BCP DEPOSIT OUTPERFORMANCE BOND

Transcription

1 BCP DEPOSIT AN INNOVATIVE DEPOSIT BASED SOLUTION DESIGNED TO GENERATE POTENTIAL RETURNS IN EXCESS OF CURRENTLY LOW BANK DEPOSIT INTEREST RATES. THE BOND WILL TRACK A LEADING MULTI-ASSET FUND WITH A SUCCESSFUL TRACK RECORD. Term 4 years 6 moths 100% Capital Security provided at maturity by Bak of Irelad Ehaced Terms Miimum Retur of 1.5% Deposit based product Potetial additioal iterest payable at maturity Potetial for returs i excess of curret deposit rates Closig Date 21st August 2015 Miimum Ivestmet 220,000 CAPITAL SECURITY PROVIDED BY BANK OF IRELAND BCP SERVING INVESTORS FOR OVER 45 YEARS ivest@bcp.ie

2 BCP DEPOSIT This iovative bod from BCP is desiged to offer ivestors access to a term-deposit structure that provides a potetial rate of iterest above that beig offered by comparable low-risk bak deposit ad A Post products i the curret market. BCP offer a rage of capital secure ivestmet solutios i the Irish market o a cosistet basis. The typical BCP Bod is desiged to provide secure access to the performace of leadig global fud maagers with strog participatio rates ad the potetial to match, or exceed, the returs beig provided by comparable ope-ed ivestmet fuds. BCP curretly have a full rage of such bods available i the market coverig ivestmets across multiple assets classes, fud maagers, ivestmet styles ad potetial performace drivers. The BCP Deposit Outperformace Bod has bee desiged with a differet remit. Usig the same product costructio process, the Bod utilises oe of the leadig fuds idetified by the BCP Ivestmet Committee, the Etha Aktiv Fud, ad combies the performace of the fud with a shorter ivestmet term (4 years ad 6 moths) ad a lower participatio rate (50%) i order to provide ivestors with a product that has the ability to outperform deposit rates withi a 100% capital secure solutio. The objective of the Bod is to geerate returs of 3%+ per aum by trackig the performace of a leadig multi-asset fud that has geerated 8% CAR sice 2002, with a 50% participatio rate. SUMMARY OF THE BCP DEPOSIT : AVAILABLE TO PENSION PLATFORM INVESTORS ONLY 4 year 6 moth Term 50% Participatio i the performace of the Etha Aktiv Fud PLUS Fixed bous retur of 1.5% at maturity Term deposit structure with iterest payable at maturity Retur objective of 3%+ per aum Uderlyig Fud has successful track record Fud has geerated 8% CAR with relatively low volatility CURRENT DEPOSIT RATE ENVIRONMENT For a umber of factors the rates of iterest beig offered by traditioal deposit istitutios such as the Irish baks ad the A Post are at historically low levels. The volume of moey that has bee made available to the baks to shore up balace sheets ad protect agaist a repeat of the fiacial crisis of 2008, as well as a apparet lack of viable ledig opportuities, has led to a situatio where most Irish baks have cash reserves i excess of their historical averages, ad therefore do ot eed to offer high rates of iterest to attract further deposits. With the oset of Quatitative Easig i the Eurozoe ad the cotiued focus o the stregth of bak balaces sheets it is hard to see a ed to the era of low deposit rates i the short term. As you ca see i the followig table, low risk ivestors are ot beig offered rates of iterest comparable with historical averages or reflective of the demad for moderate, low-risk returs. GUIDE TO CURRENT IRISH DEPOSIT RATES: Deposit Provider Iterest Rate Term Category of Accout Bak of Irelad 1.15% AER 4 years Fixed Term Deposit A Post 0.99% AER* 4 years Natioal Solidarity Bod A Post 1.24% AER* 5.5 years Savigs Certificate Ulster Bak 1.10% AER 3 years Fixed Term Deposit RaboDirect 0.40% AER 5 years Fixed Term Deposit Permaet TSB 1.20% AER 5 years Fixed Term Deposit KBC Bak 1.10% AER 4 years Fixed Term Deposit AIB 0.7% AER 2 years Fixed Term Deposit Source: ad as of Jue 19th Qualifyig terms ad coditios apply to each of the above accouts. *Not subject to tax.

