Payout Portfolio

Payout Portfolio

Payout Portfolio Bask in the glow of your investment Pick from 80% or 100% capital security Contents Summary Features Investment Rationale 1 SUMMARY FEATURES Potential High Return The current investment cycle began in March 2003 and is now Consumer Goods and Energy, are considered to be defensively 2 INVESTMENT RATIONALE With 100% capital security, investors will receive a maximum potential in its fifth year. By the middle of 2007, world stock markets positioned. By the end of December 2007, the prices of had risen by 115%, European markets by 143% and Ireland the stocks represented in the Payout Portfolio had fallen 3 THE STOCK PORTFOLIO payout of 24% (8.0% EAR) over the investment term if each stock in the Portfolio remains at or above 60% of its initial level. With 80% capital had increased by 167%. By the end of 2007, however, world on average by 16% from their high points reached earlier 5 INVESTMENT RETURNS security, investors will earn up to 52% over the investment term (15.0% EAR) stock markets had fallen by 6% from the high point of the year, in the year. 6 RISK AND RETURN OPTIONS if the same condition is satisfied. European markets had also declined by 6% and Ireland had 7 KEY FEATURES gone down by 30%. The Payout Portfolio is not only seeking to capitalise on this decline but to offer the potential for a high annual return 8 INVESTOR INFORMATION Three Year Term The Account has a short maturity of three years. In response to the credit crisis and the prospect of slower that is not dependent on a recovery in stock prices but on 9 TERMS AND CONDITIONS economic growth in the United States, investor sentiment has the closing price of each stock in the Portfolio remaining 10 APPLICATION FORM Blue Chip Stock Portfolio become more cautious. With the residential housing market at all times above 60% of its initial level at the start of the All of the stocks in the Payout Portfolio are large blue chip names with continuing to decline in the US, there is a risk that consumer investment term. And with an investment horizon of just three market capitalisations ranging from €10 billion to €180 billion. confidence will also fall, thereby exacerbating the credit market years, you have the flexibility to reassess your investment problems. While not immune to the liquidity squeeze and options within a relatively short period of time. Memory Feature events in the United States, business conditions in Europe If there is no payment in the first or second year but there is a payment in a remain reasonably robust and with lower consumer borrowing The Income and Growth Options afford you the opportunity subsequent year, the Account will pay the ‘missed’ payment in the subsequent as a proportion of total income, economic activity should be to mix your investment in whatever combination most closely year. more resilient. matches your appetite for risk and return. The more capital you Managing Your Risk are willing to put at risk (up to a maximum of 20%), the higher Against this background, the Payout Portfolio is comprised your potential return. You can divide your investment between the Income and Growth Options of sixteen of Europe’s leading companies spread across four and thereby tailor the risk and return profile to your own requirements. industry groups whose valuations, in the case of Banks and Healthcare, have fallen significantly in 2007 or, in the case of Pick from 80% or 100% capital security 1/2 The Stock Portfolio Banks Consumer Goods Energy Healthcare Allied Irish Banks Groupe Danone BP AstraZeneca AIB is one of the two major banks in Ireland offering personal The company is one of the largest dairy food, biscuit and The world’s third largest integrated oil company following Anglo-Swedish pharmaceutical company formed in and corporate banking services as well as stockbroking water producers in the world. Its fresh dairy products merger in 1998 of British Petroleum and Amoco of the 1999 through the merger of Swedish based Astra and Zeneca Group services through its subsidiary Goodbody Stockbrokers. Internationally, comprise yogurt, cheese and dairy desserts (Actimel, Activia). LU is the US and subsequent purchase of Atlantic Richfield Company. BP is the of the UK. Zeneca was previously part of ICI prior to a demerger AIB operates mainly in the UK (and as First Trust Bank in Northern principal biscuit brand and water brands include Badoit, Evian and Volvic. largest oil and gas producer in the US and operates about 28,500 in 1993. The company specialises in drugs for cancer, cardiovascular, Ireland), the US and Poland (as Bank Zachodni WBK). It also owns a It recently acquired Numico for €12.3 billion, thereby extending its petrol stations in over 100 countries worldwide. BP Alternative Energy gastrointestinal and respiratory disorders. Acquired MedImmune in 22.5% stake in M&T Bank in the US. product range to baby food and clinical nutrition. is investing significantly in solar, wind and hydrogen power generation. 