First Active has launched a new tracker bond, the fifth in its series. It offers two investment choices with varying degrees of security.

This first offers a gross return at maturity of 43 per cent of the growth of the combined stock market indices in which it is invested plus the original capital invested - these include the FTSE 100, the US S&P 500, the Netherlands (AEX) and the Japanese Nikkei 25. The second option offers a higher return of 70 per cent of the growth plus 90 per cent of the original sum invested. The higher return contains a higher degree of risk, in so far that if the growth in the combined indices is less than 14.3 per cent on maturity, investors stand to lose up to 10 per cent of their capital.

Investors should note that all gross returns are subject to deduction of Deposit Interest Retention Tax unless they are entitled to exemptions.