MMI Stockbrokers has just brought out the second issue of its Millennium Multiplier and Millennium GrowthBonds, tracker bonds linked to the FT-SE 100 and US S&P 500 markets and the Nikkei 225 respectively. Both bonds last just three years and nine months (to the year 2000) and require minimum investments of £5,000. All capital is guaranteed by Woodchester Credit Lyonnais Bank.

The Millennium Multiplier is the more cautious of the two trackers. If both markets show growth of 10 per cent or more over the period, the investor receives a 50 per cent return on the investment. If either market does not achieve a 10 per cent growth performance the investor still gets five times whatever growth is achieved by the weaker market.For example, if the investment is £10,000 and the market growth is just 4 per cent, the investor earns 20 per cent on the initial investment or £2,000 and a total gross return of £12,000.

Under the Millennium Growth Bond, the investor can earn an amount equal to 110 per cent of the growth in the Japanese Nikkei 225 index. For example, if the Japanese market, which MMI notes "has lagged behind the other major markets and currently stands at approximately half its all time high achieved in December 1989", achieves a 50 per cent growth performance over the three years and nine months period, the investor's profit on a £10,000 investment will be 55 per cent or £5,500. They will receive a total gross return of £15,500.

This bond is subject to DIRT tax of 27 per cent and the closing date is December 18th, 1996. Investors should seek independent advice before opting for this or any of the other guaranteed trackers and bonds currently on the market.