Because Investors' requirements are rarely the same.

The Guaranteed Global Growth Fund (June 2008 Series D) satisfies the needs of a wide range of investors from cautious investors, who wish to invest with the peace of mind of a 100% Capital Guarantee and who wish to enjoy in addition a level of stockmarket growth, through to more confident investors, who wish to access higher levels of potential stockmarket growth but who also want to invest with a known minimum future capital return.

Features

• A choice of capital guarantee levels from 85% to 110% of your original investment.
• Equity growth linked to the growth in the Stockmarkets of China, Japan and Hong Kong (averaged over the final 12 months).
• Unlimited upward only investment growth.
• 5 year investment period.
• 6%pa interest paid during the offer period.
• Minimum investment: £5,000
• Next Closing Date For Applications: Monday 16 June 2008

How The Fund Works

This Fund achieves investment growth through an underlying investment link to a Global Basket Index. The Index is specially created using published indices representing various global markets with specified weightings to movements in these indices. The Fund incorporates two guarantees and your Total Repayment is the sum of these two guarantees. The Capital Guarantee you select is applied to the full amount you invest at the start of the Investment Period. This is your Capital Guarantee Amount and represents your minimum Total Repayment. To the Capital Guarantee Amount is added the Equity Growth Amount. The Equity Growth Amount is the Equity Growth Percentage (shown in the table above) corresponding to the level of Capital Guarantee you select multiplied by the Index Growth, which is the growth in the Global Basket Index (the “Index”) averaged over the final year of the Investment Period, applied to the full amount you invest at the start of the Investment Period. Note that averaging the Index over the final year of the Investment Period may result in a lower return to you if the Index has risen sharply at the end of the Investment Period but provides protection against sharp falls at the end of the Investment Period.

Worked Example

If a Capital Guarantee of 80% is selected and the average growth in the Index over the Investment Period is 60%, the Equity Growth would be 60% x 120% which equals 72%. Add to this the 80% Capital Guarantee and the Total Repayment in this example is 152%, so the investor will receive back 152% of the amount invested. In this example the high growth reward of stockmarket linked investment is achieved whilst at the same time capital protection is provided over the Investment Period.

The Effect Of Index Movements On The Investment Return

The chart below shows the range of Total Repayments for a five year Investment Period where the Index Growth outcome is between -20% and +100%. The range of Index Growth outcomes shown is for the purpose of illustration only and the Index may fall or rise by more than the amounts shown.

The chart shows that:

• The minimum Total Repayment is the Capital Guarantee Amount selected.
• The lower the Capital Guarantee selected the higher the total potential return.
• At all levels of Capital Guarantee selected there is no cap or upper limit on the potential returns.

Further Information

• The Fund Description document for the five year Guaranteed Global Growth Fund - June 2008 Series D (Pdf 54Kb) contains further information about the terms of the fund.
• The Guaranteed Growth Funds brochure (Pdf 368Kb) contains further information about how the fund works.