How does the XXXX (insert name) tracker bond work?
This section must include:
- the name and address of the product producer(s);
- a brief description of the benefits promised by the tracker bond to the consumer, including the promised payment which applies. The compound annual rate equivalent of the promised payment, related to the total investment amount, must be shown;
- if there is a risk that the consumer may lose some or all of the money invested, a statement of this risk;
- if there is a risk that the consumer will not achieve the estimated or anticipated return on his or her investment, a statement of this risk;
- if averaging and/or any lock-in provisions can impact negatively on the promised benefits, as compared with an identical investment without such benefits, the way in which such an averaging or lock-in provision can lead to reduced return on his or her investment (which must be disclosed prominently);
- whether or not the tracker bond will benefit from dividends payable on the un