Secure Euro Bond 3

Acorn life is pleased to launch one of Ireland’s most innovative tracker products, which provides the advantages of investment in equities but without the associated downside risks.

The Acorn Life Secure Euro Bond 3 is an innovative investment bond with a term of 5 years, offering 100% capital protection while allowing you to gain exposure to 70% of the performance of the Euro Stoxx 50 index - Europe's leading index for the Eurozone. The fund allows you to gain from the potential growth in the Euro Stoxx 50 index when markets rise while also protecting you from significant losses when markets are down.

 The fund also aims to protect you from falls in the value of the Euro Stoxx 50 index towards the end of your investment. This is done by averaging the index values from each of the last 12 months which helps cushion any highs or lows experienced. This can reduce the effect of any falls in the value of the index but can also limit your investment growth in the last year of the term.

Key Features

• 100% Capital Protection at the end of a 5 year investment period.

• At maturity you receive the greater of:

 - 100% of the capital before the deduction of the 1% government levy less any tax due at maturity and

 - 100% of the capital after deduction of the 1% government levy plus 70% of the growth, if any, in the Euro Stoxx 50. Growth is calculated based on the amount invested after the deduction of the 1% government levy and will be less any tax due at maturity.The maturity value is 100% of the capital plus 70% of the growth, if any, in the Euro Stoxx 50.

• Protection from large fluctuations in the last year of the term by averaging the index values.

• Fixed investment term of 5 years from 13th February 2012. The bond is only designed for investors who do not intend on accessing the bond during this term.

• Minimum investment is €10,000.

• Full or partial encashments are not allowed during the fixed investment term of 5 years..

• Closing date for receipt of applications is 13th February 2012, or earlier if fully subscribed.

Euro Stoxx 50

The Euro Stoxx 50 index is Europe’s leading index for the Eurozone. This index covers large, high-profile companies which are leaders in their fi eld in the Eurozone. The index tracks 50 stocks from 12 Eurozone countries: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain (Source: Eurostoxx 50 Factsheet, 31/10/2011).

Sector & Country Weighting

 

Is This The Investment For You?

This Bond is suitable for investors who require access to equity markets whilst maintaining capital protection at maturity. The Bond is not suitable for investors who require regular income or access to their capital before maturity. The Bond is suitable as a capital growth investment. Any returns will depend on the performance of the underlying index. Your money is not directly invested in the shares of the companies in the index and, therefore, you will not benefi t from any dividends paid by the companies. Your money tracks the performance of the companies in the index and you will benefit from capital gains made by those companies’ shares. For further information, please refer to the Important Information document.

Capital Protection

This Product is capital protected only at its scheduled maturity. If the Product redeems before its scheduled maturity, it may return less than the capital protected amount. The capital protection is provided to Acorn Life Limited by Barclays Bank PLC (“Barclays”) and is based on the amount invested before the 1% government levy has been deducted. In the event that Barclays is unable to meet its obligations to Acorn Life, you may lose some or all of the amount invested and/or any return on your investment at the maturity dates. Barclays is authorised and regulated by the UK Financial Services Authority and has ratings of A+ from Standard & Poor’s and Aa3 from Moody’s (as at 30 November 2011).

The Product is not sponsored, endorsed or promoted by Barclays. Barclays will make payments only to Acorn Life Limited and will have no contract with or liability to any investor in the Product.

Past Performance of the Euro Stoxx 50

 

Important: Please note that the above are only brief summaries of the features of the Secure Euro Bond 3. Definitive terms are provided in the Important Information Document.

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