3 BCP DEPOSIT PAST PERFORMANCE OF UNDERLYING FUND: Category of 4 year 6 moth Performace Periods AVAILABLE TO PENSION PLATFORM INVESTORS ONLY Etha Aktiv Performace (per aum) Assumed Participatio Rate Illustratio of Performace multiplied by Participatio Average Retur 7.7% pa 50% 4.1% Best Retur 15.8% pa 50% 8.9% Worst Retur 2.3% pa 50% 1.1% Most Recet Retur 5.4% pa 50% 2.8% PERFORMANCE OF FUND SINCE LAUNCH - CAR 8% 250 Etha Aktiv Fud Global Bods Global Equites MAY 2002 MAY 2003 MAY 2004 MAY 2005 MAY 2006 MAY 2007 MAY 2008 MAY 2009 MAY 2010 MAY 2011 MAY 2012 MAY 2013 MAY 2014 MAY 2015 Source: Bloomberg ad Etheea. Performace figures are et of fees ad gross of taxatio. Figures are quoted from February 18th 2002 to May 31st The MSCI World Bloomberg code is MXWO ad the JPM Global Aggregate Bod Bloomberg code is JGAGGUSD. The fud performace show reflects the distributig share class, ETHAKTE LX, of the Etha-AKTIV Fud. The BCP Bod will track the accumulatig share class of the same Fud, ETAKTVE LX. The accumulatig share class was lauched i 2009, i order to provide a log term picture of the performace we used the distributig share class i the graph which was lauched i Please ote that the past performace of the two share classes has bee very similar. PERFORMANCE DATES Average 4 year 6 moth retur 39.7% Best 4 year 6 moth retur 93.2% Worst 4 year 6 moth retur 10.5% Recet 4 year 6 moth retur 26.9% PERFORMANCE FEES If at the ed of the 4 year 6 moth term the Gross Retur of the Bod is 14% or greater, the a Performace Fee of 1% will be deducted from the Gross Retur ad paid to BCP. The Performace Fee is paid i additio to the iitial fee paid to BCP, as described i the Key Features o page 4. BCP Wier of the Property Maager of the Year Award BCP Wier of the Specialist Life Service Provider Award Irish Pesios AWARDS 2014 Europea Pesios Awards Irelad 2014 IBA 24th & 25th Isurace Service Awards

4 REVIEW YOUR PORTFOLIO ONLINE crm.bcp.ie BCP DEPOSIT Your etire ivestmet is allocated to a 4 year 6 moth BCP Deposit Outperformace Bod. At the ed of the Term, the Bod will pay 100% of the capital ivested plus a further 1.5% fixed retur, alog with 50% of the Performace of the Fud over the 4 year 6 moth Term. For example, if the Performace of the Fud is 40% over the term of the Bod, the retur to ivestors will be 101.5% of the capital ivested plus 20% (40% x 50%) givig a Gross Retur of 21.5%. As the 21.5% retur i this case is above the 14% Performace Fee hurdle rate for this Bod, a 1% Performace Fee will be paid to BCP with a retur of 20.5% paid to ivestors. This is equivalet to 4.6% per aum (CAR 4.2%). Eve if the Performace of the Fud is egative over the term of the Bod, 101.5% of the capital ivested will be retured. The figures above are provided oly to illustrate how the Bod works; they should ot be take as a idicatio of potetial returs. The retur to you will deped o the actual performace of the Fud which caot be predicted i advace. There is o guaratee that ay iterest above the miimum retur of 1.5% will be payable at the ed of the ivestmet term. BACKGROUND ON THE FUND MANAGER ETHENEA Etheea is a idepedet ivestmet compay headquartered i Switzerlad maagig over c13b i assets for Europea ivestors. Etheea was established i 2002 with the lauch of their flagship multi-asset fud Etha-AKTIV. The Etheea ivestmet team is a highly experieced group of portfolio maagers ad aalysts whose guidig ivestmet priciples iclude: A focus o capital preservatio ad positive ivestmet returs Miimisig risk through a balaced ivestmet strategy Portfolio diversificatio across sectors ad asset classes OVERVIEW OF THE FUND ETHNA-AKTIV Reducig portfolio volatility ad ucertaity Accuracy of asset