First Active has introduced a second secure investment bond that tracks market sectors.
The Secure Sector Bond Series 2 tracks five different sectors in the European stock market — banking, healthcare, industrial goods, technology and utilities — over an five-year investment period.
The bond uses a "lock-the-best" feature, where the best-performing sector at each anniversary has its performance "locked-in" on that date.
The final return on the investment is the average of the locked-in values and the investor will participate in 80 per cent of that average.
According to First Active head of marketing and e-business Mr Aidan Magennis, the bond is designed to hold the value of the best-performing sector while allowing other sectors to grow.
"The Secure Sector Bond combines capital security with an innovative strategy designed specifically to take advantage of opportunities for growth which are offered by equity markets," he said.
"Sectors tend to be cyclical and the lock-the-best feature is designed to hold the value of the best-performing sector whilst allowing time for the remaining sectors to grow.
"In addition, the sectors chosen are a mixture of high growth potential sectors and more stable defensive sectors, so ensuring a well-balanced investment."
The closing date is August 15th, 2001, and the minimum investment is £3,000