2007 for q11.2 billion to strengthen its biological and vaccine businesses. Bank of Ireland Nestlé ENI GlaxoSmithKline The Group is the second major bank Based in Switzerland, Nestlé is the world’s largest One of Italy’s largest companies, ENI is Europe’s third This UK based company’s medicines treat six in Ireland providing a broad range of personal and corporate packaged food company with a vast array of products particularly largest refiner, sourcing most of its crude oil from the African major disease areas – asthma, viruses control, infections, mental health, financial services as well as life insurance (Bank of Ireland Life and in instant coffee (Nescafé), confectionery (Aero, Kit Kat, Munchies, continent. Its businesses include petrol distribution (Agip), power diabetes and digestive conditions. It spends q4 billion a year on New Ireland) and investment management (Bank of Ireland Asset Polo, Smarties, Yorkie), seasonings and sauces (Buitoni and Maggi), generation (Enipower), natural gas transmission (Italgas), engineering R&D for these and other new treatments. Its Consumer Healthcare Management). It also provides fund administration and custodial baby foods (Gerber), pet foods (Friskies, Winalot) and bottled water and construction (Snamprogetti) and oil field services (Saipem – 43% division has many leading healthcare products (Aquafresh, Nicorette), services and financial advisory services, including mergers and (Perrier, San Pellegrino, Vittel). It also owns 75% of Alcon (opthalmic owned). The Italian government owns 30% of the company. drinks (Lucozade, Ribena) and over the counter medicines (Gaviscon, acquisitions (IBI Corporate Finance). drugs and contact-lens solutions) and 28% of L’Oréal. Panadol). Royal Dutch Shell Royal Bank of Scotland L’Oréal Formed in 2005 through the merger of Royal Dutch Novartis Based in Edinburgh, the Group is the second largest Headquartered in Paris, L’Oréal is the world’s largest Petroleum of the Netherlands and The Shell Transport Created in 1996 through the merger of Ciba- banking and insurance holding company in the UK and Europe. The beauty products company concentrating on hair care (Redken), skin and Trading Company of the UK, the company has five core business Geigy and Sandoz, this Swiss based company offers a wide-range RBS Group operates a wide variety of banking brands including Ulster care (Lancôme), sun protection (Garnier, Vichy), make-up (Maybelline, segments - exploration and production, gas and power, refining and of healthcare products through four divisions: pharmaceuticals Bank and First Active in Ireland; Coutts, National Westminster Bank Shu Umera) and perfumes (Cacherel, Helena Rubinstein, Ralph marketing (47 refineries and 45,000 petrol stations), petrochemicals (gastrointestinal, hypertension and bone treatments), vaccines and and RBS in the UK; Citizens Financial and Charter One in the US. Lauren). It also owns The Body Shop retailer, is active in the field of (Shell Chemicals) and trading/shipping – across more than 140 diagnostics (viral and bacterial diseases, blood testing), generic drugs Insurance companies include Direct Line and Churchill Insurance. dermatology and is the top nanotechnology patent-holder in the US. countries worldwide. (Sandoz) and consumer health (Ciba Vision, Lamisil, Maalox). UBS Tesco Total Sanofi Aventis Previously known as Union Bank of Switzerland One of the world’s leading food retailers, Tesco has Headquartered in Paris, Total became Total Fina in 1999 Formed in 2004 through the merger of two French prior to its merger in 1998 with Swiss Bank Corporation, UBS is expanded from its core UK base where it has over 2,000 stores and after the acquisition of Petrofina of Belgium and drugmakers, Sanofi-Synthélabo and Aventis, the company operates in Switzerland’s leading retail and corporate bank and has a global now operates over 1,500 stores in 11 countries throughout Europe TotalFinaElf in 2000 after merging with Elf Aquitaine of France. seven major therapeutic areas: cardiovascular, thrombosis (anti-blood presence in private banking, investment banking and securities trading and Asia where it is market leader in Ireland, Hungary, Poland, South Reverting to ‘Total’ in 2003, it operates in more than 130 countries clot agents), metabolic disorders (diabetes and obesity), oncology, (through UBS Investment Bank). It is also one of the world’s largest Korea and Thailand. It is developing a strong presence in non-food - mostly in Europe and Africa – with 27 refineries and more than central nervous system (Alzheimer’s and

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