allocatio decisios are key drivers of performace The Etha-AKTIV Fud is a multi-asset fud ivestig i global equities, global bods ad cash. The Fud curretly has approximately c12b i assets uder maagemet ad was lauched i 2002 meaig the ivestmet team have successfully guided the Fud s ivestors through a variety of market ad ecoomic coditios. The primary objective of the Fud is to geerate a positive retur i every market situatio. The Fud has a target retur of 5%-10% with volatility below 6%. Depedig o the market eviromet, the equity allocatio of the Fud will be actively adjusted betwee 0%-49%. The ivestmet team employ a fudametal approach to ivestig ad have desiged a Fud for ivestors that appreciate stability, capital preservatio ad retur geeratio. To summarise: A log ruig fud with a successful retur ad low volatility history (5 year aualised volatility is 4.9%) Sice iceptio i 2002 the Fud has retured +175% (CAR 8%) The Fud ivests i global equities, bods ad cash The Fud has a target retur of 5%-10% per aum The Fud is aimig to preserve capital ad achieve log-term value The ivestmet strategy combies flexibility with balace The Fud ca use derivatives ad optios at its discretio for hedgig existig portfolio ivestmets ad as a tactical ivestmet tool i special market coditios. CAR is Compoud Aual Retur _V8

5 BCP DEPOSIT KEY FEATURES The product producer of the BCP Deposit Outperformace Bod is BCP Asset Maagemet Limited, 71 Upper Leeso Street, Dubli 4. HOW DOES THE BOND WORK? YOUR etire ivestmet is allocated to a BCP Deposit Outperformace Bod. At the ed of the term, the percetage performace (gai or loss) of the the Etha-AKTIV Fud is calculated. This performace if positive, will be multiplied by 50% ad added to the miimum retur of 1.5% to calculate the Gross Retur of the Bod. The Bod offers 100% capital security at maturity. SUITABILITY The Bod is ot suitable for ivestors who require regular icome or require access to their capital before maturity. The Bod is suitable oly as a capital growth ivestmet. The retur o the Bod will deped o the Performace of the Fud ad will oly be determied at the ed of the term. No withdrawals may be made before the maturity of the Bod o 28th February Your moey is ot ivested i the Fud, therefore, you do ot beefit from ay divideds distributed by the Fud but you will beefit from divideds ad icome eared withi the Fud durig the term of the Bod. I order to protect the performace of the Fud from volatility towards the ed of the term, the Fial Price will reflect the average Fud level o a mothly basis over the fial 12 moths of the term. The effect of averagig is to protect returs where performace is fallig but coversely it may restrict growth where performace is risig. A Performace Fee of 1% will be deducted if the Gross Retur of the Bod is 14% or higher at maturity. CAPITAL SECURITY Capital security is provided by Bak of Irelad. I the evet Bak of Irelad fails to meet its liabilities, youcouldlosesomeorallofyourmoey.yourivestmetishelditheameofyourpesioplatformprovider.asyourpesio platformprovideristhebeeficialoweroftheassets,itisimportattootethatthisivestmetisotcoveredbythedeposit Guaratee Scheme. WHERE DOES MY INVESTMENT IN THE BCP DEPOSIT OUTPERFORMANCE BOND GO? The paragraph below displays how the ivestmet is structured for a hypothetical 310,000 ivestor. The BCP Deposit Outperformace Bod provides 100% capital security by placig 93.84% or 39,384 of your ivestmet amout o deposit. This amout will grow to 100% or 310,000 by the ed of the 4 year 6 moth Term. This Bod offers a retur of 1.5% of your ivestmet amout PLUS 50% of the Performace of the Fud less ay Performace Fee. 4.3% or 3430 of your ivestmet amout will be used to purchase