Investing in this bond BCP Dynamic Multi Manager Bond 2?

tylerdylan · 11-12-2018 1:19pm #1

Hi all
anyone any tips/ comments on this bond?
Parents are being offered to invest and locked in for 5 years.
Management fee is 0.75% a year.

Thanks a million

RedRochey · 11-12-2018 1:40pm

These structured products are good for people who don't want too much hassel with their investments, money is tied up for a few years and 90% of it is protected.

They are very expensive though, there's a few commissions on them per year, so it's more like 5% per year in fees.

tylerdylan · 11-12-2018 1:43pm

The 5% is that for the management fees?
Do they get the money directly from the capital?
They have advised the capital is safe to 95%

RedRochey · 11-12-2018 1:54pm

I guess you could call it a management fee but it's made up of all BCP's costs & commissions (legal fees, custody fees, etc).

By the looks of it, 100% of your capital is invested so I guess they take the fees out at the end when they're returning your money.

tylerdylan · 11-12-2018 1:56pm

Ok thanks so much

RedRochey · 11-12-2018 2:03pm

The bond itself looks interesting, allocating to funds based on Sharpe ratio (instead of just pure returns) seems like a good idea.

Just make sure you know what you're getting into, I wouldn't expect massive returns from this, just somewhere safe to put some money for a few years

tylerdylan · 11-12-2018 2:07pm

If money was sitting in a regular bank saving account earning nothing what would you expect realistically to get back with this fund.
They are saying
250% or 150% Participation in the Index Performance which is added to the capital secure amount (I.e if the fund makes 20% return over the 5 yrs, you p will receive 150% of the growth on top of their initial investment

RedRochey · 11-12-2018 2:14pm

Yes so if they index makes 20% over the 5 years, depending which version you go for, you'd get

a) 20% * 150% = 30% which is added to the capital protection amount of 95%, so 125% of your capital is returned, so you'd make 25% (minus any fees).

b) 20% * 250% = 50% which is added to the capital protection amount of 90%, so 140% of your capital is returned, so you'd make 40% (minus any fees).

Sounds all good but just know that obviously BCP are trying to make this product look the best they can. From my little experience with these types of products, returns can be low.

Geuze · 11-12-2018 2:39pm

tylerdylan wrote: »

Hi all
anyone any tips/ comments on this bond?
Parents are being offered to invest and locked in for 5 years.
Management fee is 0.75% a year.

Thanks a million

Search AAM for info on these tracker bonds.

https://www.askaboutmoney.com/threads/bcp-dynamic-multi-manager-bond-fee-structure.210311/#post-1589518

tylerdylan · 11-12-2018 4:07pm

The stuff the sales rep don't tell :rolleyes:
appreciate the replies thanks guys

CantThinkOfANam · 27-07-2022 2:45pm

Hi,

Just wondering if anyone has any thoughts on the performance of these funds in recent times and how safe they are?

N1vek · 02-08-2022 10:34pm

I have money (20k) in a pension bond. Was doing great but gas fallen back. Due out March '24. Charges high as other poster says. Won't reinvest even if it improves next 18 Months

Investing in this bond BCP Dynamic Multi Manager Bond 2?

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