you go through a broker we can pay him a big lump of it as well for his shiny suit and shiny merc.
We will put whatever is left after the deposit account, the broker commission, and our profit on a highly speculatve bet on something called the "Ethna-Aktiv Fund" which is a name our market research told us would really impress gullible people.
Sometimes this bet pays off and we will give you a small return on your money. Most of the time it won't. But so what, aren't Bank of ireland going to give you your money back after 6 years, so you can't lose
Suckers who have bought this tracker bond have also bought the Ulster Bank Premier Brands Split Return Bond and Greenman Investments "
http://www.askaboutmoney.com/showthread.php?t=20917
Steven Barrett
Registered User
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- 5,330
Well put Brendan.
Your money is split into 3.
1. Fees - paid to the product producer and the broker selling it.
2. Deposit - most of your money is placed in a long term fixed rate deposit account.
3. A call option. If what they are saying they will invest in does better at the end of 6 years than it is today, they exercise the option with your recently matured deposit account. If it doesn't, they don't exercise it and you get the deposit fund back.
Always remember, to get returns above deposit rates, you have to take some risk. These products say they can get you equity based returns with no risk. There's a catch there somewhere.
If you are willing to put your money away for 6 years, you are better off investing in a diversified portfolio of assets. The chances are you will better than a structured bond and you are not locked in for 6 years.
Steven
www.bluewaterfp.ie
Your money is split into 3.
1. Fees - paid to the product producer and the broker selling it.
2. Deposit - most of your money is placed in a long term fixed rate deposit account.
3. A call option. If what they are saying they will invest in does better at the end of 6 years than it is today, they exercise the option with your recently matured deposit account. If it doesn't, they don't exercise it and you get the deposit fund back.
Always remember, to get returns above deposit rates, you have to take some risk. These products say they can get you equity based returns with no risk. There's a catch there somewhere.
If you are willing to put your money away for 6 years, you are better off investing in a diversified portfolio of assets. The chances are you will better than a structured bond and you are not locked in for 6 years.
Steven
www.bluewaterfp.ie