this retur. If the Performace of the Fud is egative at the ed of the 4 year 6 moth Term, you will receive 101.5% of your capital ivested. This paymet represets a 1.5% gai (CAR 0.3%) o your ivestmet over the period. BCP will receive a fee of 1.86% or 3186 for maufacturig, distributig ad admiisterig the Bod, equivalet to 0.41% per aum. As described previously o page 3, a Performace Fee of 1% will be paid to BCP i additio to the fees above if the Gross Retur of the Bod is 14% or more at maturity. DO I HAVE ACCESS TO MY INVESTMENT? No withdrawals may be made before the maturity of the Bod o 28th February You have the right to cacel your applicatio for the Bod withi two weeks of the date you sig it but o later tha the Closig Date. WHAT HAPPENS IF I DIE BEFORE THE BOND MATURES? Where a ivestmet is made o behalf of a self-directed or self-admiistered pesio pla, i the evet of death of a member prior to the expiry of the Term, the Bod may be redeemed at its realisable value as determied by BCP based o a calculatio by the Bak which may be more or less tha the capital ivested. The proceeds from such redemptio will be paid to the trustees of the pla, or the ivestig Life Compay as appropriate. Early redemptio fees may apply o ay early exit from this ivestmet. WHAT ABOUT TAX? This Bod is available to pesio platform ivestors oly. Pesio platform ivestors are curretly exempt from Deposit Iterest Retetio Tax. Ivestors should satisfy themselves i relatio to the Reveue reportig requiremets ad the implicatios of o-disclosure where required.

6 TERMS & CONDITIONS 1. DEFINITIONS 1.1 you/your/ivestor meas the customer(s) who is/are ivestig fuds i the BCP Deposit Outperformace Bod. 1.2 the Bod meas the BCP Deposit Outperformace Bod provided by BCP i accordace with these Terms ad Coditios. 1.3 the 4 year 6 moth Term, Term meas the duratio of the ivestmet which is placed i the 4 year 6 moth Bod commecig o 31st August 2015 ad maturig o 28th February Iterest meas the gross iterest calculated i accordace with Sectio 6 below. 1.5 the Bak meas The Goveror ad Compay of the Bak of Irelad ad its successors, assigs ad trasferees. 1.6 BCP meas BCP Asset Maagemet Limited ad its successors, assigs ad trasferees. 1.7 The Fud meas the Etheea - Etha-AKTIV (T). Bloomberg code ETAKTVE:LX. 1.8 Performace of the Fud is defied i 6.2 below. 1.9 Performace of the Bod is defied i 6.3 below Gross Retur of the Bod is defied i 6.4 below Performace Fee is defied i 6.5 below. 2. YOUR INVESTMENT 2.1 BCP will lodge your ivestmet i the Bod to a clearig accout at the Bak. The fuds will the be swept to a cliet asset accout with the Bak i the ame of BCP. You will receive a cofirmatio from the Bak of your ivestmet i the Bod. 2.2 Your moey is ot ivested i the Fud, therefore, you do ot beefit from ay divideds distributed by the Fud, but you will beefit from the divideds ad icome eared withi the Fud durig the term of the Bod. 2.3 All paymets from the Bod will be paid to the trustees of the pla, or the ivestig Life Compay, as appropriate to be added to your pesio beefits 3. AVAILABILITY 3.1 The closig date for applicatios is 21st August 2015, or earlier if fully subscribed (the Closig Date ). 3.2 The miimum ivestmet is 320, The Bod is available to idividuals who are aged 18 or over wishig to ivest their pesio fuds. 4. COOLING OFF PERIOD You have the right to cacel this cotract prior to the Closig Date of the Bod. If you wish to cacel, writte otice must be received by BC PAsset Maagemet Limited at 71 Upper Leeso Street, Dubli 4 withi two weeks of your applicatio but o later tha 26th August WITHDRAWALS 5.1 No withdrawals may be made from the Bod before the ed of the 4 year 6 moth Term. 5.2 Where a ivestmet is made o behalf of a self directed or self admiistered pesio pla, i the evet of death of a member prior to the expiry of the Term, the Bod may be redeemed, subject to the terms of the rules of the uderlyig scheme or policy, at its realisable value as determied by BCP ad the Bak which may be more or less tha the capital ivested. The proceeds from such redemptio will be paid to the trustees of the pla, or the ivestig Life Compay as appropriate. 