Scottish Capital Protected Fund

The Scottish Capital Protected plc is an award-winning, single premium investment bond that provides returns linked to the performance of the world's major stock markets. Investors have the reassurance of knowing that with Scottish Capital Protected plc they are in constant control of the level of risk they take with their capital.

Such is their versatility that you can choose from funds that can:

• grow when the stock market is flat

• beat the stock market when it grows rapidly

• grow even when the stock market falls

• protect your capital when the stock market crashes

All of these funds offer a choice of quarterly capital protection of between 100% and 95%. Funds which take a greater degree of risk, such as those with 95% capital protection, will offer a higher level of potential reward.

Safe CombinationTM

It is now possible to combine the security of 100% capital protection with the long-term growth profile of the higher risk and higher reward funds. They call this your safe combinationTM

This is a clever and yet simple computer-based portfolio management system whereby the timing of switches between different protection levels ensures the preservation of your initial capital at all times whilst maximising the return potential of your unprotected capital

A world of investment choice

The range of protected funds from Scottish Life International covers most of the major markets of the world plus a technology based index.

Investors can link their Scottish Capital Protected plc to indices representing:

• Europe (EURO STOXX 50)

• Japan (Nikkei 225)

• UK (FTSE 100)

• US (S&P 500)

In addition investors have access to an index representing the leading technology companies in the Nasdaq 100.

Investors can create a portfolio based on any combination of these markets or they can select from two mixed funds which will automatically spread their investment across a range of markets.

Multi Index - will passively allocate the investment across Europe, Japan, the UK and the USA according to the size (also known as the market capitalisation) of each market.

Worldwide - will automatically invest 20% into each market (including technology) each quarter giving you the widest spread of investment. This option is only available on the With Bonus range.

What types of protected fund can I invest in?

Once you have decided in which market you wnat to invest your money you will need to decide on how you want to earn your stock market bonuses. You can choose from the following range of capital protected funds, each range has its own simple formula for paying out a bonus.

• Protected Index Funds

• Protected Deposit Bonus Funds

• Protected With Bonus Funds

• Protected Cash Bonus Funds

Each fund range provides a potential bonus and a choice of capital protection from 100% to 95% each quarter with the exception of the Protected Cash Bonus fund where the capital protection level is 100%.

Protected Index Funds.

1. At the start of each quarter a profit rate is declared which determines the extent to which the funds will participate in any growth

2. At the end of the quarter, the profit rate is multiplied by any growth in the stock market index to calculate the bonus for the period. The closing level of the index used in these calculations will be the average value of the index over the final five days of the quarter.

3. This bonus is then added to the protected amount to form the starting value for the following quarter.

If the index falls or does not grow over the quarter, no bonus is added but the capital protected amount - between 95% and 100% remains intact.

Protected With Bonus Funds

1. At the start of each quarter a bonus rate is declared which will be paid in the event of the stock market, to which the fund is linked, not falling over the quarter. The bonus rate is expressed as a percentage of the protected capital.

2. At the end of the quarter the bonus will be added to the protected capital provided the stock market has not fallen. If the stock market has fallen by less than 5% then a partial bonus will be payable. The closing level of the index used will normally be the index level on the final day of the quarter.

3. This new value forms the starting value for the following quarter.

Protected Deposit Bonus Funds

1. At the start of each quarter a bonus rate is declared which will be paid in the event of the S&P 500 and the FTSE 100 not falling over a quarter. The bonus rate is expressed as a percentage of the protected capital.

2. At the end of the quarter the bonus will be added to the protected capital provided neither stock market has fallen. The closing level of the index used in these calculations will normally be the average value of the index over the final five days of the quarter.

3. This new value forms the starting value for the following quarter.

Scottish Capital Protected Fund

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