5.3 Early redemptio fees may apply o ay early exit from this ivestmet. 6. INTEREST 6.1 The Iterest credited by the Bak to the 4 year 6 moth deposit o maturity is calculated as the Performace of the Bod less the Performace Fee, ad is calculated i accordace with 6.2, 6.3, 6.4 ad 6.5. This Iterest will be added to the capital secure amout to calculate the fial retur. 6.2 Performace of the Fud is calculated as (Fial Price Iitial Price) / Iitial Price where (1) the Iitial Price of the Fud is the closig level of the Fud o 28th August 2015 or the ext busiess day for the Fud; (2) the Fial Price is the simple average of the Fud values take at mothly itervals from ad icludig 28th February 2019 to ad icludig 28th February 2020 or the ext busiess day of the Fud. 6.3 Performace of the Bod is calculated as 1.5% PLUS (positive Performace of the Fud x Participatio) where Participatio is 50%. 6.4 Gross Retur of the Bod is calculated as (Performace of the Bod Capital at Risk) where Capital at Risk is 0%. 6.5 The Performace Fee is 1% where the Gross Retur at maturity for the Bod is 14% or higher. 6.6 If the Performace of the Fud is zero or egative at maturity, you will receive 101.5% of the capital ivested. 6.7 Should ay evet occur durig the 4 year 6 moth Term which i BCP s absolute discretio costitutes a substatial chage to the Fud, force majeure or hedgig disruptio, BCP shall be etitled to substitute the Fud with aother Fud, to uwid the Bod at the the curret market value or to susped operatios of the Bod durig ay period i which such evet cotiues ad thereafter util the ed of the 4 year 6 moth Term. O suspesio, the Bak shall arrage for the ivestmet accrued to be placed o deposit for the aforesaid period, o terms to be agreed betwee BCP ad the Bak at their absolute discretio. BCP will otify the ivestors of the occurrece of ay such evet i such maer as BCP deem appropriate. Neither BCP, the Bak, or their aget(s) shall be liable for ay loss howsoever suffered by the ivestor if there is ay total or partial failure of performace resultig from ay such evet or ay other causes beyod the cotrol of BCP, the Bak or their aget(s). 6.8 Should a adjustmet evet occur durig the 4 year 6 moth Term which affects the valuatio of the Fud, BCP shall be etitled, after cosultatio with the Bak ad at its absolute discretio, to adjust ay relevat terms of the Bod to preserve the ecoomic equivalet of your ivestmet prior to the occurrece of such evet. 6.9 No iterest will be paid to you i relatio to the period up to 31st August MATURITY BCP will cotact you before the Bod mature to advise of repaymet ad reivestmet opportuities available at that time. At maturity o 28th February 2020, BCP will istruct the Bak to electroically trasfer your capital sum ivested together with Iterest eared to your pesio platform provider. If for ay reaso Iterest o the Bod caot be determied by the maturity date, the Bak will pay the capital sum ivested ad Iterest, 2 busiess days after the Iterest ca be determied. 8. COMPLAINTS Ay complait about the sale of the Bod should be made to your authorised itermediary via whom you ivested. A complait about ay other aspect of the Bod should be made to BCP. Ay such complait will be ivestigated i accordace with BCP s complaits policy, details of which are available from BCP. If you are dissatisfied with the hadlig of your complait or the respose to it you may refer the issue to the Fiacial Services Ombudsma or the Pesios Ombudsma, as appropriate by cotactig the relevat office. 9. CONFIDENTIALITY BCP ad the Bak observe a strict duty of cofidetiality about your fiacial affairs. Save at your request or with your coset, either BCP or the Bak will disclose ay details relatig to your ivestmet to ayoe else other tha i the followig circumstaces: - to comply with a Court Order. - to comply with a directio or request from a statutory or regulatory body etitled to such details. - i accordace with ay applicable legislatio. 10. DATA PROTECTION Both BCP ad the Bak are registered uder the Data Protectio Acts 1988 ad 2003 ad your persoal data held by BCP ad the Bak will be maitaied i accordace with the obligatios of the Acts ad subsequet legislatio. 11. CANCELLATION If total fuds received from ivestors at the Closig Date are deemed to be isufficiet or hedgig coditios are adverse, BCP reserves the right ot to proceed with the issue of the Bod ad to repay ivestors. 12. VARIATION These Terms ad Coditios may be chaged if a decisio, recommedatio or chage is made by a Court, Regulator, Ombudsma or by legislatio. BCP will otify you persoally of ay chages ad will edeavour to give you at least 1 moth s otice. 13. CLIENT ASSET ACCOUNTS This product is deposit based ad Bak of Irelad is the uderlyig deposit taker. Ivestors will receive cofirmatio of their ivestmet from Bak of Irelad. Cliet asset accouts cotai fuds which are pooled with other cliets fuds. Ivestors have a claim agaist the cliet assets pool i a specific accout. Fuds are ot afforded protectio uder the Cliet Asset Requiremets util they are swept from the clearig accout at the Bak ito the BCP cliet asset accout. 14. BOND OPERATION Neither BCP, the Bak or their aget(s) will be liable for ay loss you may suffer if BCP, the Bak or their aget(s) is preveted from providig ay service as a result of idustrial actio, power failure or other cause beyod the reasoable cotrol of BCP, the Bak or their aget(s). The Bak acts as deposit taker oly ad is ot liable for the resposibilities of BCP to you i relatio to the Bod, this brochure or for ay other iformatio provided to you by BCP. The Bak is ot offerig fiacial or tax advice to BCP or ivestors. It does ot make ay represetatio, express or implied, as to the ivestmet terms or the performace of the Bod. Ay such statemets herei, as well as all other statemets regardig the Bod, are the sole resposibility of BCP. 15. GOVERNING LAW AND JURISDICTION Our relatioship with you ad these Terms ad Coditios are govered by ad shall be costrued i accordace with the laws of Irelad. By sigig the applicatio form ad subsequet ivestmet istructio form as issued by your pesio platform provider, you agree that ay dispute may be resolved by the courts of Irelad. 16. DEPOSIT GUARANTEE SCHEME/CAPITAL SECURITY Capital security is provided by Bak of Irelad. I the evet Bak of Irelad fails to meet its liabilities, you could lose some or all of your moey. Your ivestmet is held i the ame of your pesio platform provider. As your pesio platform provider is the beeficial ower of the assets, it s importat to ote that this ivestmet is ot covered by the Deposit Guaratee Scheme. BCP Asset Maagemet Limited 71 Upper Leeso Street, Dubli 4, Irelad T: (01) F: (01) E: ivest@bcp.ie W: BCP Asset Maagemet Limited, tradig as BCP, is regulated by the Cetral Bak of Irelad. Registered i Irelad umber Registered office 71 Upper Leeso Street, Dubli 4, Irelad. VAT umber IE F. Bak of Irelad is regulated by the Cetral Bak of Irelad.